.
Asia’s
export-driven developing economies will expand faster than
expected in spite of higher oil prices and interest rates, the
Asian Development Bank forecast.
.
Because
China’s exchange rate is much lower than it would be if market
force prevailed (estimates of under-valuation range from 15% to
40%), other Asian countries, notably, Japan, South Korea and
Taiwan, have kept their currencies artificially low as well.
This keeps their exports cheap, which have added to the woes of
US manufacturers and contributed to a record US trade deficit.
.
Even
as crude oil prices have soared about 65% in 2003, China
imported 586 million barrels during the first 8 months of the
year, up 39% over the same period last year.
.
China
remains a remarkably Balkanized economy and market that is
unlikely to recognize Shanghai or any other city, as its
financial capital anytime soon.
.
As long as China remains the world capital of intellectual
piracy, it is unlikely that foreign firms will want to do their
research and product development there.
.
Millions
of Chinese were on the move Oct. 1 at the start of the annual
National Day holiday, part of the Govt’s growth-boosting
Golden Week of shopping, dining and traveling.
.
SinoChem,
China’s state-run oil trader, acquire South Korean refiner
Incheon Oil for $552 million as art of effor to meet China’s
thirst for oil.
.
With
the emergence of Shanghai as an economic boomtown, much of it
financed with Hong Kong money, it’s just a matter of time
before Hong Kong would be overtaken as a corporate and financial
center.
.
Hong Kong relies on the mainland for much of its new capital and
the majority of ts tourist trade, while Mandarin is replacing
English as its second language after Cantonese.
.
Hong Kong sands a good chance of emerging as the leading source
of high-end professional services and product design.
.
After
meeting with State Secretary Colin Powell, China’s top
diplomat accused the US of endangering peace in the Taiwan
Straits by selling weapons to Taiwan.
.
Japan’s
steel industry has abandoned oil altogether, switching entirely
to coal-based fuels to heat forges.
.
PM
Junichiro Koizumi named a new cabinet handing Heizo Takenaka,
architect of Japan’s financial reform, the task of privatizing
the post office, the world’s largest financial institution.
.
The
Bank of Japan’s quarterly survey of business confidence known
as the Tankan, showed that a key index of confidence in
the Japanese economy among large manufacturers rose to 26% in
Sept. from 22% in June for its best showing in 13 years.
.
Japan’s
super-fast rail service, known worldwide as the bullet train,
marked its 40th birthday on Oct. 1 amid concerns
about an anticipated giant earthquake and growing competition
from airlines.
.
Japanese
companies said they were more cautious about the business
environment over the next 3 months reflecting concern about a
slowdown in China and the US as well as falling demand in the IT
sector.
.
The
South Korean Foreign Minister said that intelligence indicating
a possible launch of a North Korean ballistic missile is “very
alarming” and it could set back diplomatic efforts to resolve
the crisis over Pyongyang’s nuclear ambitions.
.
US analysts said the land-launched missile is derived from the
Soviet SS-N-6, a 1960s-era submarine-launched model. Some
reports estimate its range at more than 3500 kilometers, enough
to reach Guam, a US territory with a large military presence.
.
The high price of oil could be bad news to China’s neighbors,
notably Japan and South Korea, which have grown increasingly
reliant on exports to China for their own economic growth. The
loss of sales to China could be even more harmful than the rise
in oil prices.
.
South
Korea, psychologically remains an occupied territory. There is
much popular resentment of the American troops stationed there.
There is also great fear of what might happen if they left.
.
The
US Govt. protested against detention of six Newmont Mining
executives in Jakarta.
.
Thailand’s
Foreign Minister, Surakiart Sathirathai, a US-educated lawyer
with a background in politics, finance and international
economics, has emerged as an early favorite to succeed Kofi
Annan as Secretary-General when his term ends in 2006.
.
The question is—how much did Thailand pay some of the
countries in Asia to get their support in view of other
qualified, if not better qualified, candidates in the region,
e.g., Indonesia and the Philippines? Is the position now
available to the highest bidder?
