Forex

By Lu Jianxin and Jason Subler SHANGHAI, Nov 29 (Reuters) - A set of data published by the People's Bank of China shows capital inflows jumped in October, reinforcing the government's rationale for a slew of recent monetary tightening steps. The central bank and Chinese institutions spent 519 billion yuan ($78 billion) to absorb foreign exchange flowing into China last month, according to Reuters calculations based on the latest "Position for Forex Purchases" data published over the weekend. That was about double the totals of 290 billion yuan in September and 243 billion yuan in August. October's "Position for Forex Purchases", a key measure reflecting capital inflows into China, was the third largest since the PBOC started to publish the data in the late 1990s, It was just shy of a record 654 billion yuan hit in January 2008 and 525 billion in April 2008, Reuters calculations showed. But deputy PBOC governor Ma Delun played down assumptions that the data would translate into another surge in...

Nov 21 (Reuters) - Kuwait's M2 money supply growth decelerated to 1.9 percent at the end of October, from 2.7 percent in the previous month, the Gulf country's central bank data showed on Sunday. KUWAIT MONEY SUPPLY END-Oct 10 END-Sept 10 END-Oct 09 M1 change yr/yr (pct) 9.8 11.9 6.3 M2 change yr/yr 1.9 2.7 15.7 M2-M1 pct change yr/yr -0.01 0.4 18.3 M3 pct change yr/yr n/a 2.3 15.6 Bank private sector claims yr/yr 1.7 2.0 7.1 KUWAIT C.BANK FOREIGN ASSETS bln dinars 5.408 5.461 5.13 change yr/yr (pct) 5.4 10.4 29.5

Nov 15 - (IFR) - USD/CNY was fixed in Asia on Friday at 6.6239, down slightly from Thursdays 6.6242 fix. The OTC market traded a broad 6.6258-6.6555 range; last at 6.6370. The USD/CNH last at 6.6150/00 as it keeps pace with the USD/CNY moves. The 1-yr NDF last at 6.4670/00. The Shanghai Composite closed down 5.2%. Another China tightening story plus capital controls talk in South Korea set off a nasty round of risk selling across the board in Asia. The SSEC recorded its biggest percentage loss in 14 months as big cap and resource stocks were dumped en masse. The NDF curve was shunted hard to the right as a consequence. On Friday night the 1-yr NDF traded a 6.4550-6.4600 range; the 1-yr was last at 6.4560/10.

By Ritsuko Ando NEW YORK (Reuters) - Cisco Systems Inc <CSCO.O> gave a dismal revenue outlook, stunning investors who had hoped for proof of a recovery in technology spending and sending major tech stocks tumbling. Forecasts for quarterly and yearly revenue fell far short of Wall Street's expectations, a big disappointment for a company known for solid management and seen as a top beneficiary of the surge in global wireless and Internet traffic. Cisco shares tumbled over 14 percent. John Chambers, one of the longest-serving CEOs in Silicon Valley whose views on economic trends are well regarded, cautioned of "short-term challenges" in Europe and public sector spending, as well as weakness among its most important customer segment: service providers. "First of all, our view on this guidance is, we are disappointed," he said. "We are obviously not projecting growth as fast as we would like over the next several quarters," Chambers told analysts on a conference call. That shaky outlook, at a time investors had...

By Aileen Wang and Simon Rabinovitch BEIJING, Nov 11 (Reuters) - Chinese inflation sped to a 25-month high in October and bank lending blew past expectations, highlighting the challenge faced by Beijing as it battles to keep a lid on price pressures. The data left little doubt about why the central bank raised reserve requirements this week and pointed to further tightening steps, from rate rises to yuan appreciation, in coming months. Markets have already moved to factor in tighter policy with five-year Chinese government bond yields rising sharply in expectations of a rate rise before the end of 2010. However, while world markets swooned in October on fears that Chinese tightening would dent demand, evidence of the economy's continued strength and a belief inflation might drive investors to hard assets provided a lift to commodity prices globally. A stabilisation of key growth indicators, notably industrial output and capital spending, should give the government the confidence to take more steps to mop up liquidity, reassured...

WELLINGTON, Nov 4 (Reuters) - New Zealand's unemployment rate fell more than expected in the third quarter as more jobs were created, pointing to a pick up in the economy and a resumption in interest rates rises early next year. Official data on Thursday showed the economy added 23,000 jobs and the work force grew in the three months to September 30, sending the jobless rate to 6.4 percent from a revised 6.9 percent and below economists' forecast for 6.7 percent. The data showed part-time employment rose 2.7 percent, overshadowing a 0.6 percent rise in full-time jobs growth. The data contrasted with a slew of recent weak data, albeit recent surveys have shown improving hiring plans. "I don't think it's a game-changer for the Reserve Bank, but it's a reminder we're going to see rate rises in the early part of 2011, as opposed to the middle of 2011, which is what the market was starting to lean towards," said ANZ-National Bank chief economist...

The greenback came back after the better than estimated US confidence data which showed improvement to 50.2 in October from the revised 48.6 while analysts expected 49.9. However, the dollar remains under pressure before next week's Fed meeting which is expected to witness a second round stimulus to give another boost to the economy that started to show sluggishness. The dollar index rebounded from a low of 77.03 to a high of 77.68 where it is doing attempts to breach resistance at that level. On the other hand, the euro slipped after Mohamed A. El-Erian, Pacific Investment Management Co. Chief Executive Officer, said Greece will fall into default over the coming three years as the announced austerity measures are not sufficient to reduce the budget deficit that reached 13.6% of GDP last year. The announcement raised concerns that despite the improvement seen recently debt woes will cause recovery to falter. Concerning the euro-dollar pair, it is plummeted to a low of 1.3838 below 1.40 key...