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BOK-Fed policy shift

SEOUL, May 22 (Yonhap) -- South Korea's top central banker said Wednesday that the potential end of the U.S. Federal Reserve's massive monetary easing drive could spark risks from a rise in bond yields, raising the need to brace for impacts of such a policy shift. Speculation is growing that the Fed may slow the pace of its bond purchases this year, which probably will jack up bond yields, causing losses for bond holders such as banks and other financial institutions.

BOJ maintains monetary easing policy, upgrades economic assessment

The Bank of Japan decided Wednesday to maintain its current aggressive monetary easing policy aimed at beating deflation and upgraded the country's economic assessment, at a time when consumption and exports have started to recover, backed by a weakening yen and rising stocks. Lifting the economic assessment for a fifth month in a row, the central bank said "Japan's economy has started picking up," revising upward its description at the previous policy meeting on April 26 saying that it "has stopped weakening and has shown some signs of picking up."

Bernanke's congressional testimony to be studied for any hints of shift on Fed bond purchases

WASHINGTON - When Ben Bernanke testifies about the U.S. economy Wednesday, the Federal Reserve chairman's words will be examined for any clues that the Fed might soon taper — or increase — its support for the economy. The Fed is pursuing an aggressive program of bond purchases to try to keep long-term interest rates down and encourage borrowing and spending. The Fed has said it plans to continue its $85 billion-a-month in Treasury and mortgage bond purchases until the job market improves substantially. The timing of any policy shift remains hazy.

Bank of Japan says no new easing measures

The Bank of Japan on Wednesday held off fresh easing measures, saying after a two-day policy meeting that a continuation of steps introduced last month would help Japan overcome deflation. The central bank said its widely expected decision to stand pat was reached by a unanimous vote by its board. In early April, the bank's new management team -- hand picked by Prime Minister Shinzo Abe -- embarked on a new era of huge asset purchases and massive monetary easing.

Japan logs record-high trade deficit for April

Japan's goods trade deficit expanded to a record 879.9 billion yen for April, marking the 10th straight month of red ink, as the yen's slide continued to push up the cost of fossil fuel imports, while conversely helping exports recover, the government said Wednesday. It is the first time Japan's trade balance has remained in deficit for 10 months since 1979, when the country was hit by the second oil shock, a Finance Ministry official briefing reporters said.

Bank of Canada's Carney says Europe needs big reforms

By Leila Lemghalef MONTREAL (Reuters) - Europe could face a decade of stagnation unless it makes big reforms and it should heed the lessons of Japan, Bank of Canada Governor Mark Carney said on Tuesday as he highlighted Japan's bold moves to bolster growth. In his final speech as Canadian central bank chief before he takes over as governor of the Bank of England on July 1, Carney said Europe's recessionary economy is being held back by fiscal austerity, low confidence and tight credit conditions.

Japan exports disappoint, full benefits of weak yen yet to show

By Tetsushi Kajimoto TOKYO (Reuters) - Japan's exports rose less than expected in April from a year earlier due to weak demand from Europe and China, highlighting the challenges confronting the world's third-biggest economy as policymakers try to engineer a sustained revival. The 3.8 percent annual increase in exports in April was below the median estimate for a 5.9 percent rise and followed a 1.1 percent increase in the year to March.

external debt-Q1 tally

SEOUL, May 22 (Yonhap) -- South Korea's short-term foreign debt declined to its lowest level in more than six years in the first quarter amid the local currency's weakness and smaller trade-related credits, the central bank said Wednesday. The country's short-term external debt totaled US$122.2 billion as of the end of March, down $4.5 billion from three months earlier, according to the Bank of Korea (BOK).

Japan's trade deficit expands 70% in April

Japan's trade deficit expanded a worse-than-expected 70 percent on year to $8.6 billion in April, government data showed Wednesday, as a weaker yen made imports costlier. The monthly trade deficit came to 879.9 billion yen ($8.6 billion), 69.7 percent higher than the year-before deficit of 518.4 billion yen, finance ministry data showed. The deficit was the biggest for the month of April in comparable official data that goes back to 1979 and was also worse than a shortfall of 620 billion yen economists predicted on average in a poll by the Nikkei business daily.

Japan's trade deficit expands 70% in April

Japan's trade deficit expanded a worse-than-expected 70 percent on year to $8.6 billion in April, government data showed Wednesday, as a weaker yen made imports costlier. The monthly trade deficit came to 879.9 billion yen ($8.6 billion), 69.7 percent higher than the year-before deficit of 518.4 billion yen, finance ministry data showed. The deficit was also worse than a shortfall of 620 billion yen economists predicted on average in a poll by the Nikkei business daily. mis/mtp
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