Video: Advantages of Operation Twist for Asia

Any long-term advantages for Asia of Operation Twist will depend largely on how the U.S. economy responds to the effects of such a monetary tool. Asian economies are heavily export oriented so it is vital that the rest of the world and particularly the U.S. have healthy economies and continue to seek buying what Asia has to offer. Asian economies are trying to shift to a stronger domestic focus but such a transformation is set to take some time yet. In this video Andrew Robinson, Correspondent for Saxo Capital Markets, takes a look at the Asian expectations for Operation Twist.

He also comments on increased market speculation about the likelihood that the Bank of Japan will intervene to weaken the Yen. The strong safe haven currency has particularly hurt Japanese exporters, along with the slowing of global growth, which the latest trade data confirms. Along with a deccline in exports, the August deficit seems to furthermore be the cause of increased imports due to rebuilding and restructuring after the tsunami in March.

Elsewhere in Asia market focus is on Singapore's inflation and hopes that a near-term peak has been reached so authorities can focus on measures to help rebuild the economy rather than fight inflation. Markets are looking for such indications from the next Monetary Authority of Singapore meeting, most likely to occur half way through October.

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