Thursday, the Indonesian central bank decision to hike interest rates was the major news from Asia.
In a widely expected move, the Bank Indonesia raised its key interest rate by 25 basis points to 9.25% for the fifth month in a row to fight inflation, which has remained at double-digit level since May 2008. The central bank said in a statement that the decision was taken to support the stability of the Indonesian economy and financial system and specifically to maintain the medium-term outlook for the inflation target.
Malaysia recorded its 129th consecutive month of trade surplus since November 1997. The Trade Ministry announced that trade surplus stood at MYR14.5 billion in July, larger than the MYR12.97 billion recorded in June. Economists were looking for a surplus of MYR2 billion for July. Exports surged 25.4% year-on-year to reach a new high of MYR63.36 billion, while imports rose14.8%, totaling MYR48.85 billion in July.
In other news, Japan's Ministry of Finance reported that foreigners purchased a net 131.0 billion yen worth of Japanese stocks for the week of August 24 - 30. That follows foreigners having been net sellers of a revised 215.1 billion yen in stocks the week before. Foreigners were buyers of a net 439.4 billion yen worth of Japan bonds and notes for the week.
In India, the government reportedly eased its ban on exports of non-basmati rice and allowed shipments of premium aromatic, long grained variety from next month. On the data front, official reports said direct tax collections jumped 38.3% in the first five months of the current fiscal year.
According to data published by Department of Economic Affairs, Ministry of Finance, India's external as at the end of March 2008 amounted to $221.2 billion, reflecting an increase of 30.4% over the previous year. The escalation in external debt during the year was mainly due to increase in external commercial borrowings, short-term debt and depreciation of dollar.
India's inflation, based on the wholesale price index fell to 12.34% during the week ended August 23 from 12.40% recorded during the week ended August 16, the Ministry of Commerce Industry said in a report. A year ago, the annual rate of inflation stood at 3.94% during the corresponding week. Economists had expected inflation to reach 12.44%.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.