28 May 2014
Better prospects in China help stocks - BTMU
FXStreet (Barcelona) - Derek Halpenny, European Head of Currency Strategy at the Bank of Tokyo Mitsubishi UFJ, observes the better tone in stocks backed by positive data from China.
Key Quotes
"Asian equity markets are nearly all in positive territory today helped in part by data from China suggesting the economy has stabilised. Industrial profits jumped 10.0% in the current year through to April, compared to 10.1% in March."
"The evidence of economic stability in the data of late from China indicates the government’s 7.5% real GDP growth target is achievable. That has helped sentiment in the region."
"The other major economy in the region – Japan – is also expected to contribute positively to the favourable outlook for growth as the financial markets await further details on ‘Abenomics’ and the third arrow incorporating structural reform. Takeshi Noda, head of the LDP tax panel, today stated that changes were being agreed to corporate taxation in Japan that would include a tax cut."
"The current corporate tax rate of around 35% is one of the highest amongst major developed economies and it would appear there is a consensus on the need for a cut. The tax panel is now deliberating ways to offset any lost revenue."
Key Quotes
"Asian equity markets are nearly all in positive territory today helped in part by data from China suggesting the economy has stabilised. Industrial profits jumped 10.0% in the current year through to April, compared to 10.1% in March."
"The evidence of economic stability in the data of late from China indicates the government’s 7.5% real GDP growth target is achievable. That has helped sentiment in the region."
"The other major economy in the region – Japan – is also expected to contribute positively to the favourable outlook for growth as the financial markets await further details on ‘Abenomics’ and the third arrow incorporating structural reform. Takeshi Noda, head of the LDP tax panel, today stated that changes were being agreed to corporate taxation in Japan that would include a tax cut."
"The current corporate tax rate of around 35% is one of the highest amongst major developed economies and it would appear there is a consensus on the need for a cut. The tax panel is now deliberating ways to offset any lost revenue."