China’s Economic Recovery Gives Boost to Xi Amid Reform Summit

China’s economy entered the final quarter of 2013 with an acceleration in manufacturing and exports, momentum that offered confidence to Communist leaders gathering to determine policy shifts for the coming decade.

Industrial output rose a more-than-estimated 10.3 percent from a year earlier in October and manufacturing investment strengthened, according to data released Nov 9. by the National Bureau of Statistics. Customs data the previous day showed overseas sales rebounded by more forecast.

Failure to implement reforms on issues ranging from interest rates to local government debt and land ownership risks impeding the party’s goals of boosting incomes and spurring hundreds of millions of rural residents to move to the cities. President Xi Jinping and top Communist leaders tomorrow conclude a four-day gathering to map out an economic blueprint for changes that the State Council’s research institute says should include curbing the government’s role in the economy, adjusting the fiscal system and spurring foreign investment.

Standard Chartered last month raised its estimate for China’s 2013 economic growth to 7.6 percent from 7.5 percent and revised next year’s forecast to 7.4 percent from 7.2 percent. The new projections match the median estimates in Bloomberg News surveys in October.

(Source: Bloomberg)

Most Asian Stocks Fall on U.S. Stimulus Bets After GDP

Most Asian stocks fell, with the regional benchmark index heading for the longest streak of weekly losses in five months, after faster U.S. economic growth fueled concern the Federal Reserve may reduce stimulus sooner than expected.

Fortescue Metals Group Ltd. (FMG) sank 4.7 percent after Teck Resources Ltd. sold a stake worth about A$500 million ($473 million) in Australia’s third-biggest iron-ore exporter. Honda Motor Co. declined 0.8 percent after the yen yesterday surged against the dollar, curbing the outlook for Japanese exporters. Samsung Electronics Co. preferred shares declined 4.2 percent in Seoul after Citigroup Inc. managed the sale of a $350 million stake in the electronics firm.

The MSCI Asia Pacific Index dropped 0.2 percent to 139.95 as of 9:41 a.m. in Hong Kong, extending this week’s retreat to 0.9 percent, its third straight weekly loss. More than three shares declined for every one that rose. The gauge gained 8.4 percent this year through yesterday amid unprecedented stimulus from the Bank of Japan and optimism the Fed will continue its bond buying into 2014.

(Source: Bloomberg)

Asian Stocks Fall Ahead of Release of U.S. Economic Data

Asian stocks fell as investors await economic data from the U.S. and amid concern gains in equities over the past two months have outpaced the prospects for company earnings.

Suntory Beverage & Food Ltd. sank 2 percent in Tokyo as the soft-drink maker that raised $4 billion in Japan’s largest initial public offering this year cut its profit projection. Ausdrill Ltd. slumped 28 percent in Sydney after the drilling contractor cut its profit forecast. GungHo Online Entertainment Inc. gained 1.6 percent as Japan Exchange Group Inc. and Nikkei Inc. said the Internet-game maker will be included in their new index.

The MSCI Asia Pacific Index lost 0.2 percent to 141.13 as of 10:15 a.m. in Tokyo, before markets open China and Hong Kong. Eight of the 10 industry groups on the gauge fell. The measure rose 9.3 percent this year through yesterday amid unprecedented stimulus from the Bank of Japan and optimism the Federal Reserve will continue its monthly bond buying into 2014.

Japan’s Topix index swung between gains and losses. Australia’s S&P/ASX 200 Index fell 0.2 percent, dragged lower by banks as Australia and New Zealand Banking Group Ltd. and National Australia Bank traded without the right to the current dividend.

(Source: Bloomberg)