Market Report - Asia Eyes Cenbank Moves

Australia is expected to slash interest rates by at least 75 basis points on Tuesday to ward off a looming recession and support growth.

The cut to 4.5 percent would put rates at the lowest level since June 2002, while Europe is also expected to ease this week.

China's purchasing manager's index showed a steep drop in manufacturing due to a sharp decline in export orders.

Despite the economic gloom, some Asian stock markets edged higher, fuelled by investor hopes about central bank efforts to revive economic growth.

Property shares the biggest winners in Hong Kong and China where investors snapped up local developers such as Sino Land, on hopes of better sales.

Despite a promising start to the US holiday retail season, analysts say they expect 2008 to end on a down note with retail sales the slowest in years.

South Korean mobile phone makers Samsung and LG Electronics are already feeling the pinch, with both companies cutting 2009 sale targets as the global downturn spreads.

Category:

News & Politics

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• ntd
• market
• report
• asia
• cenbank
• australia
• china
• export
• stock
• economic