[One-Minute World News] from [BBC NEWS]
[Asia-Pacific]
Page last updated at 03:44 GMT, Tuesday, 29 September 2009 04:44 UK
Japan prices continue record fall
Japan's core consumer prices dropped 2.4% in August year-on-year, the fourth successive month of record falls.
Official figures showed core prices, which exclude those of volatile fresh food, fell for a sixth month in a row.
The record fall for August was due to lower petrol and other energy costs as well as weak domestic demand.
Japan, the world's second largest economy, experienced a prolonged period of deflation in the 1990s, commonly referred to as "the lost decade".
Lower prices may appear to be a good thing, but deflation can hamper growth by depressing company profits and causing consumers to postpone purchases, leading to production and wage cuts. It can also increase debt burdens.
The deflation comes despite recent signs of an improvement in the Japanese economy, which returned to positive growth in the second quarter of 2009, exiting a severe year-long recession.
Not to worry?
The central bank has expressed confidence that low interest rates and the stimulus packages it has already implemented will prevent deflation taking hold again.
Analysts are not so sure.
Several have said that although the impact of last summer's spike in the oil price will lessen towards the end of the year, they expect further falls in prices.
"Reflecting stagnant retail sales, falls in prices are spreading more broadly than we had expected," said Susumu Kato, chief economist at Calyon Securities.
"There's a chance that deflation might continue longer than expected."
Few economists expect falls in prices to accelerate sharply but weak domestic demand is likely to keep up the deflationary pressure.
The Bank of Japan has already forecast deflation to last until the year to March 2011 and is expected to extend its deflation forecast by another year in its next set of forecasts due out in late October.
Separately, the Japanese Finance Minister Hirohisa Fujii said that it is important not to overreact to current foreign exchange moves, which he said are within a natural "margin of error".
The yen surged to an eight-month high against the greenback on Monday.
[Asia-Pacific]
Page last updated at 07:25 GMT, Tuesday, 29 September 2009 08:25 UK
Yen falls from eight-month highs
The yen has weakened from Monday's eight-month highs against the US dollar following comments from Japanese Finance Minister Hirohisa Fujii.
It hit 88.23 to the dollar on Monday after Mr Fujii made comments taken to mean that he was comfortable with the yen's strength.
But on Tuesday, he said the government might intervene in the currency markets if exchange rates made irregular moves.
The yen gave up most of Monday's gains, returning to about 90 to the dollar.
'National interest'
"If [exchange rates] move abnormally, we could take appropriate measures for our national interest," Mr Fujii told a news conference.
Mr Fujii became finance minister last month after the Democratic Party of Japan (DPJ) ended more than 50 years of almost unbroken rule by the Liberal Democratic Party.
"Perhaps [Mr] Fujii didn't realise how much the market would move on his comments after he became finance minister. But now he realises that this isn't such a good thing," said Tokichi Ito at Trust & Custody Services Bank in Tokyo.
Japan has not intervened in the currency markets since March 2004.
[Asia-Pacific]
Page last updated at 03:53 GMT, Tuesday, 29 September 2009 04:53 UK
N Korea constitution bolsters Kim
South Korea's news agency has published excerpts from North Korea's amended constitution.
By Jill McGivering
BBC News
It seems to bolster the position of leader Kim Jong-il amid speculation about his health and growing pressure about the North's nuclear programme.
The constitution was changed in April this year but this is the first time its wording has been seen outside the country.
Political change and shifts in power inside North Korea are guarded secrets.
So it has taken months for details to emerge in the South about changes to the country's constitution.
There is particular interest in the terms used to describe Kim Jong-il, amid months of speculation about his health and possible successor.
For the first time, the constitution refers to him implicitly as "supreme leader".
'Respect'
It also endorses the role of the National Defence Commission - which he chairs - in national and foreign affairs.
And it places more weight on Kim's personal doctrine of "military first".
So as well as strengthening Kim Jong-il's position, the changes could also be designed to boost the status of military.
There has been speculation too about the decision to change the wording about the rights of citizens.
