Stock Market Today

SYDNEY -(Dow Jones)- A leading index of the Australian economy releasedWednesday grew at an annualized rate of 3.1% in July, compared with growth of2.7% in June.

The index of where the economy is headed within the next three to nine months iscompiled monthly by Westpac Banking Corp. and Melbourne University’s Instituteof Applied Economic & Social Research.

The coincident index–a broad measure of current economic activity–grew at anannualized rate of 0.2% in July, compared with growth of 0.1% in June.

“Westpac is expecting growth momentum inside the Australian economy in the secondhalf of 2011 at an annualized pace of around one.5%,” said Westpac chief economistBill Evans.

The economy is set to remain characterized by weak growth in consumer spendingas the cautious consumer seeks to increase savings still further and by ongoingweakness in residential and non-residential building, Evans added.

Some correction to the investment plans of firms servicing the non-miningsectors in response to the subdued outlook for sales and a significantdetraction from growth from inventories can also be anticipated, he added.

-By James Glynn, Dow Jones Newswires; 61-2-8272-4685; james.glynn@dowjones.com

 (End) Dow Jones Newswires 09-20-112045ET Copyright (c) 2011 Dow Jones & Company, Inc.

SYDNEY -(Dow Jones)- A leading index of the Australian economy releasedWednesday grew at an annualized rate of 3.1% in July, compared with growth of2.7% in June.

The index of where the economy is headed within the next three to nine months iscompiled monthly by Westpac Banking Corp. and Melbourne University’s Instituteof Applied Economic & Social Research.

The coincident index–a broad measure of current economic activity–grew at anannualized rate of 0.2% in July, compared with growth of 0.1% in June.

“Westpac is expecting growth momentum inside the Australian economy in the secondhalf of 2011 at an annualized pace of around one.5%,” said Westpac chief economistBill Evans.

The economy is set to remain characterized by weak growth in consumer spendingas the cautious consumer seeks to increase savings still further and by ongoingweakness in residential and non-residential building, Evans added.

Some correction to the investment plans of firms servicing the non-miningsectors in response to the subdued outlook for sales and a significantdetraction from growth from inventories can also be anticipated, he added.

-By James Glynn, Dow Jones Newswires; 61-2-8272-4685; james.glynn@dowjones.com

 (End) Dow Jones Newswires 09-20-112045ET Copyright (c) 2011 Dow Jones & Company, Inc.

BEIJING -(Dow Jones)- China’s central bank and financial institutions bought anet CNY376.9 billion worth of foreign exchange in August, surging from CNY219.6billion in July, according to a Dow Jones Newswires calculation based on centralbank information issued Wednesday.

The accelerated net purchases during the month indicates a rebound in foreigncapital flowing into the country. The banking system’s forex purchases positionwas CNY25.265 trillion at the end of August, up from CNY24.888 trillion at theend of July, central bank data showed.

Although the information include foreign currencies bought by commercial banks andother financial institutions, they mostly reflect purchases by the People’s Bankof China, which requires Chinese companies to sell most of their foreignexchange to the central bank.

China’s foreign reserves, the largest within the world, totaled $3.1975 trillionat the end of June, up from $3.0447 trillion at the finish of March.

-Yajun Zhang contributed to this article, Dow Jones Newswires; (86 10) 8400-7712; yajun.zhang@dowjones.com

 (End) Dow Jones Newswires 09-20-112346ET Copyright (do) 2011 Dow Jones & Company, Inc.

BEIJING -(Dow Jones)- China’s central bank and financial institutions bought anet CNY376.9 billion worth of foreign exchange in August, surging from CNY219.6billion in July, according to a Dow Jones Newswires calculation based on centralbank information issued Wednesday.

The accelerated net purchases during the month indicates a rebound in foreigncapital flowing into the country. The banking system’s forex purchases positionwas CNY25.265 trillion at the end of August, up from CNY24.888 trillion at theend of July, central bank data showed.

Although the information include foreign currencies bought by commercial banks andother financial institutions, they mostly reflect purchases by the People’s Bankof China, which requires Chinese companies to sell most of their foreignexchange to the central bank.

China’s foreign reserves, the largest within the world, totaled $3.1975 trillionat the end of June, up from $3.0447 trillion at the finish of March.

-Yajun Zhang contributed to this article, Dow Jones Newswires; (86 10) 8400-7712; yajun.zhang@dowjones.com

 (End) Dow Jones Newswires 09-20-112346ET Copyright (do) 2011 Dow Jones & Company, Inc.

By Chester Yung, Of DOW JONES NEWSWIRES

HONG KONG -(Dow Jones)- Hong Kong’s headline inflation likely eased in Augustfrom a far more than 15-year high in July because of the effect of government reliefmeasures, economists said.

But rising food prices, rentals and other costs will continue to put upwardpressure on consumer prices, with the relief measures set to expire this month,the economists said.

The city’s consumer price index likely rose 5.8% in August from a yearearlier, lower than the 7.9% rise in July, according to the median forecast ofnine economists polled by Dow Jones Newswires.

The government is scheduled to issue the CPI data Thursday at 0830 GMT.

July’s figure, which was the biggest CPI rise since November 1995′s 8.4%increase, was distorted by a waiver on public housing rents that took effect inJuly and August last year but in August and September this yr.

“Removing the effect of the one-off government relief measures, underlyinginflation continues to show upward momentum, intensifying the problem ofnegative real interest rates and lending support to local property prices,” saidANZ economist Raymond Yeung.

“This will trigger a political demand to unpeg the Hong Kong dollar from theU.S. dollar or calls for far more ‘sweeteners’ inside the forthcoming policy address” byHong Kong Chief Executive Donald Tsang, Yeung added.

Donald Tsang is scheduled to announce the final policy address of his term onOct. 12, with measures to tame inflation and property prices likely to be infocus.

Under Hong Kong’s currency board system, the Hong Kong dollar is pegged at HK$7.80 to the U.S. dollar, but is allowed to trade in a range of HK$7.75 to HK$7.85. Hong Kong Financial Secretary John Tsang reiterated final month thegovernment is committed to maintaining the peg.

 Table of forecasts for Hong Kong's August CPI (Percentage change from a yr previously)Bank of East Asia 5.4%HSBC 5.5%Citigroup 5.6%Morgan Stanley 5.7%Credit Agricole CIB 5.8%ING five.8%Hang Seng Bank five.8%Daiwa Capital Markets 6.2%ANZ six.4%Consensus (Median) five.8%July seven.9%

-By Chester Yung, Dow Jones Newswires; 852-2832 2331; chester.yung@dowjones.com

 (End) Dow Jones Newswires 09-21-110109ET Copyright (c) 2011 Dow Jones & Company, Inc.