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By Wang Guanqun

BEIJING, March 21 (Xinhuanet) — Regional cooperation and integration is crucial to Asia\’s future development, according to President of Asia Development Bank Haruhiko Kuroda who is attending the China Development Forum 2010 on Sunday.

\”The prospect of regional integration in Asia is promising, particular in East Asia,\” Kuroda told Xinhuanet in an interview on the sideline of the annual forum hosted by Development Research Center of the State Council of China.

\”In the coming five years or more than five years, some developed economies, including the U.S. and European economies, would recover rapidly,\” said Kuroda, \”but their consumption may not increase so rapidly as it used to be.\”

\”That means Asia must rebalance its source of growth from external demand to domestic and regional demand,\” Kuroda said.

\”The regional integration is the key to sustain high growth,\” he said.

In a speech earlier at the forum, Kuroda also said through investing in neighbor countries, China can \”play a leading role\” in promoting regional integration.

He told Xinhuanet that China has played \”an important role in trading and financial cooperation\” in Asia, \”so in coming years, regional cooperation and integration in East Asia will be further enhanced.\”

China has been actively participating in regional integration programs. On Jan. 1, China and the Association of Southeast Asian Nations kicked off their free trade area.

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ROME, March 19 (Xinhua) — The Italian government allocated on Friday 420 million euros through a special decree aimed at supporting the country\’s slow economic recovery.

According to a press release by the government\’s headquarters, 300 million euros will go in incentives to boost internal consumption levels, 70 million euros in fiscal drags for the textile sector and 50 million euros to support the aerospace, naval industry and local television and radio broadcasting.

The stimulus package was presented by Prime Minister Silvio Berlusconi, Economy Minister Giulio Tremonti and Industry Minister Claudio Scajola.

The consumption incentives regard primarily green home technology, cleaner motorbikes and farm machinery purchases. Among other measures, a voucher plan for young people who want broadband Internet access.

The 420 million euro package will boost innovation, environmental sustainability and cut down on the unemployment level in the country that has reached over 8 percent.

Berlusconi praised the decree as an instrument immediately effective that will revamp the economy and help citizens in a critical moment.

\”We are emerging from the crisis, not extremely quickly, but certainly,\” said the premier, who noted that the downturn was global but Italy was performing better than other European countries.

According to most national and international institutes, the Italian economy is today out of recession but faces a slow and uncertain recovery. The national statistics office Istat reported on Friday that industrial turnover rose in January by 2.7 percent compared to December 2009, but that orders fell by 2.8 percent.

In a statement, Scajola said that the stimulus package was essential if Italy planned to reach the target of a 1 to 1.2 percent growth in gross domestic product (GDP) this year.

Given that the 420 million euros package is funded primarily by recovered taxes from abroad, \”it will have a positive, not a negative effect\” on the state\’s balance sheet, Economy Minister Giulio Tremonti guaranteed.

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TOKYO, March 19 (Xinhua) — Japan\’s department store sales fell 5.4 percent in February from a year earlier, marking the 24th straight year-on-year drop, the Japan Department Stores Association (JDSA) said on Friday.

Sales in the reporting month came to 436.4 billion yen (4.82 billion U.S. dollars) although the industry body said that the three-month moving average for sales is still on an upward trend.

According to JDSA, whilst consumers remain somewhat thrifty amid a harsh economic climate, sales are recovering at a moderate but consistent pace.

Sales of imported goods and jewelry have improved, thanks to the government\’s economic stimulus measures, stabilizing stock prices and improving corporate profits, JSDA said.

Including sales at stores that were opened within the past year, department store revenue fell 7.1 percent on year in February, having posted a drop of 7 percent in January, said the industry body.

Combined sales at the 27 department stores surveyed in the Tokyo Metropolitan area in the reporting month fell 6.5 percent from a year earlier to 107.0 billion yen (1.18 billion U.S. dollars), marking a 24th consecutive month of decline.

Japanese department stores got a boost from tourists however in February, thanks in part to the Lunar New Year, with sales surging 220.5 percent from a year earlier, following a 24.8 percent rise in January, JDSA said, noting that these figures were based on a smaller sample of 41 department stores surveyed.

Typically, the Japan Department Stores Association compiles data from 86 companies running 269 department stores that have been open for at least a year prior to the survey being conducted.

JDSA adjusts its data to facilitate comparisons on a same-store basis.

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LIMA, March 18 (Xinhua) — Peru will register the second highest economic growth rate in Latin America this year, the Latin American Consensus Forecast said on Thursday.

The international consultancy estimated that Peru\’s economy will grow by 4.9 percent in 2010, surpassed only by Brazil, with a 5.5 percent growth rate.

The forecast marks an improvement over the 4.8 percent growth rate the consultancy had previously predicted in a February report.

Peru is also expected to post the lowest inflation rate in the region in 2010 and 2011, with 2.2 percent and 2.5 percent respectively.

