China cuts interest on loans for 1 year and 5 year Japan’s imports set a new record

2022-01-20T17:48:00
Asia Oil stock markets
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China cuts interest on loans for 1 year and 5 year Japan’s imports set a new record

China cuts interest on loans for 1 year and 5 year Japan’s imports set a new record: China and Japan have unveiled some economic data, some of which supported stock markets in Asia.

Oil continues to rise after breaking the highest level recorded since October 2014. 

Evest follows market developments in the following report.

Topics:

Japan’s exports rise and imports set a new record

A rise in imports

Oil keeps rising

Electronic Trading on the New York Mercantile Exchange

The People’s Bank of China cuts interest rates on loans for 1 year and 5 year

 

 

Japan’s exports rise and imports set a new record

Japanese exports rose by 17.5% in December 2021 compared with the same month of the previous year, to 7.881 trillion yen ($68.87 billion),
and import volumes jumped to record levels, according to the country’s Ministry of Finance.

Exports rose for the tenth consecutive month, supported by strong demand for steel,
automobile and semiconductor equipment in major export markets, as well as some alleviating of supply chain problems.

while export growth rates slowed compared to November at 20.5%.

Experts predicted that Japanese exports would increase in December 2021 by an average of 16%, according to Trading Economics.

Exports of Japanese machine-building equipment jumped by 17.6%, semiconductors – by 19.4%, and transport – by 10.2%. Automobile exports rose by 15.9%.

In December, exports to China grew by 10.8%, to the United States – by 22.1%, to Hong Kong – by 8.8%,
to Taiwan – by 31.7%, to South Korea – by 13.7%, to Germany – by 14.1%, and to Australia – by 52.3%.

Imports jumped 41.1% to a record 8.464 trillion yen.

 

A rise in imports

A rise in imports was observed after the results of the 11th consecutive month, with growth in November reaching 43.8%.

Analysts forecast a 42.8% increase in imports in December.

Purchases of metal-fuel abroad rose by 121.9% last month, including gasoline – by 116.6%, and liquefied natural gas – by 100.5%.

Imports from China increased by 20.5%, from Taiwan – by 55.1%,
from South Korea – by 29.5%, from the United States – by 39.6%, from Germany – by 14.1%, from Australia – by 95.7%.

Japan’s foreign trade deficit was 582.36-billion-yen last month, compared to 955.6 billion yen in November and a surplus of 780.28 billion yen in December 2020.

The negative balance of Japan’s foreign trade balance for the whole of 2021 was 1.472 trillion yen, compared with a surplus of 388.29 billion yen in 2020.

Last year’s exports grew by 21.5%, and imports – by 24.3%.

Oil keeps rising

Oil prices changed slightly in Thursday’s trading after rising to their highest level since October 2014 following the results of the previous session.

Data released by the American Petroleum Institute (API) on Wednesday showed that US oil inventories increased by 1.404 million barrels
last week after declining by 1.077 million barrels in the previous week.

The country’s Department of Energy will release official stock statements in the United States today, Thursday.

On Wednesday, US President Joe Biden told reporters that his administration would continue to try to reduce oil prices.

“We will increase the oil supply.

However, it will be difficult to do so,” he said.

The cost of March Brent oil futures on the London Stock Exchange Futures is $88.36 per barrel on Thursday,
$0.08 (0.09%) lower than the closing price of the previous session.

As a result of Wednesday’s trading, these futures rose by $0.93 (1.1%) to $88.44 per barrel.

Electronic Trading on the New York Mercantile Exchange

The price of West Texas Intermediate oil futures for February in electronic trading on the New York Mercantile Exchange (NYMEX)
at this time is $87.09 per barrel, $0.13 (0.15%) higher than the final value of Wednesday’s session.

The day before, these futures rose by $1.53 (1.8%) – to $89.96 per barrel.

Brent and West Texas Intermediate ended Wednesday’s trading at their highest levels since October 2014.

West Texas Intermediate’s futures for February expire at the end of the session on Thursday.

The price of the most-traded West Texas Intermediate crude futures in March fell by $0.04 (0.05%) to $85.75 a barrel.

On Wednesday, the market was supported by the International Energy Agency (IEA) forecast to increase global demand in 2022.

In addition, concerns about a possible decline in supply from the Middle East ,
following the Tuesday-Wednesday-night explosion of the Kirkuk-Ceyhan pipeline linking Iraq and Turkey facilitated a rise in the market.

The Kirkuk-Ceyhan pipeline, with a capacity of some 450 thousand barrels of oil per day, was decommissioned due to an explosion but resumed on Wednesday.

On Wednesday, the International Energy Agency (IEA) raised its forecast for world oil demand growth in 2022 by 200 thousand barrels per day to 3.3 million barrels per day.

According to the Agency, global demand increased by 5.5 million barrels per day in 2021,
an increase of 200 thousand barrels per day over previous projections. 

According to analysts, in 2021, oil demand was 96.4 million barrels per day, and in 2022 – 99.7 million barrels per day.

 

The People’s Bank of China cuts interest rates on loans for 1 year and 5 year

The People’s Bank of China (PBOC, the country’s central bank) cuts loan prime rates (Loan Prime Rates, LPR) for 1-year and 5-year.

The annual LPR was cut for the second month in a row – to 3.7% per year from 3.8%. In December, this rate was cut for the first time in 20 months.

The National Bank of Kuwait said that the interest rate on five-year loans fell to 4.6% from 4.65% on Thursday.

On Monday, the National Bank of Kuwait reduced the one-year loan interest rate under the Medium-Term Lending Program (MLF) – to 2.85% per annum from 2.95%,
plus the seven-day reverse buybacks interest rate – to 2.1% from 2.2%.

China’s Vice President of the Central Bank, Liu Zhu Xiang, said in a press release on Tuesday that the People’s Bank of China ,
intends to act early and more decisively to help the country’s authorities stabilize the economy in 2022.

Liu Zhu Xiang said that the National Bank of China planned to encourage domestic financial institutions ,
to increase lending and would use a variety of monetary policy instruments to maintain adequate liquidity.

LPR became the new standard in August 2019 following the reform of the Central Bank of China’s interest rate.

As of 2020, the National Bank of China requires banks to focus on LPR when setting interest rates on new loans.

In 2020, annual LPR was reduced by 30 basis points, for five years – by 15 basis points.

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