In overnight trading Asian markets could not decide what to do, so they did very little. Typical for August out in front of the September storm.
The horrendous consumer confidence number shook the markets a little, but that was replaced with some optimism that the FED might take action to stimulate the economy.
- The Shanghai A shares were up .04% on the day, and the B shares up .23% on the day in rather light trading.
- Web site “All Things Digital” carries an article today highlighting the move of American social and mobile businesses to China. Rising American companies are seeing China as the “3rd” frontier for expansion. They point out nearly all the growth in Fortune 11 companies is coming from China. Incomes are rising in China. Chinese consumers are spending, and the demographics of the internet just keep getting better. 70% of the world’s virtual goods sales in 2010 occurred in Asia.
- George Greig, the manager of the William Blair International Growth Fund, is becoming more cautious on emerging markets as a whole. He sees slowing demand from the US and Europe as having an effect, and is worried about a real estate bubble bursting in China.
- Respected economist Qiao Yongyuan was out with a forecast of 5.4% to 5.6% rise in the CPI, which suggests inflation has peaked and will slow. He sees the PPI peaking at 7.3% in August, and then heading down thanks to lower oil prices and slowing demand for manufactured goods.
- Yan Ji, HSBC analyst, says the Chinese markets will continue to slump for and will continue to head downward in the short term. He believes the Chinese government will continue its tightening regime. The Shanghai composite index has fallen 8.6% this year, and 14% last year.
- Chinese Premier Wen Jiabao said reining in consumer prices remained Beijing’s priority.
- A study recently completed by the Julius Baer Group Ltd. concludes China will have half of Asia’s millionaires by 2015.
- That’s all for today. Hopefully there will be a lot more colorful stuff after we get into September.