Asian Financial Hubs Haven For World Business

Singapore's financial district

Will top Asian cities emerge from the effects of economic crisis and position as the new global financial centers?  Does Asian economy better than its European and American counterparts?

The Global Financial Centers Index (GFCI) has recently assessed the rising competitiveness of top Asian financial centers that includes Singapore, Hongkong and Shanghai.  The GFCI is an annual competitiveness ranking of the world’s primary financial hubs based on the global financial environments.  According to the index, these cities are raising prominence in the world’s financial centers after New York and London.  These two cities still remain the leading global financial centers.

Hongkong, Singapore and Tokyo hold the third to the fifth spots according to the report. Shanghai gain ground by settling at sixth place.  The report affirmed the influence of these Asian cities in the world’s financial environment.   The cities of Chicago, Zurich, Geneva and Sydney completed the top 10 financial centers in the world.  Major Chinese cities of Beijing, Shenzen and Shanghai are regarded as most reputable financial centers in the list.

The index report was conducted online based on 7,270 assessments by the Centre for the Study of Financial Innovation from January and June this year.  The study dwelled on the following factors: business environment, people, quality and availability of IT and transportation, and market access.

The GFCI also reported that offshore centers, known as tax havens, have declined in the rankings as it drives for greater transparency.   The Isle of Man declined by eight notches to rank 32; the Cayman Island dropped to 34^th spot and the Bahamas to number 64.   According to one financial analyst in New York, the Caymans and the Bahamas which are doing good business at present still have their bad reputation as financial hubs in the world.

With this current trend in the financial environment and the strong economy shown by most Asian countries, New York and London might be dislodged in the future surveys as top financial hubs in world.

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UK Braces For Cyber Attacks, Terrorism

British Prime Minister Gordon Brown visits a business and technology consultancy firm on the launching of Cyber Security Strategy launching (AP photo)

Terrorism, cyber attacks and natural catastrophes pose major threats to UK as cited by top national security officials in a recent National Security Strategy.  The report was released prior to a major military review on defense budget that may be slashed off.

The military report cited intelligence reports that the Al-Qaeda and Northern Irish terrorist groups are making some movements for big offensive against the government and upcoming international events.  The Olympic Games, to be hosted by London, in 2010  was cited as an 'attractive target' for terroristic attack.

"Our strategy sets clear priorities - counter-terrorism, cyber attacks, international military crisis, and natural disasters such as floods," the government said in its report entitled "A Strong Britain in an Age Of Uncertainty".  The issues on unconventional threats to national security will be used to justify cuts to the nation's large military hardware spending.

The government is making some fiscal moves to slash its record budget deficit of close to 11 percent of the national output, but will have to maintain Britain a strong military power in Europe.   The report stated that the planned budget slash will strengthen the nation's finances to a more sustainable leverage on its economy. 

Cyber attacks have been a global issue on criminality as a source for financial gain as well as attacks by cyber terrorists on military, utilities, transport, media and other networks to disrupt operations.  The British government is coming up with a "transformative program" on cyber security with a 500-million British pounds in budget.  The program aims to strengthen security ties with emerging global cyber powers such as China and India.

 

Asian Market Kick Off 2010 with Modest Gain

HONG KONG (AP) – Most Asian markets started off 2010 with moderate gains Monday as investors weighed mixed signs from the region's economies. European shares opened higher.

Major benchmarks in Europe gained a little less than 1 percent in early trade after Japan led Asia's advance. Crude oil prices punched through $80 a barrel, and the dollar slipped against the yen.

Investors were encouraged by a report showing China's manufacturing expanded at its fastest rate in 20 months in December, the latest sign the world's third-largest economy was continuing to grow strongly, aided by government stimulus measures.

But the mood was offset by worries about another recession in Singapore after the government said the local economy shrank last quarter for the first time since early 2009.

"We'll still see improvements in Asia in 2010, but a strong rebound isn't certain everywhere in the region because global demand may not pick up quickly," said Belle Liang, head of research at Core Pacific-Yamaichi International in Hong Kong.

As trading started in Europe, Britain's FTSE 100 gained 0.7 percent, Germany's DAX rose 0.8 percent and France's CAC-40 added 0.9 percent. Wall Street futures pointed to a stronger open on Wall Street Monday. Dow futures were up 59, or 0.6 percent, to 10,424 and S&P futures gained 7.7, or 0.7 percent, to 1,118.40.

