Asia Round Up - Inflation Eases in S. Korea, Thailand, Indonesia
Monday, the week started with some encouraging numbers from major Asian economies. Data showed that inflation slowed in South Korea, Thailand and Indonesia, while retail sales growth gained momentum in Hong Kong. Manufacturing survey results from some countries were also released during the day.
South Korea's consumer price annual inflation stood at 5.6% in August, slower than 5.9% recorded in July, the National Statistical Office revealed Monday. Economists were expecting annual increase in consumer prices to accelerate to 6.3% in August. Month-on-month, consumer prices dropped 0.2%. Core inflation, which excludes food and fuel prices, climbed 4.7% in August from the prior year.
Imports in South Korea increased 37% year-on-year in August, the Ministry of Knowledge Economy said. That was higher than the 33.5% annual gain that analysts had been expecting, but it was less than the 47.2% jump in July. Exports were up 20.6% year-on-year, coming in less than forecasts that had called for a 22.7% annual increase, the data showed. Exports were up 36% in July. The trade balance reflected a deficit of $3.23 billion in August, following a $1.94 billion shortfall in July.
Thailand's annual inflation slowed significantly to 6.4% in August, the Commerce Ministry reported Monday. Economists were expecting the consumer price inflation to ease to 8.7% from a ten ten-year high of 9.2% recorded in July. Excluding fresh food and energy prices, consumer prices rose 2.7% in August, slower than the 3.8% growth expected by economists.
Indonesia's inflation eased to 11.85% in August from 11.9% in July, data from the statistics bureau indicated Monday. Economists were looking for an inflation rate of 11.87% for August. Further, the statistical bureau announced that exports grew about 25% year-on-year and totaled $12.55 billion in July compared with a 34.9% growth in June.
The Census and Statistics Department said Hong Kong's retail sales value increased 13.8% year-over-year to reach HK$24.2 billion in July, faster than the revised 11.7% rise recorded in June. Initially, the June increase was reported as 11.6%. Economists were looking for a 11% rise for July. The retail sales volume rose 6.6% over a year ago in July, after rising 4.1% in June, revised up from the initial estimate of 4%. Economists had expected an increase of 4% for July.
Japanese auto sales declined 14.9% in August from the previous year to 193,902 units, the Japan Automobile Dealers' Association, or JADA said. Domestic sales of cars, truck and buses dropped in August for the first time in two months. According to JADA, car sales were down 12.8% in August, while bus sales declined 23.9%. Domestic car sales totaled 166,153 units and bus sales stood at 1,066 units.
In other news, the average cash earnings for workers in Japan increased by 0.3% on a yearly basis in July, the labor ministry said in a preliminary report, standing at 388,315 yen. That was slightly lower than the revised 0.4% annual increase in the previous month, and it was in line with analyst expectations.
The Manufacturing Purchasing Managers' Index in China posted a score of 48.4 in August, the China Federation of Logistics and Purchasing said, holding flat from the previous month. A reading above 50 indicates economic expansion, while below 50 means contraction. Five individual components were higher in August, while five other components were lower.
The PMI for Hong Kong stood at 48.5 in August, according to data from Markit Economics. That's down from the reading of 49.4 posted in July, and it remained below the index score of 50 that indicates contraction.
India's manufacturing PMI rose slightly in August after falling in July, results of a survey by Markit Economics and ABN AMRO revealed. The ABN AMRO manufacturing PMI rose to 57.9 in August from 57.8 in July. The latest increase in PMI reflected the sharp rise in output and new orders. Copyright(c) 2008 RealTimeTraders.com, Inc. All Rights Reserved