The new constitution says the country "respects" its citizens' human rights, as well as protecting them.
This may be an attempt to show concern about human rights in the face of international condemnation about its rights record.
All this comes as China's premier Wen Jia-bao prepares to visit North Korea next week.
It is part of growing efforts to persuade Pyongyang to rejoin multilateral talks on its nuclear programme.
There have been signs of a softening of the North's usually harsh rhetoric.
But it is still unclear if Pyongyang will accept a return to the six party talks framework - or press for an alternative.
[Asia-Pacific]
Page last updated at 21:39 GMT, Monday, 28 September 2009 22:39 UK
US wants sustained Burma dialogue
The US says its planned dialogue with Burma's military rulers must be part of a "sustained process of interaction".
The State Department says the Burmese leadership has for the first time shown an interest in engaging with the US, and Washington intends to pursue that.
But it says sanctions will remain until there is progress on human rights.
Also on Monday, Burma's Prime Minister, Gen Thein Sein, told the UN General Assembly that sanctions were "unjust" and should be stopped.
Gen Thein Sein - the most senior member of the Burmese government to appear at the UN for nearly 15 years - vowed to take "systematic steps to hold free and fair elections" next year.
'Core concerns'
{{Lifting sanctions now would send the wrong signal }
Kurt Campbell
US Assistant Secretary of State }}
Assistant Secretary of State Kurt Campbell said the US wanted a "sustained process of interaction" with Burma after only sporadic contacts in recent years.
"We intend to begin a direct dialogue with Burmese authorities to lay out the path towards better relations," Campbell was quoted as saying by AFP news agency.
But he said that key reforms were needed.
"Lifting sanctions now would send the wrong signal," he said. "We will tell the Burmese that we will discuss easing sanctions only if they take actions on our core concerns."
He said the US would press for the unconditional release of democracy leader Aung San Suu Kyi, who has spent most of the past two decades under house arrest.
Mr Campbell said the Obama administration has also called on Burma to free all political prisoners and end conflicts with ethnic minorities.
[Asia-Pacific]
Page last updated at 03:44 GMT, Tuesday, 29 September 2009 04:44 UK
Japan prices continue record fall
Japan's core consumer prices dropped 2.4% in August year-on-year, the fourth successive month of record falls.
Official figures showed core prices, which exclude those of volatile fresh food, fell for a sixth month in a row.
The record fall for August was due to lower petrol and other energy costs as well as weak domestic demand.
Japan, the world's second largest economy, experienced a prolonged period of deflation in the 1990s, commonly referred to as "the lost decade".
Lower prices may appear to be a good thing, but deflation can hamper growth by depressing company profits and causing consumers to postpone purchases, leading to production and wage cuts. It can also increase debt burdens.
The deflation comes despite recent signs of an improvement in the Japanese economy, which returned to positive growth in the second quarter of 2009, exiting a severe year-long recession.
Not to worry?
The central bank has expressed confidence that low interest rates and the stimulus packages it has already implemented will prevent deflation taking hold again.
Analysts are not so sure.
Several have said that although the impact of last summer's spike in the oil price will lessen towards the end of the year, they expect further falls in prices.
"Reflecting stagnant retail sales, falls in prices are spreading more broadly than we had expected," said Susumu Kato, chief economist at Calyon Securities.
"There's a chance that deflation might continue longer than expected."
Few economists expect falls in prices to accelerate sharply but weak domestic demand is likely to keep up the deflationary pressure.
The Bank of Japan has already forecast deflation to last until the year to March 2011 and is expected to extend its deflation forecast by another year in its next set of forecasts due out in late October.
Separately, the Japanese Finance Minister Hirohisa Fujii said that it is important not to overreact to current foreign exchange moves, which he said are within a natural "margin of error".
The yen surged to an eight-month high against the greenback on Monday.
[Asia-Pacific]
Page last updated at 07:25 GMT, Tuesday, 29 September 2009 08:25 UK
Yen falls from eight-month highs
The yen has weakened from Monday's eight-month highs against the US dollar following comments from Japanese Finance Minister Hirohisa Fujii.