In Tokyo, the Nikkei 225 stock average advanced 108.35 points, or 1 percent, to 10,654.79, with Japan Airlines surging 31 percent after the government said it was readying additional financing to the troubled airline.

South Korea's Kospi added 0.8 percent to 1,696.14. Australia's main index was up 0.1 percent and India's benchmark gained 0.5 percent.

Other markets slipped, with Hong Kong's Hang Seng off 0.2 percent at 21,823.28 and Shanghai's index down 1 percent to 3,243.76. Singapore's market lost 0.1 percent.

This week, investors will be watching for signs of improvement in a key US jobs report due out Friday. Economists generally expect the data to show the American economy shed more jobs in December. A stronger-than-expected report, however, might also rattle the market by prompting speculation the US central bank will raise interest rates sooner than thought.

Last week in the US, the Dow Jones industrial average closed out the year shedding 120.46, or 1.1 percent, to 10,428.05. For the year, the Dow rose 1,651.66, or 18.8 percent.

The broader Standard & Poor's 500 index, considered to be the market's best barometer, fell 11.32, or 1 percent, to 1,115.10. The S&P ended the year with a gain of 211.85, or 23.5 percent.
Oil prices rose in Asia, with benchmark crude for February delivery up $1.12 at $80.48

The dollar fell to 92.90 yen from 93 yen, and the euro was higher at $1.4325 from $1.4323.

Asian stock markets skid amidst US economy recovery

TOKYO (AP) — Asian stock markets fell Monday after grim news about American consumers sewed more doubts about the strength of the U.S. economic recovery and sent Wall Street tumbling last week.

Exacerbating investor worries was U.S. lender CIT Group's bankruptcy filing Sunday, which dragged financials sharply lower across the region.

Japan's key Nikkei 225 stock average led Asian declines, down 2.2 percent at 9,820.92 . Hong Kong's Hang Seng index lost 1.7 percent at 21,378.17, while Australia's S&P/ASX200 was down 2.2 percent.

Benchmarks in South Korea, New Zealand, Taiwan and Singapore also fell, though the region recovered some early losses on strength in mainland China. The Shanghai Composite index was the only major market in positive territory, up 1.5 percent at 3,040.95.

On Friday, U.S. markets sold off after government figures for September showed personal spending fell 0.5 percent and personal income remained flat compared to the previous month. A drop in a key measure of consumer sentiment added to the day's troubling signs that U.S. consumers, whose voracious spending helped drive global growth before the crisis, were unlikely to resume their spendthrift ways anytime soon.

More bad news followed Sunday with CIT filing for Chapter 11 protection after struggling for months to avert bankruptcy. It was one of the biggest filings in U.S. corporate history, following Lehman Brothers, Washington Mutual, WorldCom and General Motors.

The latest U.S. developments only add to the market's confusion over where exactly the world's biggest economy is headed, analysts said.

"People have been skeptical all along (of the U.S. economy)," said Francis Lun, general manager for Fullbright Securities in Hong Kong.

"That's why you have these wild gyrations all over, because you have good figures one day and then bad ones the next day."
Financials retreated in the wake of CIT's bankruptcy.

Mitsubishi UFJ Financial Group Inc., Japan's biggest bank, lost 1 percent, while brokerage Nomura Holdings Inc. fell 2.9 percent. In Sydney, National Australia Bank Ltd. slid 3.3 percent, while HSBC Holdings was down 1.5 percent in Hong Kong.

Concerns about the U.S. outlook and the strong yen hit Japanese exporters, including Sony Corp. The issue plunged 5.6 percent, despite the company reporting a smaller-than-expected 26.3 billion yen ($289 million) quarterly loss on Friday.

The Dow fell 249.85, or 2.5 percent, to 9,712.73 on Friday. It ended October with a meager gain of 0.005 percent.

The broader Standard & Poor's 500 index fell 29.92, or 2.8 percent, to 1,036.19, and the Nasdaq composite index dropped 52.44, or 2.5 percent, to 2,045.11.

U.S. markets were headed for a higher open. Dow futures rose 42 points, or 0.43 percent, to 9,706, while S&P futures climbed 5.50, or 0.5 percent, to 1,038.50.

Oil prices were higher after a big fall, with benchmark crude for December delivery up 51 cents to $77.51 a barrel. The contract dropped $2.87 to settle at $77.00 on Friday.

The dollar was trading higher at 89.97 yen from 89.67 yen late Friday. The euro edged up to $1.4763 from $1.4714.