Asia hedge funds lose $2 bln in 1st outflow in 17 mths
Investors pulled out as the Eurekahedge Asia index for hedge
funds lost 4.31 percent in September, its fourth-biggest monthly
decline since the index was created in 2000.By comparison, Asian shares as measured by the MSCI
Asia-Pacific index slumped 9.5 percent in
September, the biggest fall since May 2010.Global hedge fund industry assets declined by $37 billion to
$1.76 trillion during the month, the tracker estimated.
TREASURIES-10-yr note dips in Asia on profit-taking
* The 10-year note dipped around 6/32 in price to yield
2.176 percent , compared with 2.155 percent in New
York late on Monday. In the stock market, S&P futures rose 0.2
percent .* Treasuries were lightly supported early in Asian trade
after Moody’s warned it may slap a negative outlook on France’s
Aaa credit rating in the next three months if the country fails
to make progress on crucial fiscal and economic reforms.* Profit-taking then kicked in as a batch of Chinese data
came in broadly in line with expectations, confirming that
China’s economic growth was moderating but not weakening
sharply.* The 10-year note is now hovering close to support around
2.266 percent, the 38.2 percent retracement of a July to
September rally in the maturity. More support is clustered near
2.3 percent to 2.31 percent, an area containing a few daily
highs hit in late August.* Focus turns to Fed chairman Bernanke as he speaks on “The
Effects of the Great Recession on Central Bank Doctrine and
Practice” before the Federal Reserve Bank of Boston 56th
Economic Conference, Boston, Massachusetts at 1715 GMT.* The Treasury Department holds its weekly sale of four-week
bills and sells 52-week bills at 1530 GMT.
REFILE-Bank of Canada survey shows businesses less upbeat
The Bank of Canada’s autumn business outlook survey,
released on Monday, also showed companies have lowered their
expectations for the inflation rate over the next two years,
and for the first time in two years see their output prices
rising more slowly than in the past year.Business sentiment declined from record highs registered in
the bank’s summer survey, but remained positive across all
indicators.The balance of opinion on future sales, the percentage of
firms expecting faster growth minus the percentage expecting
slower growth, fell the most sharply to 6 data points in the
autumn survey from 20 previously.The balance of opinion on intentions to increase employment
slipped to 38 from 53 and on intentions to increase investment
fell to 22 from 30. Indicators of capacity pressures also
moved downward.In a sign the central bank may be able to hold its key
interest rate steady without fear of fueling inflation, 41
percent of businesses surveyed said they expect the inflation
rate to stay between 1 and 2 percent, compared with just 18
percent in the summer survey. Forty-seven percent said they see
inflation at 2-3 precent, down from 62 percent.A separate bank survey of senior loan officers showed
business lending conditions eased overall in the third quarter
but to a lesser degree than in the second quarter.
