08/01/2016 Asia Business Report


Live from Singapore, the essential business news as it breaks and a look ahead to the news that will shape the business day.

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Now on BBC News all the latest business news live from Singapore.


Asian stocks are falling but Chinese markets that have just opened are


higher. A slippery slope for oil and we find out why they have tumbled to


a 12 year low. Welcome to Asia Business Report. We have been


watching Chinese stocks and they have just reopened for the first


time since yesterday. The benchmark is currently up 3%. It is a huge


relief for many investors. China's authorities say they have suspended


the circuit Baker and is that led to trading being stopped -- breaker. We


have seen of course Japan's Nikkei has been lower because of this


positive" have seen in China. This has been a hugely volatile week from


markets and we saw them having the worst ever start. The very latest,


let us go live. We have seen this positive open the Chinese stocks and


a lot of investors are reading a huge sigh of relief. What do we owe


it to? I think it is part of the mini rollercoaster ride that our


markets are coming back from the holidays. The year has kicked off


but multiple new policies are kicked into place at the start of the New


Year. But only in regard to the circuit breakers, but where the new


trade index has started to garner more attention given how it is


starting to influence the fixing. It is not to say that markets will


inevitably stay on the front foot for the rest of the year. I would


say I would buckle up for a copyright. -- bumpy ride. Investors


are tired of hearing that, I think. We are sing a game of people are


questioning the confidence of the regulators of China due to this


constant going back and forwards removing these circuit breakers.


What is this say about policy? It is creating confidence amongst


investors? There is a very nuanced fact that we need to acknowledge and


that is the way in Chinese officials have introduced new policies they


have always accompanied it with several reiteration is as to what to


drop the policies and the details of those policies. Investors,


typically, nonetheless, have a knee-jerk reaction when the outcome


comes into play. People knew it was coming into January one. And with


the expiration of the six-month ban, everyone knew that was coming this


Friday. On top of that, with the currency as well, they are aiming


for stability. We have been looking at how that currency has been


trading. We are seeing that Asian markets are reversing those previous


losses. Is it a surprise that a lot of global investors are reacting


this way to all this volatility in China and should they be reacting


that way when there's really only 2% of foreign investors invested


there? It is not an entire surprise when a new policy comes out and


markets have become accustomed to the pre-existing policy. It always


take -- takes time. Keep a clear head and keep your eyes focused on


what the underlying processes. They are supporting growth and ensuring


the gear acceleration does not get too sharp. Keep an eye on what they


are saying but at the same time make sure you understand that different


pieces I'm -- are moving. And don't get phased. Thank you very much. The


Hong Kong's currency has opened higher as well. Oil prices have also


taken a bit of a battering after all of the volatility in stock markets


that we have seen. That is because of a slowdown in China, the world's


second is consumer of oil. Crude prices are down. Take a look at this


chart as it shows a dramatic slide below $34 a barrel. That us take a


look at where they are trading right now. We are seeing a bit of a


recovery this morning in Asia. They are higher by about 2%. Wire have a


tumbled so much in recent months and these there any chance they will


rebound. It is a supply driven price . Russia, the US, and Canada has


increased production. It is largely driven by the Saudi policy tried to


force the hand of these external produces to win back market share.


So there is the political motivations


prices fall and the strengthening US dollar. What do these lower oil


prices mean the regional economies in Asia? They are coping with this


topping with China slipping, that a man dropping off, this affects Asia


at large. We are also adjusting to an environment where we have to cope


with gradually rising interest rates . It makes it more challenging for a


developing economy. And how long do you see this lasting? I think this


will run through this year at the very least. You will not have the


turnaround coming against his back drop of diplomatic feuding with the


Saudis. I do not see a resolution happening with the conflict of the


two largest exporters and produces. OPEC will compete with them which


they have not faced in the last year. I mentioned China earlier. But


how much do they have to do with all of this because the rejections are


driving the increase in energy and a driving the increase in energy and a


man grows. -- demand growth. Anywhere else in the world this


would be great, but in the case of China it slipping and the


transformation from an export orientated manufacturing economy to


a domestic focused service economy. All of this is hitting at a time


where markets are in turmoil and China, I think, the one big factor


we will have to watch is how they play out. This could be a Black


Friday with all asset prices. More than likely to come into five Lene


dollars up 15% from a year ago. It fall short of expectations. The


global leader in smart phones and memory chips will give a more


detailed earnings report at the end of the month. It has been gadgets


galore at the annual consumer and atomic show in Las Vegas. --


electronic. There has been a huge focus on how to make our smartphones


even smarter. You can extend your phone with those


modules. We have a bunch of 12 done. We are open to a community to


develop new projects. That is it for this edition of Asia


Business Report. Thank you for watching. You watching BBC News. The


top stories this hour. Trading has resumed in China without these


circuit rake safety mechanism that shut down trading


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