.
Is the Secretary’s position at the UN an exclusive monopoly of
only representatives from Africa and Asia? How about the new
countries of Eastern Europe?
.
Thailand
is now importing 140% more oil than a decade ago to fuel an
industrializing economy. The government has enacted emergency
energy conservative measures that include reduced hours for
department stores.
.
Thailand’s
inflation rate accelerated to a 68-month high of 3.6% annually
in Sept., from 3.1% in August, pushed by record oil prices, a
weak bath and a cut in subsidies aimed at keeping domestic
prices low, the Commerce Ministry said.
.
Abdullah
Badawi, PM of Malaysia, suffered a setback to his standing in
the ruling United Malays National Organization when several
allies lost in party election.
.
Analysts said UMNO delegates might have sought to curb Mr.
Abdullah’s power nearly a year after he assumed office. He
surprise election outcome also provoked allegations in the local
media of vote-buying, which has plagued previous party polls.
.
Four
officials of Burmese opposition leader, Aung San Suu Kyi’s
National League of Democracy have been jailed for seven years
after a closed trial inside a jail, a lawyer said.
.
The
sultan of Brunei, one of the world’s last absolute rulers,
signed a constitution for the oil-rich state that will allow
limited election for the first time in 42 years.
.
A
wave of bombings and shootings killed 46 people in two states in
India’s remote and turbulent northeast (Nagaland bordering
Burma, and Assam bordering Bangladesh), underscoring the
continued threat from separatist groups that have battled the
government for decades.
.
Indian soldiers shot
and killed 15 Muslim rebels in separate gun battles across
Kashmir, police and border security officials said.
.
Tea plantation workers in the NE Indian state of Assam went on
strike to protest against recent deaths of several hundred
co-workers from water-borne diseases.
.
India
produces more than 800 million kg of tea each year and is the
world’s largest producer by volume, accounting for about a
third of global productions.
.
Most
of the tea is drunk locally, while India’s tea exports, mainly
to Russia, Middle East and the UK, form about a 12% share of
world exports.
.
Microsoft extended its trial of a new low-price version of the
Windows PC operating system to India, a country with one of the
highest software piracy rates in the world. The trial price of
the program in India is expected to be about $40.
.
Andra
Pradesh, one of India’s largest states, announced
unconditional talks with leftwing insurgents against a backdrop
of rising concern about a “red arc” of Maoist guerrillas
stretching from Nepal to South India.
.
At
least 25 Shia Muslims were killed and up to 50 were injured in a
suicide attack at a mosque in central Pakistan early this month.
It was carried by an unidentified bomber at a mosque in Sialkot,
where there were more than 1,000 worshippers.
.
India
& Pakistan hailed a new beginning in efforts to resolve
their long-running dispute over Jammu & Kashmir, and debated
the possibility of bidding a gas pipeline linking the two
countries.
.
Ireland
will cut off direct-dialed calls to 13 nations, mostly South
Pacific islands, in an attempt t deter criminals from breaking
into people’s computers and hijacking their modems for profit.
.
Afghan
refugees who have lived more than 2 decades in neighboring
Pakistan registered for their homeland’s first direct
presidential election on October 9.
.
The estimated 2 million to 3 million refugees who live mainly in
the border cities of Quetta & Peshawar, and in sprawling
chaotic camps could represent as much as 10% of the voters.
.
Another 400,000 to 600,000 refugees, many from the minority
Hazara ethnic group, are expected to vote in Iran.
.
There is fear that Pakistanis will vote in the border regions.
Many people in the camps have no documentation and are
ethnically undistinguishable from the Pakistani Pashtuns or
Pathans.
.
The
election for members of the vast central Asian state’s lower
house is seen as a test of Kazakstan’s ability to match rapid
economic growth with political pluralism in a region dominated
by ex-Soviet authoritarian leaders.
