From the first paragraph of my Saturday commentary…”I don’t know what it is about that [one hour and change] stretch of time between the Sydney close and the London open…but if there is going to be a down day…it starts right there a large percentage of the time.” Any questions? Actually, both gold and silver got sold off the moment that the New York bullion banks opened for business 6:00 p.m. on Sunday night…which is very early Monday morning in Far East trading. Shortly before 3:00 p.m. in Hong Kong, gold had almost made it back to unchanged…and silver was actually up a couple of cents when the hammer fell. The bottom for gold came very shortly after the London a.m. gold fix at 5:30 New York time…and in silver, shortly after the Comex open. The ‘rally’ in the US dollar that started at the same time as the precious

...

The prognosis for Asia’s financial sector in 2009 is relatively better compared to other emerging economies and also compared to the region’s own experience in 1997-98. Even so, further GDP contractions and asset market corrections are likely as the external environment continues to deteriorate and domestic demand falters.

Asian economies do have fewer mismatches in external debt, lower imbalances in the government, corporate and banking sector balance sheets than their counterparts in emerging Europe, and as a whole used less leverage. Fortunately, ample foreign exchange reserves held by most countries in the region - even before the introduction of Fed swap lines and the IMF’s short-term liquidity facility - fully cover short-term debt and minimize the threat of a financial crisis. Intra-Asia swap agreements are helping provide liquidity to Asian

...

South Korean hopes for lower interest rates have been significantly reduced by the latest government figures showing that inflation surged to a seven-year-high last month on rising commodity prices and the weaker won.Consumer prices rose 4.9 per cent in May from a year earlier, after climbing 4.4 per cent in April, well above the Bank of Korea’s target range of between 2.5 per cent and 3.5 per cent.The weaker won – it has depreciated more than 10 per cent against the dollar this year – is adding to pressure on policymakers, who are struggling to tame inflation as record-high oil prices dent economic growth. South Korea is the world’s fifth-largest importer of crude oil. High inflation is dampening consumer spending in Asia’s fourth-largest economy, although the country is holding up relatively well due to robust exports. Exports were up ...

South Korea’s exports grew at their fastest pace in more than three years in April, as strong demand from emerging markets and a weaker local currency offset the impact of a US economic slowdown. Exports, which make up about 40 per cent of South Korea’s gross domestic product, shot up 27 per cent last month from a year earlier, exceeding March’s 18.6 per cent rise, according to figures released on Thursday.Diversified markets and export products helped Korea weather cooling demand from the US and Europe, according to the latest data.Exports to the Middle East jumped 43.9 per cent in the first 20 days of April and those to Latin America and China climbed by 28.5 per cent and 17.9 per cent respectively, while shipments to the US and Europe fell by 0.9 per cent and 2.5 per cent respectively.The strong rise in exports comes ...

South Korea’s economy grew at its slowest pace in more than three years in the first quarter of 2008 as domestic demand cooled, increasing the prospects of a near-term rate cut by the central bank. The economy expanded 0.7 per cent from the previous quarter, when it grew 1.6 per cent, the Bank of Korea said on Friday. Year on year, growth was 5.7 per cent, euqal to the rate in the previous quarter. Rising fuel costs combined with a deteriorating outlook for exports prompted companies to reduce investment, while record household debt is sapping consumer buying power.The near-term outlook does not seem to be too positive with the government expecting exports, which constitute 40 per cent of GDP in what is Asia’s fourth-largest economy, to slow in coming months as the global economy cools.Domestic demand, which includes private and corporate ...

Consumer prices accelerated slightly in March even as industrial production, investment and consumption are weakening. According to the National Statistics Office (NSO), consumer prices rose 3.9 percent in March over March 2007, up from a 3.6 percent gain in February, as surging crude oil and other international raw material prices raised costs of goods and services in Korea. Seasonally adjusted inflation rose 0.9 percent from a month earlier, the largest increase since January 2005 when the month-on-month inflation jumped 1 percent. The 3.9 percent year-on-year growth is above the Bank of Korea's target range of 2.5 percent to 3.5 percent. The government is committed to trying to contain rises in consumer prices to below 3.3 percent this year.Consumers felt the inflation burden more heavily last month since the cost of living index, consisting of food and other daily necessities, increased ...

South Korea's inflation accelerated in January to its haighest level in more than three years as costs of industrial goods and fuel rose following a surge in crude oil prices. The consumer price index rose at an annual 3.9 percent rate, as compared with a 3.6 percent increase in December according to data released by the statistics office today. The increase was the largest since September 2004. month on month prices were up 0.5 percent in January from December. Bank of Korea Governor Lee Seong Tae said recently that inflation is expected to accelerate even as the risk of a U.S. recession increases.According to the central bank half yearly economic outloook released in December consumer price inflation is expected to accelerate to 3.3 percent in 2008 from 2.5 percent in 2007. The central bank ...

South Korean exports in January grew more than expected in spite of a slowing US economy but firmer oil prices pumped the trade deficit up to the biggest in 11 years, data showed on Friday, dealing a blow to the won. Exports jumped 17.0 per cent led by oil products, flat-screen panels, machinery and mobile phone handsets, the Commerce Ministry data showed. But a larger 31.5 per cent rise in imports – led by crude oil and topping market expectations for a 24.5 per cent gain – pushed the trade deficit up to its widest since early 1997, forcing the won to give up gains and weaken against the dollar. South Korea’s longstanding efforts to diversify its export markets away from the US into emerging economies had been helping Korea maintain strong sales abroad until now, despite growing troubles in the US economy. ...

South Korea’s economy grew faster than expected in the final quarter of 2007, driven by increased corporate investment and a recovery in domestic consumption, the Bank of Korea said today. Korea's gross domestic product rose a seasonably adjusted 1.5 per cent in the October-December period, Up from 1.3 per cent in the previous quarter.The economy expanded 5.5 per cent from a year earlier, the fastest pace in almost two years.The robust growth was propelled by stronger corporate spending with corporate investment in factories surging 4.4 per cent in the last quarter, reversing the third quarter’s drop. Increasing consumption also contributed to economic growth with private consumption rising 1.1 per cent.Exports remained resilient in the final three months of 2007 thanks to strong demand from China. Exports jumped 7.3 per cent, accelerating from a 1.5 per cent growth in the third quarter. It was the biggest increase ...

In Bloomberg today:South Korea's Household Debt Grows at Fastest Pace in 5 MonthsBy Kim KyoungwhaAug. 8 (Bloomberg) -- South Korea's household debt grew at the fastest pace in five months in July, increasing pressure on the central bank to raise interest rates for a second time this year.Lending by commercial banks to households surged 1.77 trillion won ($1.9 billion) from the previous month, the biggest rise since February, the Bank of Korea said in Seoul today. The gain was more than double a 776 billion won increase in June.A resurgence in household borrowing may persuade central bank Governor Lee Seong Tae and his board to increase the benchmark interest rate from a six-year high. Policy makers raised the key rate to 4.75 percent last month on concern a jump in lending may spur inflation as economic growth accelerates....