The consultancy believed that Peru\’s economic situation will not change much in 2011, and estimated that its economy will expand by 4.8 percent in that year.

Related:

Peru expects building industry to grow 10% in 2010

LIMA, March 11 (Xinhua) — Peru expects its building industry to grow by 10 percent this year, the country\’s housing, construction and sanitation ministry said on Thursday.

It would be an increase of almost 4 percentage points over last year when the building industry posted a 6.14-percent growth rate despite the global financial crisis.? Full story

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TOKYO, March 18 (Xinhua) — Japan\’s economy is picking up and economic conditions are likely to continue improving, said the Bank of Japan (BOJ) in a report on Thursday.

However Japan\’s central bank maintains that there is \”not yet sufficient momentum to support a self-sustaining recovery in domestic private demand,\” although on the whole exports and production have been increasing.

Private consumption, which accounts for roughly 60 percent of Japan\’s economy, is picking up, said the BOJ, mainly due to policy measures, despite the continued severe employment and income situation.

Meanwhile, compared with last month, stock prices have risen, while the yen\’s exchange rate against the U.S. dollar and long- term interest rates have remained at more or less the same levels, the BOJ indicated.

In broad terms the financial environment, with some lingering severity, has continued to show signs of improvement, Thursday\’s report surmised and with regard to credit supply, although many firms still see financial institutions\’ lending attitudes as severe, firms as a whole regard the situation as improving.

According to the BOJ, the decline in bank lending on a year-on- year basis is partly due to its high growth a year ago. The amount outstanding of corporate bonds has exceeded the previous year\’s level.

Although many firms, mainly small ones, still see their financial positions as weak, on the whole firms\’ financial positions have continued to improve, the central bank said.

The central bank\’s report comes on the back of two days of policy meetings, held on Tuesday and Wednesday, at which the bank decided to increase its three-month lending facility for banks to 20 trillion yen (222 billion U.S. dollars) and to maintain it\’s ultar-low overnight interest rate at 0.1 percent.

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MANILA, March 18 (Xinhua) — Despite the onslaught of the El Nino weather phenomenon, the Department of Agriculture (DA) is confident that the paddy rice production for the second quarter will reach 3.463 million metric tons (MMT) or 0.8 percent higher than the 3.435 MMT produced in April to June in 2009.

Agriculture Undersecretary Salvador Salacup said on Thursday that the projected paddy rice production already factors in the impact of the ongoing dry spell which the Philippine Atmospheric, Geophysical and Astronomical Services Administration (Pagasa) said will last till mid-2010.

In its January round crop survey, the Bureau of Agricultural Statistics (Bas) under the DA noted that paddy rice production for April to June will post an increase owing to the 1.11 percent expansion in the areas harvested. Bas projected that paddy rice will be harvested in 868,000 hectares of irrigated and rain-fed farmlands all over the Philippines during the period.

\”With the demand (for palay) expected at 3.03 MMT in the second quarter, the 3.463 MMT projection is more than enough to cover our national requirement for the period,\” said Salacup.

For the first half of 2010, local reports indicated that the government is looking at cutting its projected paddy rice output to around 7 MMT, or 5.1 percent lower than the 7.38 MMT produced in January to June 2009. First quarter production, according to reports, is expected to settle at 3.6 MMT.

Palay production for the whole of 2010 is projected to reach 17. 4 MMT or 7 percent higher than the 16.26 MMT produced in 2009.

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TOKYO, March 18 (Xinhua) — The Cabinet Office in Japan on Thursday maintained the view that the economy is \”improving,\” after revisions to the indexes of business conditions for January were made.

The government raised the coincident index, a key indicator of the state of the Japanese economy, from its initial 99.9 to 100.1. On the index, 100 is equal to the average position on the index for 2005.

The leading index was, however, cut from an initial 97.1 points to 96.7, while the lagging index was kept at 85.1 points.

Japan has seen positive news on the economy in recent weeks, which led the government on Monday to raise its economic assessment. Despite this, however, Japan\’s economic recovery remains supported by fiscal measures put in place by the government and the Bank of Japan (BOJ).

On Wednesday, the Bank of Japan extended a December policy to lend money at rates close to zero for three months, amid worries that without support, there is a chance that the nation\’s economy would slip back into decline.

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VIENNA, March 17 (Xinhua) — The Organization of Petroleum Exporting Countries (OPEC), headquartered in Austrian capital city Vienna, performed a ceremony on Wednesday at its new headquarters, celebrating its 50th anniversary.

Attending the 156th OPEC meeting, Oil ministers of all OPEC member countries, representatives of international institutions in Vienna, such as the International Atomic Energy Agency (IAEA), the UN Industrial Development Organization (UNIDO), and the Commission on Security and Cooperation in Europe (CSCE) also joined the day\’ s celebration.

