Author: Business News Asia

SEOUL – Despite a weak trade and consumption, South Korea’s economy expanded in the first three months of the year, thanks to increased investment in construction. Official data released by the Bank of Korea, the country’s central bank, showed that South Korea’s economy expanded 0.8 percent in the January-March period from 0.3 percent growth posted in the previous quarter. The Q1 growth was in line with the estimates of the central bank released in April. On a yearly basis, however, the country’s economic growth slowed to 2.5 percent from the 2.7 percent growth posted in the fourth quarter of 2015.…

China’s Shanghai Securities News has reported that the Shanghai Insurance Exchange, which has been planned since 2011, could finally get approval from the China Insurance Regulatory Commission this year. If the approval pushes through, the insurance exchange will further boost Shanghai’s aim of becoming an international financial center because the exchange will encourage insurance pricing transparency and centralised transactions. The plan for the Shanghai Insurance Exchange was first announced in 2011. The exchange will offer risk securitisation products, catastrophe bonds and insurance derivates. In other insurance news, Japan’s second largest life insurer, Nippon Life Insurance Co, is reportedly negotiating with…

TOKYO – Philippine President Benigno Aquino III announced that his country is still studying the proposal to join the China-led Asian Infrastructure Investment Bank (AIIB) even as the country already signed a non-binding agreement to become the bank’s founding shareholder. Aquino, who is in Japan for a state visit, told reporters that he wants to make sure that the China-led bank will not be affected by the ongoing conflicts between China and other Asian countries. “We are studying the invitation to join the AIIB and we have to determine whether it is a net positive or not,” Aquino stressed. Last…

Fruitday.com, one of China’s leading online fresh fruits providers, received USD70m worth of series C financing from B2C e-commerce giant JD.com. According to Fruitday.com, the new investment will be used for its basic construction, team construction, nationwide business expansion, and upstream supply chain construction. JD’s investment provides Fruitday.com with logistics support to help expand its market share across the country. Fruitday.com was founded in 2009. Shen Haoyu, chief executive officer of JD, said that e-commerce will become a major channel for fruit and fresh food consumption in China in coming years. The investment in Fruitday.com will benefit JD’s in-depth development…

NORTH CAROLINA – Wilmington native Todd J. Vasos has been elected to the position of chief executive officer of Dollar General Corp, a US chain of variety stores. Dollar General’s board of directors also elected Vasos, current chief operating officer, to the board of directors, the PortCityDaily news reported. Dollar General’s lead director, Mike Calbert, said Vasos’ appointment as CEO will ensure the continuation of both the leadership and strategy that have made Dollar General a retail powerhouse. For his part, Vasos said he is committed to build on the success of Rick Dreiling, former chairman and CEO, who announced…

MYANMAR – The government of Myanmar plans to further open up its domestic insurance market following the issuance of temporary licenses to three foreign insurers, allowing them to operate at the Thilawa special economic zones. Deputy finance minister U Maung Maung Thein said in a news conference that the temporary licenses are the first step to gradually opening up the market to more foreign investment. However, U Maung Maung Thien did not provide a timeline for the planned opening up of the domestic insurance market. Myanmar has already made a set of criteria as basis for granting a license to…

Malaysia’s Trade and Industry Ministry has reported that the country’s approved investments in the primary, services and manufacturing sector for Q1 reached MYR57.4bn (USD15.5bn), an 18.8 percent rise over the same period last year. Manufacturing tops the list with MYR33.6bn (USD9bn) worth of investments during the period, followed by services sector at MYR22.3bn (USD6bn) and primary sector at MYR1.5bn (USD400m). International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the rise in Malaysia’s approved investments comes even as the World Bank has lowered its growth forecast for the economy this year. He said the growth reflects the fait of…

TAIPEI, TAIWAN – The Taiwan Stock Exchange (TWSE) announced on Monday that the securities net overbought position by foreign investors was TWD5.56 billion (USD180 millon) during the week of May 25 – May 29. The overbought position represented the difference between TWD163.53 billion (USD5.3 billion) securities bought and TWD157.97 billion (USD5.12 billion) securities sold, the TWSE said in a statement posted on its website. The week’s overbought position raised the accumulated net overbought position by foreign investors from January to May 29 of this year to TWD249.23 billion (USD8.08 billion), representing the different between TWD 2,768.20 billion securities bought and…

INDONESIA – American financial services firm Standard and Poor’s (S&P) revised Indonesia’s rating outlook from Stable to Positive and affirmed the rating at BB+. The positive outlook reflects the possibility that S&P could raise ratings on Indonesia over the next 12 months. The main sovereign analyst for S&P Indonesia, Kyran A. Curry, mentioned that the main factor supporting this decision is improvements in Indonesia’s policy framework which have enhanced monetary and financial sector management. Greater policy effectiveness and predictability have resulted in expanded fiscal and reserve buffers and improved Indonesia’s external resilience. The Governor of Bank Indonesia, Agus D.W. Martowardojo…

BAHRAIN – One of the top financial institutions in the Middle East, Mubasher Financial Services BSC, has announced the opening of its new state of the art office in Bahrain, the Bahrain Bourse said. Officially opened on 26 May, the new office of Mubasher Financial Services BSC was inaugurated by Shaikh Khalifa Ebrahim Al Khalifa, CEO of the Bahrain Bourse, and Mohammed R. AlBallaa, Chairman of Mubasher Financial Services. The office, which relocates from the Diplomatic area, is now located in the suburban Seef District neighbourhood of Manama, which is fast developing into a business hub for local and multinational…

