Week in FX Asia – Japan and China Tension Continues

Japan and China island dispute continues. China held a naval exercise which sparked some controversy. Japan on its end is looking to hedge its dependance on rare metal imports from China by looking to partner with India.

US quarterly earning reports and the European crisis were the two major external factors that impacted the Asian economies. The Chinese economic slowdown has reduced the growth outlooks of exporting countries such as Australia who have reduced their interest rates to remain competitive. China’s main trading partners are looking to alternatives to diversify their exports.

• China Funds for FX Rises after Two Consecutive Falls
• China Inflation Slows Down
• RBA October Minutes: Reaction
• Lower Interest and Stronger INR needed – India Finance Minister
• China Lenders Focus on Emerging Industries
• China’s Foreign Investment extends longest run of declines
• Yen Weakens to Two-Month Low on Speculation that BOJ will Boost Stimulus Measures
• Japan PM Noda plans 1 Trillion Yen Stimulus Package
• China Growth Slows for a 7th Quarter Amid Signs of September Pickup
• Japan increases pace of US Bond purchases
• Singapore and Hong Kong to Benefit from German-Swiss Tax Treaty
• China Sep CPI and PPI lower than Aug, meeting expectations.
• Asia Closing: Prices supported across different markets despite lower US stock prices

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