Michael Spindelegger, foreign minister of Austria, was invited to attend the ceremony and give a speech. He pointed out that the stability of global energy market has become the focus of world attention, where OPEC has played an important role. He also ensured, Austria will continue to assist OPEC and its activities in Vienna.

Alfredo Pinto, chairman of the OPEC conference, reviewed the developing history of OPEC in his speech. He emphasized that OPEC has been committed to level off a global crude oil market for years and will continue to make efforts to this end.

Austria Post issued a stamp on Wednesday to mark the 50th anniversary of OPEC.

On September 10, 1960, representatives of Iraq, Iran, Kuwait, Saudi Arabia and Venezuela held the Baghdad Conference, deciding to make an alliance against Western oil companies to maintain their oil revenues. On September 14, the Organization of Petroleum Exporting Countries was created.

Along with the seven later joined states, Algeria, United Arab Emirates, Ecuador, Gabon, Qatar, Libya and Nigeria, OPEC has 12 member countries at present, whose output of crude oil accounts 40 percent of the world production.

The tenet of OPEC is to coordinate and unite oil policies of its member countries, to ensure the interests of every member country but also common interests as a whole. Based on this, OPEC has been committed to maintaining the stability and prosperity of the oil market since its establishment, implementing a quota system of crude oil production, ensuring the interests of oil producers as well as consumers.

OPEC was headquartered in Geneva at the beginning of its founding. It moved to Vienna in 1965, where it was housed in a small, three-storied house along the Donau canal.

The government of Austria entered into an agreement with OPEC on September 12, 2009, providing new office building to OPEC. The 156th OPEC Meeting was the first formal activity performed after the formal opening of the new official building.

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BRUSSELS, March 16 (Xinhua) — British opposition is believed to have halted European Union (EU) moves for tougher hedge fund regulation, a plan that has also sparked anger in the United States.

EU finance ministers were to discuss the proposed regulation, which would subject hedge funds to tougher authorization and registration requirements, at their monthly meeting today.

But EU officials said Spain, EU\’s rotating presidency, took the issue off the agenda as soon as the meeting opened.

\”As I mentioned the decision taken by the (Spanish) presidency to defer the discussion planned for today on hedge funds and private equity, that is responsibility of the presidency… so we take note of the decision,\” Michel Barnier, EU commissioner for internal market and services, told reporters after the meeting.

Britain was believed to be a fierce opponent to the new rules as it feared their impact on London-based foreign hedge funds.

Barnier said EU governments would use the next few weeks to continue discussion on the issue.

The proposed regulation has also been opposed on the other side of the Atlantic. U.S. Treasury Secretary Timothy Geithner accused the EU of discrimination against U.S. hedge funds.

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WASHINGTON, March 16 (Xinhua) — The U.S. Federal Reserve announced Tuesday to keep the federal funds rate at historic low level of zero to 0.25 percent for \”an extended period\” to boost the economic recovery.

U.S. \”economic activity has continued to strengthen and that the labor market is stabilizing,\” the Fed said in a statement after policymaking panel meeting.

Federal Open Market Committee (FOMC), the interest rate policy making body of the central bank, said that it will maintain the target range for the federal funds rate and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate \”for an extended period.\”

Based on information received since the FOMC met in January, the Fed said that U.S. household spending is expanding at a moderate rate but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit.

Business spending on equipment and software has risen significantly. However, investment in nonresidential structures is declining, housing starts have been flat at a depressed level, and employers remain reluctant to add to payrolls.

The central bank said that while bank lending continues to contract, financial market conditions remain supportive of economic growth.

Although the pace of economic recovery is likely to be moderate for a time, the FOMC anticipates a gradual return to higher levels of resource utilization in a context of price stability.

The Fed\’s decision to keep rates at record lows for an \” extended period\” drew one dissent. Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, for a second straight meeting opposed keeping the yearlong pledge.

Hoenig believed that continuing to express the expectation of exceptionally low levels of the federal funds rate for an extended period was no longer warranted because it could lead to the buildup of financial imbalances and increase risks to longer-run macroeconomic and financial stability.

Related:

U.S. stocks rally after Fed pledges to keep rates low

NEW YORK, March 16 (Xinhua) — U.S. stocks rallied on Tuesday, with the Standard & Poor\’s hitting a new 17-month closing high, after the Federal Reserve pledged to keep rates low as well as offered a more upbeat assessment on economy.

The Dow Jones industrial average rose 43.83, or 0.41 percent, to 10,685.98. The Standard & Poor\’s 500 index rallied 8.95, or 0. 78 percent, to 1159.46, the highest since October 2008. The tech- heavy Nasdaq gained 15.80, or 0.67 percent, to 2,378.01. Full story

Gold rallies as dollar softens before Fed\’s decision

CHICAGO, March 16 (Xinhua) — Gold futures on the COMEX Division of the New York Mercantile Exchange closed much higher on Tuesday as dollar went down before the U.S. Federal Reserve announced its rate decision. Silver and platinum both rose.