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Asia Focus Video: Indonesian economy shines in Asian region
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In this weekly Asia Focus video Andrew Robinson, Correspondent for Saxo Capital Markets, takes a special look at the Indonesian economy which appears to be in good shape and as a result could be in for a ratings upgrade. He also gives snapshots of some recent market news and events in Australia and China and reviews the latest Japanese trade data.
The Indonesian economy, which tends to be overlooked in the Asian region, has been performing well with steady growth rate improvements in the last three years and having come out of the global financial crisis in 2008 relatively unscathed. Indonesia has now unveiled its 2012 budget which indicates growth in the economy of 6.7%, making it a more than likely candidate for a ratings upgrade. The country’s stock market is also doing well with the Jakarta Stock Exchange having risen close to 8 percent in the year to date, making it one of the best performing markets in the region and a positive story amid global doom and gloom scenarios of late.
Elsewhere in the region focus is on U.S. Vice President Joe Biden’s meeting in Beijing with Chinese Vice President Xi Jinping. While Yuan revaluation is always lurking behind the scenes of such talks, there’s no clear agenda (or resultant noise and hurry on that matter), apart from a handshake affair before the Chinese leader takes on the presidential post in 2013.
Japan reported its second trade surplus in two months and although it confirms the economy has now overcome the tsunami effect and the production supply chain is well on stream, exports are slowing, indicating that less growth in China and the U.S. are starting to take their toll.
Minutes released from the Reserve Bank of Australia’s early August meeting have pointed to a fragile economic outlook and a wait and see approach on rates which has left markets pricing in an expectation of about a 140 basis point easing within the next year.
The Indonesian economy, which tends to be overlooked in the Asian region, has been performing well with steady growth rate improvements in the last three years and having come out of the global financial crisis in 2008 relatively unscathed. Indonesia has now unveiled its 2012 budget which indicates growth in the economy of 6.7%, making it a more than likely candidate for a ratings upgrade. The country’s stock market is also doing well with the Jakarta Stock Exchange having risen close to 8 percent in the year to date, making it one of the best performing markets in the region and a positive story amid global doom and gloom scenarios of late.
Elsewhere in the region focus is on U.S. Vice President Joe Biden’s meeting in Beijing with Chinese Vice President Xi Jinping. While Yuan revaluation is always lurking behind the scenes of such talks, there’s no clear agenda (or resultant noise and hurry on that matter), apart from a handshake affair before the Chinese leader takes on the presidential post in 2013.
Japan reported its second trade surplus in two months and although it confirms the economy has now overcome the tsunami effect and the production supply chain is well on stream, exports are slowing, indicating that less growth in China and the U.S. are starting to take their toll.
Minutes released from the Reserve Bank of Australia’s early August meeting have pointed to a fragile economic outlook and a wait and see approach on rates which has left markets pricing in an expectation of about a 140 basis point easing within the next year.