Good morning Asia! Here’s what you need to know:
- Japan’s tertiary index is released at 7:50 PM ET. The index measures 13 different industries across the country for growth. Month-over-month growth is expected at 0.8%.
- The head of Australia’s Treasury has suggested any move to reduce the value of the Aussie dollar against the U.S. dollar could create hyperinflation in Australia. The comment comes as the Australian dollar sits just below parity with the U.S.
- Major Chinese investors are preparing for the IPO of AIA, the Asian arm of AIG. China Investment Corp. and Ping An are planning substantial share purchases of what could rise to a $20 billion share deal.
- China has warned about the future of its rare earth metal reserves, saying they may only last 15 to 20 years. Last month, China was rumoured to have cut off the supply of rare earth metals to Japan during a diplomatic spat between the two countries. Check out a fantastic overview of China’s grip on rare earth metals >
- India is launching its own diamond exchange in a bid to challenge the traditional centres in Europe and Israel. The Bharat Diamond Bourse’s executives intend to make Mumbai the centre of the world’s diamond trade.
- Iran brokered deals that established the new government in Iraq, according to The Guardian. The deal will concern U.S. officials, and non-Shia allies in the region, that Iran’s power is continuing to grow. Here are the threats the U.S. Air Force is really worried about >
- Cotton prices have risen to their highest levels since just after the Civil War in the U.S. The rise is being blamed on bad crops and a general rise in demand for commodities.