It hit 88.23 to the dollar on Monday after Mr Fujii made comments taken to mean that he was comfortable with the yen's strength.
But on Tuesday, he said the government might intervene in the currency markets if exchange rates made irregular moves.
The yen gave up most of Monday's gains, returning to about 90 to the dollar.
'National interest'
"If [exchange rates] move abnormally, we could take appropriate measures for our national interest," Mr Fujii told a news conference.
Mr Fujii became finance minister last month after the Democratic Party of Japan (DPJ) ended more than 50 years of almost unbroken rule by the Liberal Democratic Party.
"Perhaps [Mr] Fujii didn't realise how much the market would move on his comments after he became finance minister. But now he realises that this isn't such a good thing," said Tokichi Ito at Trust & Custody Services Bank in Tokyo.
Japan has not intervened in the currency markets since March 2004.
[Asia-Pacific]
Page last updated at 03:53 GMT, Tuesday, 29 September 2009 04:53 UK
N Korea constitution bolsters Kim
South Korea's news agency has published excerpts from North Korea's amended constitution.
By Jill McGivering
BBC News
It seems to bolster the position of leader Kim Jong-il amid speculation about his health and growing pressure about the North's nuclear programme.
The constitution was changed in April this year but this is the first time its wording has been seen outside the country.
Political change and shifts in power inside North Korea are guarded secrets.
So it has taken months for details to emerge in the South about changes to the country's constitution.
There is particular interest in the terms used to describe Kim Jong-il, amid months of speculation about his health and possible successor.
For the first time, the constitution refers to him implicitly as "supreme leader".
'Respect'
It also endorses the role of the National Defence Commission - which he chairs - in national and foreign affairs.
And it places more weight on Kim's personal doctrine of "military first".
So as well as strengthening Kim Jong-il's position, the changes could also be designed to boost the status of military.
There has been speculation too about the decision to change the wording about the rights of citizens.
The new constitution says the country "respects" its citizens' human rights, as well as protecting them.
This may be an attempt to show concern about human rights in the face of international condemnation about its rights record.
All this comes as China's premier Wen Jia-bao prepares to visit North Korea next week.
It is part of growing efforts to persuade Pyongyang to rejoin multilateral talks on its nuclear programme.
There have been signs of a softening of the North's usually harsh rhetoric.
But it is still unclear if Pyongyang will accept a return to the six party talks framework - or press for an alternative.
[Asia-Pacific]
Page last updated at 21:39 GMT, Monday, 28 September 2009 22:39 UK
US wants sustained Burma dialogue
The US says its planned dialogue with Burma's military rulers must be part of a "sustained process of interaction".
The State Department says the Burmese leadership has for the first time shown an interest in engaging with the US, and Washington intends to pursue that.
But it says sanctions will remain until there is progress on human rights.
Also on Monday, Burma's Prime Minister, Gen Thein Sein, told the UN General Assembly that sanctions were "unjust" and should be stopped.
Gen Thein Sein - the most senior member of the Burmese government to appear at the UN for nearly 15 years - vowed to take "systematic steps to hold free and fair elections" next year.
'Core concerns'
{{Lifting sanctions now would send the wrong signal }
Kurt Campbell
US Assistant Secretary of State }}
Assistant Secretary of State Kurt Campbell said the US wanted a "sustained process of interaction" with Burma after only sporadic contacts in recent years.
"We intend to begin a direct dialogue with Burmese authorities to lay out the path towards better relations," Campbell was quoted as saying by AFP news agency.
But he said that key reforms were needed.
"Lifting sanctions now would send the wrong signal," he said. "We will tell the Burmese that we will discuss easing sanctions only if they take actions on our core concerns."
He said the US would press for the unconditional release of democracy leader Aung San Suu Kyi, who has spent most of the past two decades under house arrest.
Mr Campbell said the Obama administration has also called on Burma to free all political prisoners and end conflicts with ethnic minorities.
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