■ FINANCE
Bank of China posts risks
Bank of China (中國銀行) said it had posted 26.3 billion yuan (US$3.8 billion) in potential losses on assets at the end of last month, partially related to US subprime mortgage-backed securities. China’s largest foreign exchange bank also reported a net profit of 17.8 billion yuan in the third quarter, up 11.5 percent from a year earlier, according to a filing with the Hong Kong Stock Exchange late on Wednesday. The potential losses on assets for the first nine months of the year more than doubled from 10.8 billion yuan a year earlier because of new paper losses on loans and foreign currency investment securities, the bank said.
■RUSSIA
Foreign reserves drop
Foreign currency reserves fell by US$31 billion last week, the Central Bank said yesterday, as Moscow defended the ruble against volatility and poured money into struggling firms. Currency reserves fell from US$515.7 billion to US$484.7 billion in the week ending last Friday, the Central Bank said in a statement, a fall of 6 percent. The country has the biggest foreign currency reserves in the world after Japan and China, amassed in recent years thanks to high oil prices.
■ELECTRONICS
Hitachi reports quarterly loss
Hitachi Ltd reported a quarterly loss of ¥17.4 billion (US$167 million) yesterday amid a global slowdown in export markets and a surge in prices for oil and other raw materials. The quarterly loss compared with a net profit of ¥558 million in the same period last year. The company also slashed its profit forecast for the fiscal year ending March to ¥15 billion from ¥40 billion. Sales were projected at ¥10.9 trillion, down 3 percent from last year. For the July to September period, soaring raw materials costs and slack demand hurt Hitachi’s automotive systems and semiconductor businesses, the company said.
■ELECTRONICS
Sharp reports lower profits
Sharp Corp said yesterday its net profit in the first half slumped 35 percent because of the global economic downturn, which has eroded demand for its products and forced prices down. The company said in a statement that net profit fell to ¥28 billion for the six months to Sept. 30. Operating profit dropped 35.8 percent to ¥50.76 billion on sales of ¥1.56 trillion, down 4.8 percent from the same period last year. The company left its forecast for the full year unchanged from a downward revision made earlier this month, with net earnings to drop 41.1 percent to ¥60 billion. It forecasts operating profit to fall 29.2 percent to ¥130 billion on revenue barely changed at ¥3.42 trillion.
■ELECTRONICS
Hynix reports higer losses
South Korea’s Hynix Semiconductor, the world’s second-largest memory chipmaker, said yesterday its net loss rose sharply in the third quarter on lower world prices and losses on write-offs. The net loss was 1.65 trillion won (US$1.2 billion) for July to last month, the fourth consecutive quarterly deficit. The figure compared with a 707 billion won loss in the second quarter and a 168 billion won net profit in the third quarter of last year, the company said in a statement. The third-quarter operating loss was 463 billion won, from a profit of 262.9 billion a year earlier.
DETERRENCE: With 1,000 indigenous Hsiung Feng II and III missiles and 400 Harpoon missiles, the nation would boast the highest anti-ship missile density in the world With Taiwan wrapping up mass production of Hsiung Feng II and III missiles by December and an influx of Harpoon missiles from the US, Taiwan would have the highest density of anti-ship missiles in the world, a source said yesterday. Taiwan is to wrap up mass production of the indigenous anti-ship missiles by the end of year, as the Chungshan Institute of Science and Technology has been meeting production targets ahead of schedule, a defense official with knowledge of the matter said. Combined with the 400 Harpoon anti-ship missiles Taiwan expects to receive from the US by 2028, the nation would have
North Korea yesterday fired about 10 ballistic missiles to the sea toward Japan, the South Korean Joint Chiefs of Staff (JCS) said, days after Pyongyang warned of “terrible consequences” over ongoing South Korea-US military drills. Pyongyang recently dashed hopes of a diplomatic thaw with Seoul, Washington’s security ally, describing its latest peace efforts as a “clumsy, deceptive farce.” Seoul’s military detected “around 10 ballistic missiles launched from the Sunan area in North Korea toward the East Sea [Sea of Japan] at around 1:20pm,” JCS said in a statement, referring to South Korea’s name for the body of water. The missiles
North Korea tested nuclear-capable rocket launchers, state media reported yesterday, a day after Seoul detected the launch of about 10 ballistic missiles. The test comes after South Korean and US forces launched their springtime military drills, due to run until Thursday. North Korean leader Kim Jong-un on Saturday oversaw the testing of the multiple rocket launcher system (MRLS), the Korean Central News Agency (KCNA) said. The test involved 12 600mm-caliber ultra-precision multiple rocket launchers and two artillery companies, it said. Kim said the drill gave Pyongyang’s enemies, within the 420km striking range, a sense of “uneasiness” and “a deep understanding
‘UNWAVERING FRIENDSHIP’: A representative of a Japanese group that co-organized a memorial, said he hopes Japanese never forget Taiwan’s kindness President William Lai (賴清德) yesterday marked the 15th anniversary of the Tohoku earthquake and tsunami, urging continued cooperation between Taiwan and Japan on disaster prevention and humanitarian assistance. Lai wrote on social media that Taiwan and Japan have always helped each other in the aftermath of major disasters. The magnitude 9 earthquake struck northeastern Japan on March 11, 2011, triggering a massive tsunami that claimed more than 19,000 lives, according to data from Japanese authorities. Following the disaster, Taiwan donated more than US$240 million in aid, making it one of the largest contributors of financial assistance to Japan. In addition to cash donations and
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