Asia and South Pacific June 2005

• Australia’s unemployment rate for April remained unchanged at 5.1 percent, although that figure was 0.5 percent lower than the April 2004 rate.
  
  
• The Feb. 1 to April 30 jobless rate for Hong Kong fell 0.2 percent to 5.9 percent, its lowest level in almost four years. The rate is 1.2 percent lower than the year-ago rate. In the short-term, the entry of new graduates in the next few months is expected to boost labor numbers. The effect of such an increase on the labor market will depend on the overall economic performance and, in particular, the job creation capacity in the corporate sector, said an unnamed government spokesman in a press release.
  
  
• Preliminary data showed a 0.6 percent increase in Japan’s first-quarter GDP compared to Q4 2004.
  
  
• Singapore’s GDP for the first quarter rose 3.2 percent compared to the previous quarter and 13.4 percent compared to the same quarter in 2004.
  
  
• Japan’s trade surplus for April again fell from 2004 totals — the third drop in four months in 2005 bringing up concerns about the country’s ability to sustain its surprising first-quarter growth. Although the 10.4-percent decline from April 2004 totals was less than analysts expected, economists are concerned exports to major areas such as the U.S. and elsewhere in Asia are slower than expected.
  
  
• In its monthly report for May, the Bank of Japan maintained its stance on the country’s economy, saying it was still in a recovery trend, although adjustments were still being made to inventories of electronic goods. The BOJ also said industrial production was gradually rising.
  
  
• The South Korean central bank said it would not add to its foreign exchange reserves, saying it did not have sufficient reserves to secure its sovereign credibility. The country’s reserves already stand at $207 billion, the fourth largest total in the world.
  
  
• “Emerging Asia” — a term referring to China, India, Singapore, Taiwan, Indonesia, Malaysia, the Philippines, and Thailand — had its growth forecast for 2005 reduced by the International Monetary Fund. The IMF did not specifically explain the reason for its reduction from 7 percent to 6.5 percent, but said in a report that export growth would likely slow in the wake of decreased demand for electronic goods.