Japan’s companies stockpile of cash reached a record in the first quarter as they poured investment abroad, underscoring Prime Minister Shinzo Abe’s challenge to boost the nation’s investment and wages.
Chinese Premier Li Keqiang told German business leaders his country is confronted by “huge challenges” as it seeks 7 percent annual growth this decade, down from more than 10 percent in the previous 10 years.
J. Kyle Bass, whose Hayman Advisors LP made $500 million amid the U.S. subprime crisis, said the Bank of Japan will have to “dramatically” increase bond-buying efforts that have been “overwhelmed” by investors selling.
The drop in China’s exports caused by Europe’s debt crisis may affect whether Moody’s Investors Service raises the nation’s sovereign debt rating, said Tom Byrne, a senior vice president at the company.
South Korea’s economic fundamentals are “very sound,” with their strength coming from foreign- exchange reserves, Moody’s Investors Service Senior Vice- President Tom Byrne said. Asian bonds are regarded as a “safe haven” for global investors because of their fiscal strength, Byrne said at a conference in Seoul today.
Japan may “at some point” reach a fiscal “tipping point” if investors lose confidence in the soundness of government finances and demand a risk premium on the nation’s bonds, Moody’s Investors Service said.
The escalation in violence stemming from a political stand-off in Thailand threatens to undermine investor confidence and see the nation’s economy slip behind neighbors that are helping Asia lead the global recovery.
China’s local-government financing vehicles won’t create a “severe” problem based on initial analysis by Moody’s Investors Service, said Tom Byrne, a senior vice president of the rating company’s sovereign risk unit.