06/01/2014 Asia Business Report

wind, and high tide over coming days. Those are the headlines. Let's

go to Singapore for the latest business news.

Japan's stock market has a stellar performance. Investor confidence.

Outrageous predictions in the world of business. What are investment

bank is watching out for this year? -- bankers.

The Japanese stock market opened early today for the first time this

year. Investors will be watching closely to see the currency rising

almost 56.7% in 2013. So far, not a good start to the New Year for the

currency, down by more than 2%. Overall, investor confidence has

been driven by government initiatives. There has been

encouraging expansion. We spoke to an expert. I asked him how he found

the current financial landscape. It feels cheap. They have done a

great job to having a loose policy. The yen has collapsed which has

helped exporters, profits, and tourism.

Will Japan get cheaper this year ? They think it will. There will be

more to come from the Bank of Japan. The yen will keep going down. The

corporate sector will boost profits and the stock market.

We saw the stock market and 2013 rise by almost 57%. It is the

highest gain in almost 40 years. Can this be sustained ?

We think it can go up some 15 or 20%. A thing so far, you haven't

rarely had any big things were economics. There has been no

multiple expansion. -- by Abenomics. There is general reform but there is

room to go. This year is a critical year because we will see the

consumption tax being raised to 8%. Could this stifle consumption ?

The consumption tax won't stifle consumption. It is a small drag. The

question is, will Shinzo Abe go forward with any of these reforms ?

Lip service. Will we see action ? You have to be sceptical given the

history of disappointment. Will there be something that push in ? It

would be a concern being overrun by China focusing their attention on

doing more reforms. It isn't impossible but she had to be

sceptical. In the meantime, you have to ride on the benefits of the week

in the. The wins the Indian general election

this year, there will be a new Prime Minister. Manmohan Singh announced

on Friday that he will not seek a third term. The country's deepening

economic crisis means the election will be closely watched by the

business community and investors. The battle begins. The general

election is expected to take place. The 42 -year-old is a powerful

member of a dynasty. Another is a controversial Chief Minister. They

are two competitors for the top job making the public appearances. First

up, a senior leader of the ruling Congress Party, Rahul Gandhi. He

took centre stage to address the business community last summer. Not

often view to taking a prohibition stance, his speech on the Indian

industry focused on public - private partnership. And the other hand when

the opposition candidate hosted his investment Summit, corporate and

foreign officials lined up to support. He is seen as one of

India's business-friendly leaders. He has known for efficient local

government and the relative lack of red tape. Critics say the growth

hasn't been shared broadly enough. Certain states have done better at

bringing down poverty levels. That didn't stop and -- industrialists

from enjoying the press. He was a Minister during the deadly riots in

2002. The UK and other Western governments suspended ties with him

for many years. They have only recently renewed their relationship

with the state. Rahul Gandhi and the opposition election candidate are

seen as front-runners for Prime Minister after the election. Voters

would be choosing between these two men though. Indian politics as farm

or conflict. The backgrounds will play a part as will the plans for

the economy. This fiercely fought competition is still promising many

surprises in the months ahead. In business news, China's state news

agency says the probe into 37,000 official suspected of corruption

between January and November 2013, the officials were allegedly

involved with more than 27,000 cases. Since coming to power just

over one year ago, the Communist Party has taken a tough stance on

corruption, warning it could ruin the party. Tony's marble phone maker

HTC lasts worse profit than expected as it loses ground. It said that its

net profit in the three months to December was $10 million compared to

more than $33 million in the same period lasting. Analysts had been

expecting a larger profit. In Japan, a bluefin tuna at sold for 95% less

than that record-breaking sum paid last year. A sushi restaurant or

paid about $70,000 for the 230 kilograms fish at the famous

Japanese markets. It was the first auction of the year. The fall in the

price comes despite fears of bluefin tuna numbers being depleted.

Interesting good as? There are plenty of predictions being made

about what this new year will be bringing us. What the technology

giant believes everyone will eventually have a smart phone. The

economy's magazine says there will be a real value on vegetables. What

about the economic predictions which might release of predictions for the

share has been put out including a look at what is happening in

emerging markets and the US tech industry.

You are seeing the effects of over the last two years the US Federal

Reserve quantitative easing, money looking for yield anywhere, and

piling into various things at the Hope of a greater growth story,

particularly US technology. Emerging markets is another one wet we have

seen a lot of money coming in here stop the developed world is being

stuck at 0% so people are searching for yield anywhere. What is

happening is that the US is coming out over very long period of low

growth, the state is tapering off and high interest rates are on the

horizon, we are focusing on fundamentals. They are looking at

blue-chip companies with high yields. This is not typically what

technology companies would produce will stop they can to be higher

growth companies that do not pay high dividends.

What impact will this have on Asian manufacturers and suppliers were

Chamakh I don't know if it will be a huge negative effect on

manufacturers and suppliers. "You may find it is the stress is

felt in the industry that a more highly exposed to the US interest

rates rising. To me, that would be the property sector. Technology

manufacturers and suppliers, as long as growth holds its course, I don't

see a huge amount of change. The currency markets, you think the

Indian and Indonesian currencies will appreciate against the US

dollar. Why ? Definitely. The hot money that has

been going in in the search for yield has flowed into emerging

markets. When you paid your currency to other countries and their

currencies, you are affecting the monetary six. -- monetary policy.

Will the Yang Jiechi the ? Yes, at the end of the quarter

probably. Let's have a look at Asian stocks.

Currently they are under pressure as investors look at Commons from the

Federal Reserve that risk quickly the Federal and pull and its

stimulus programme. -- the Federal will end its stimulus programme.

Thank you for your time. BBC News. Headlines: A stream of

Italy called Arctic air is sweeping through you the United States where

temperatures could fall to record lows in the next few days.

Negotiations to resolve the conflict in South Sudan show little progress.

An army general