MALAYSIA – Malaysian commuters will get to ride the electric bus at Bandar Sunway for free for two months, said Prime Minister Datuk Seri Najib Razak. Najib made the pronouncement about the free ride for two months during the launching of Bus Rapid Transit, which will ply a 5.4-kilometer route in and around Bandar Sunway. The service has seven stations — Sunway-Setia Jaya, Mentari, Sunway Lagoon, SunMed, SunU-Monash, South Quay, USJ7, and BRT Sunway Complex. “Realistically, a country’s level of development is determined based on the transportation system. As a result, this integrated transportation system is introduced to the commuters,”…

SYDNEY, AUSTRALIA – Australia’s largest department store group Myer is shutting down an outlet in Top Ryde City shopping center in Sydney as part of a revamp launched by newly appointed CEO Richard Umbers. Myer will also close three stand-alone specialty stores in Melbourne, marking the first closures since Umbers took over as CEO in March. The Top Ryde store will be closed by late July, said Myer in an announcement to the Australian Securities Exchange. The three stand-alone stores will be closed in August. Downsizing Myer’s store network is part of Umber’s overall goal to revive sales and earnings…

Japanese cosmetics and other goods will soon be sold on Alibaba as the Chinese e-commerce giant signed a collaboration agreement with Yahoo Japan. Under the deal, Alibaba will invite about 1,000 registered shops and brands to sell on its platform, Tmall, for Chinese consumers. The collaboration was made as Japanese products have become extremely popular in China, said Alibaba’s CEO Zhang Yong. A report published by a Chinese-language paper said Alibaba will cut its registration fee for Japanese shops and brands by 20% as part of the collaboration agreement. The collaboration is expected to generate profits of JPY50 trillion (USD403…

HONG KONG – JP Morgan Chase & Co has named David Lau as head of global investment banking for Hong Kong, online financial publications reported Monday. Lau will also keep his responsiblities in China as corporate finance at JP Morgan even as he replaces Catherine Leung in Hong Kong. The bank also announced the appointment of Esther Yeh as head of global investment banking for Taiwan and Ling Zhang as managing director and head of China health care. – BusinessNewsAsia.com

BEIJING, CHINA – The second Maldives Investment Forum will be held in Beijing in September this year, a local newspaper in Maldives reported. The country’s Economic Minister Mohamed Saeed the investment forum is the best place for local businesses to interact with international markets, Haveeru, the longest serving daily newspaper in the Maldives, reported. The first Maldives Investment Forum was held in Singapore last year. The investment forum provides international investors a view of the key investment opportunities in the country. – BusinessNewsAsia.com

MANILA, PHILIPPINES – Thirty-eight Filipina beauties will vie for the crown of Miss Earth-Philippines 2015 at the coronation night set today. Among the early favorites are Police Inspector Sofia Deliu of Baguio City, Manila’s pride Angelia Ong and frontrunner Chanel Olive Thomas of San Antonio, Nueva Ecija. Thomas is the ex-girlfriend of Filipino actor Jake Cuenca. Thomas already garnered 72 points based on the challenges scoresheets. She was also named Miss Friendship and garnered the bronze medal in the evening gown competition. Early winners the pre-pageant activities are the following: Evening Gown Competition winners: Gold – Miss Iloilo City Silver…

MANILA, PHILIPPINES – The Philippine government has confirmed that President Benigno S. Aquino III will embark on a four-day state visit to Japan from June 2 to 5 next week to meet with Prime Minister Shinzo Abe. Foreign Affairs Assistant Secretary for Asia and Pacific Affairs Minda Calaguian Cruz said he two leaders are expected to talk about the enhancement of the strategic partnership between the Philippines and Japan, as well as exchange views on recent developments in the region. “The visit is taking place in an auspicious time when we are to celebrate 60 years of diplomatic relations between…

MANILA, PHILIPPINES – The Philippine government announced new appointments of President Benigno Aquino III to various diplomatic and government posts. The new appointess are: Hon. Amable R. Aguiluz V – Special Envoy of the President to the Kingdom of Bahrain Joselito A. Jimeno – Ambassador Extraordinary and Plenipotentiary to Switzerland Leslie J. Baja – Ambassador Extraordinary and Plenipotentiary to the Arab Republic of Egypt Gov. Denis B. Habawel – Chairperson, Regional Peace and Order Council, Cordillera Administrative Region (Department of the Interior and Local Government) Rafael M. Iriarte, Ralph Pastor A. Salazar, Joseph L. Emnas, Fernando L. Zulueta, and Fernando…

MALAYSIA – A report released by Bank Negara Malaysia, the country’s central bank, showed that headline inflation, as measured by the annual percentage change in Consumer Price Index (CPI), increased to 1.8 percent in April from 0.9 percent in March. The report said the rise April’s inflation reflected mainly the impact from the implementation of the Goods and Services Tax (GST) and the abolishment of the Sales and Sales and Services Tax (SST) on 1 April. “The higher price increases were relatively broad-based, with eleven out of the twelve categories of consumer goods and services registering higher rate of inflation in April…

MANILA, PHILIPPINES – Overall business confidence in the Philippines for the second quarter soared to 49.2 percent, up from the 45.2 percent posted in the previous quarter, the Bangko Sentral ng Pilipinas (BSP) said in a statement. “This indicates that more businesses are optimistic about the country’s economic prospects for the second quarter of the year compared to that in the previous quarter,” the statement posted on BSP’s website said. Businessmen who responded to the business sentiment survey cited several factors in their bullish outlook for the second quarter. Among the factors were the robust consumer demand during the secondary…