Singapore’s Straits Times Index was little changed at 2,717.70 as of 9:23 a.m. Four stocks gained for every three that fell on the 30-member gauge. The following shares were among the most active in the market.
Asia Environment Holdings (AENV SP), a provider of wastewater treatment services, gained 3.4% to 30.5 cents. The company said profit in the second quarter through September climbed to 17.9 million yuan ($3.7 million) from 11.8 million yuan a year earlier.
China Merchants Property Development Co. said third-quarter net income may as much as triple from a year earlier to about 463 million yuan ($94.7 million) to 513 million yuan, according to a filing to Shenzhen’s stock exchange. Profit for the first nine months may rise 145% to 155% from a year ago to 950 million yuan to 1 billion yuan, according to the statement.
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The world’s bounciest economies have the most undervalued currencies
ONE of the biggest inconsistencies in the global economy today is the fact that emerging Asian economies have rebounded faster than any other region (the gap between their average growth rate and that of developed economies is likely to hit a record high this year), yet most of their currencies have fallen since 2008 in real trade-weighted terms. By many measures—from The Economist’s Big Mac index to more sophisticated gauges—Asian currencies are among the world’s most undervalued.
Take China, the fastest-sprinting economy. In the three years to July 2008 the yuan climbed by 21% against the dollar. But for the past 14 months it has, in effect, been repegged to the dollar. As a result the slide in the greenback has dragged down the yuan’s trade-weighted value by almost 10% since the start of this year (see chart). Morris Goldstein and Nicholas Lardy of the Peterson Institute for International Economics estimated in July that the yuan was undervalued by 15-25%. Some smaller Asian currencies may be even more undervalued. The IMF calculated in March that by one measure South Korea’s won was 41% below its fair value (its trade-weighted value has since gained about 10%). …
Most of us know already that Apple and China Unicom have been in talks to provide the iPhone 3G to the 400 million mobile phone customers in China. Key bits of info were lacking on the initial reports including how much and exactly when the devices would launch.
Yahoo Tech reports that starting in October China [...]
Gloom-defying shoppers from China are flocking to the luxury stores of London’s West End, outspending Arabs, replacing Russia’s departing super-rich and lifting spirits after nine months of recession. Data from tax rebate companies suggests Chinese tourists are spending three to four times
Epure International (EPUR SP), a Singapore-based water treatment company, gained 4.2% to 61.5 cents. The company said it has secured a 562 million yuan ($118 million) contract to build a wastewater treatment facility in Saudi Arabia.
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SRE Group said yesterday it will buy 293.8 million new shares from Singapore-listed China New Town Development Co. for $23.1 million. SRE will also subscribe for as much as 300 million yuan ($63.3 million) of China New Town seven-year convertible bonds.
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