JAPAN
BOJ cuts bond purchases
The Bank of Japan (BOJ) made the biggest cut to its purchases of five-to-10-year bonds since starting yield-curve control in 2016, as the global debt rally drove the rate on the nation’s benchmark out of its target range and closer to record lows. The central bank offered to buy ¥400 billion (US$3.8 billion) in the key maturity zone, down from ¥450 billion at its previous regular operation. The nation’s 10-year yield rose after the operation, with yields on similar-maturity US Treasuries also moving higher. Speculation that the BOJ would step in to halt the slide in yields had intensified as the benchmark yield dropped to within 1 basis point of an all-time low of minus-0.3 percent. Market watchers consider tapering bond purchases as the easiest option for the central bank.
SOUTH KOREA
Interest rate maintained
The Bank of Korea yesterday left its key interest rate unchanged as it monitors the effect of last month’s rate cut amid rising economic risks. The decision to keep the seven-day repurchase rate at 1.5 percent was forecast by 22 of 25 economists surveyed by Bloomberg. Three expected a cut to 1.25 percent. A majority of analysts expect borrowing costs to be lowered later this year, a separate Bloomberg News survey showed. Some economists had said consecutive rate cuts were unlikely, as they would have suggested that policymakers thought the economy was in a critical state, an impression officials are keen to avoid. Standing pat would also offer time for the central bank to assess the effect of the US Federal Reserve’s decision next month. “If the Fed acts in September, the Bank of Korea will probably go ahead with a cut in October,” said An Young-jin, an economist at SK Securities. In a statement after the decision, the Bank of Korea said that the uncertainties over its growth and inflation forecasts had increased. It cited the US-China trade dispute and geopolitics as risks to growth.
TECHNOLOGY
Huawei missing Google apps
Huawei Technology Co’s (華為) upcoming flagship Mate 30 smartphone is to launch next month without Google apps, creating a disadvantage for the Chinese tech giant hit by US sanctions. A Google spokesperson on Thursday confirmed that the California firm would not be able to deliver licensed applications such as Gmail, Maps and YouTube for the new device because of sanctions imposed by US President Donald Trump. As a result, Huawei is only able to pre-load the open-source Android operating system. The move could be another hit for Huawei, the tech powerhouse that became the No. 2 global smartphone vendor before sanctions imposed by Washington over national security concerns, which prevent the export of US technology.
UNITED KINGDOM
Home prices stay put
House-price growth remained stuck in a subdued pattern this month as worries about the economy knocked consumer confidence lower. The Nationwide Building Society said that the values were unchanged on the month and rose 0.6 percent from a year earlier. That is a ninth straight month of sub-1 percent increases. The release came as GfK SE said that consumer sentiment fell to match its lowest level in six years. With a no-deal Brexit possible, households are becoming more concerned about their finances and the broader economy. Their outlook for the latter is now near its worst since 2011. They could also be fretting about the effect of the weaker pound on inflation and their shopping bills.
Among the rows of vibrators, rubber torsos and leather harnesses at a Chinese sex toys exhibition in Shanghai this weekend, the beginnings of an artificial intelligence (AI)-driven shift in the industry quietly pulsed. China manufactures about 70 percent of the world’s sex toys, most of it the “hardware” on display at the fair — whether that be technicolor tentacled dildos or hyper-realistic personalized silicone dolls. Yet smart toys have been rising in popularity for some time. Many major European and US brands already offer tech-enhanced products that can enable long-distance love, monitor well-being and even bring people one step closer to
Malaysia’s leader yesterday announced plans to build a massive semiconductor design park, aiming to boost the Southeast Asian nation’s role in the global chip industry. A prominent player in the semiconductor industry for decades, Malaysia accounts for an estimated 13 percent of global back-end manufacturing, according to German tech giant Bosch. Now it wants to go beyond production and emerge as a chip design powerhouse too, Malaysian Prime Minister Anwar Ibrahim said. “I am pleased to announce the largest IC (integrated circuit) Design Park in Southeast Asia, that will house world-class anchor tenants and collaborate with global companies such as Arm [Holdings PLC],”
Thousands of parents in Singapore are furious after a Cordlife Group Ltd (康盛人生集團), a major operator of cord blood banks in Asia, irreparably damaged their children’s samples through improper handling, with some now pursuing legal action. The ongoing case, one of the worst to hit the largely untested industry, has renewed concerns over companies marketing themselves to anxious parents with mostly unproven assurances. This has implications across the region, given Cordlife’s operations in Hong Kong, Macau, Indonesia, the Philippines and India. The parents paid for years to have their infants’ cord blood stored, with the understanding that the stem cells they contained
Sales in the retail, and food and beverage sectors last month continued to rise, increasing 0.7 percent and 13.6 percent respectively from a year earlier, setting record highs for the month of March, the Ministry of Economic Affairs said yesterday. Sales in the wholesale sector also grew last month by 4.6 annually, mainly due to the business opportunities for emerging applications related to artificial intelligence (AI) and high-performance computing technologies, the ministry said in a report. The ministry forecast that retail, and food and beverage sales this month would retain their growth momentum as the former would benefit from Tomb Sweeping Day