World Market Review and Indian Stock Market Analysis by Nirmal Bang
Most Asian stock markets rose as lower U. S. jobless claims and a higher forecast for global oil demand from the International Energy Agency offset slower? than estimated growth in Japan's economy. Japan's economy unexpectedly grew less than initially estimated in the second quarter as companies cut spending and stockpiles fell. GDP expanded at an annual 2.3% pace in the three months ended June 30, slower than the 3.7% reported last month, the Cabinet Office said today in Tokyo. Economists surveyed by Bloomberg News forecast the figure to be unchanged from the preliminary estimate. China's industrial production grew at a faster pace in August, signaling a strengthening recovery in the world's third? biggest economy. Output gained 12.3% from a year earlier, after climbing 10.8% in July, the statistics bureau said at a briefing in Beijing today. That compared with the 11.8% median estimate of 15 economists surveyed by Bloomberg News.
China's new lending unexpectedly increased in August and money supply rose by a record, fueling the nation's recovery from the slowest economic expansion in almost a decade. Banks extended 410.4 bn yuan ($60.1 bn) of local? currency loans, up from 355.9 bn yuan in July and 271.54 bn yuan a year ago, the People's Bank of China said today on its Web site. M2, the broadest measure of money supply, rose 28.53%, the bank also said.
BoE has left the key rate unchanged at 0.5% and will continue with its asset purchase programme worth 175 bn pounds. Codelco, the world's largest copper producer, will boost output for the first time in five years as an $11 bn investment program revamps aging mines. Production will increase by "at least" 120,000 metric tons, or about 8% more than last year's 1.55 mn tons, as the company produces for a full year at the Gabriela Mistral mine, Santiago Gonzalez, Chilean Mining Minister and chairman of state? owned Codelco, said in an interview.
In India the WPI fell for the 13th successive week though the drop was lower at 0.12% for the week ended August 29 against 0.21% decline in the week before, a release by the commerce ministry on Thursday showed.
Today IIP data will be released and it is expected at 7% according to Bloomberg survey.
