TOKYO: Japan’s top minicar maker Suzuki Motor Corp. is to build a new auto assembly plant near the Indian capital New Delhi in a bid to meet growing demand in the country, a newspaper reported on Sunday.

Maruti Suzuki India Ltd., a local subsidiary of Suzuki, plans to construct the new plant in Manesar near its assembly base, with operation scheduled to begin in 2013, the Nikkei business daily said, quoting company sources.

The plant, its third in Manesar, will be built at a cost of 30 billion yen (356 million dollars) with an annual capacity of 250,000 vehicles, boosting Suzuki’s annual production in India to 1.7 million units, the daily said.

Suzuki, one of the earliest foreign entrants into India’s auto market, has built a dominant position there, boasting a market share of nearly 50 percent, the newspaper said.

Suzuki in 2007 launched an assembly plant in Manesar with an annual capacity of 300,000 vehicles. It is now building its second factory on the same site, with an annual capacity set for 250,000 units.

The second plant is not scheduled to come on stream until spring 2012, but surging demand in India prompted Suzuki managers to order a third site ahead of the launch of the second, the paper said.

Popular subcompact models such as the Alto and Wagon R will likely be produced at the third facility, it added.

Nearly two-thirds of Suzuki’s group operating profit is estimated to come from India.

The latest move is designed to strengthen its lead in the key market and allow the company to use the profit earned there to expand operations in other markets. such as Europe and the rest of Asia, the Nikkei said.

BEIJING: China should end preferential policies for automotive companies in order to curb over-capacity in an industry where sales jumped 55 percent in August, a government official said.

Chen Bin, a top official at China’s economic planning agency, said booming auto sales were leading to blind investment in the industry, which could result in annual production capacity of over 31 million units by 2015.

“Serious overproduction capacity will lead to negative market competitiveness a loss in enterprise efficiency, factory stoppages and other problems,” Chen said at an automotive symposium on Saturday.

“Judging from our understanding of the situation as reported by local governments and related departments, production capacity will far outstrip market demand for the coming period (ending in 2015),” he said in a report on the website of the National Development Reform Commission.

Last year, China became the world’s largest auto market when over 13.6 million vehicles were sold.

Sales have boomed this year, jumping 55.7 percent in August year-on-year, as the government rolled out a new subsidy scheme for energy-saving vehicles.

In order to curb overcapacity, local governments should stop pushing manufacturers to increase production and end preferential tax and land policies aimed at spurring production, Chen said.

He said the industry’s penchant for using preferential energy-saving policies to ramp up production of traditional automotive products should also be curbed.

China announced a trial programme in June to subsidise environmentally-friendly vehicles in five cities as part of efforts to reduce emissions, save energy and spur the development of green technology.

Under the trial project, the government offers subsidies of up to 60,000 yuan (8,850 dollars) for hybrid and electric cars and 3,000 yuan for fuel-saving models.

BEIJING: China’s customs agency on Saturday said that exports were up 35 percent in June from a year ago, while imports rose almost 53 percent. The figures showed the largest monthly trade surplus so far this year, $20 million, despite the debt problems of China’s largest trading partner, the European Union.

That should keep international pressure on China to further allow the value of its currency to rise, even after China last month relaxed the yuan’s two-year peg to the U.S. dollar.

The report said exports rose 35.2 percent in June, higher than expected, while imports were up 52.7 percent. That’s compared with the same period a year ago.

“Data for June shows China’s trade account continuing to defy gravity, with exports strong despite mounting evidence of a faltering global recovery, and imports strong despite expectations of slowing domestic investment growth,” said a research note from Tom Orlik, an analyst in Beijing for Stone & McCarthy Research Associates.

Export growth slowed from its May level of 48.5 percent, while import growth speeded up from its May level of 48.3 percent. The figures were posted on the customs agency’s website.

Beijing is closely following the debt problems of its largest trading partner, the 27-nation European Union. The debt problems are expected to hurt consumer spending and overall demand, and analysts continue to worry that Europe’s debt crisis is likely to hurt the recovery in trade.

Demand for China’s exports plunged after the global crisis hit in 2008, forcing thousands of factories that made shoes, toys and other low-cost goods to close and throwing millions of migrant laborers out of work.

Exports have rebounded at least temporarily to pre-crisis levels, hitting $137.3 billion in June, up from $117.3 billion in the same month two years ago.

“This is a symbol that China’s foreign trade has returned to where it was before the financial crisis,” Zheng Yuesheng, chief of statistics for the customs agency, told China Central Television. “China’s foreign trade is still moving toward basically balanced development,” he added.

Exports to Europe were up 36 percent in June from a year earlier while those to the United States rose 28.3 percent. China’s politically sensitive trade surplus with the United States was $17.6 billion.

Exports to some developing markets rose much faster, reflecting the uneven recovery of global demand. Shipments of Chinese goods to Brazil jumped 103.7 percent and to Russia by 59.2 percent.

Import growth sped up despite government efforts to cool a boom in the real estate industry, which is one of China’s top customers for steel, copper and other building materials.

“The quantity of iron ore and copper imported fell for a third month in a row, though the fall in the quantity of iron ore imports was disguised by an increase in prices,” Orlik’s note said, adding that it could indicate slowing demand in the near future.

SINGAPORE: Oil prices rose to near $76 a barrel Friday in Asia, following stock markets higher as confidence rose the global economic recovery remains intact.

Benchmark crude for August delivery was up 47 cents to $75.91 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $1.37 to settle at $75.44 on Thursday.

Signs the global economic recovery remains on track eased fears of a new recession and helped boost investor confidence.

The Labor Department said Thursday that initial jobless claims fell last week to the lowest level since early May, and the International Monetary Fund raised its 2010 world growth forecast to 4.6 percent from 4.2 percent.

All major Asia stock markets rose Friday after the Dow Jones industrial average gained 1.2 percent Thursday. Oil traders often look to equities as a gauge of overall investor sentiment.

U.S. crude supplies dropped last week, suggesting oil demand could be improving. Crude inventories plunged 5.0 million barrels, the Energy Department’s Energy Information Administration said Thursday, more than a drop of 3.5 million barrels forecast in an analyst survey by Platts, the energy information arm of McGraw-Hill Cos.

However, inventories of gasoline and distillates rose, the EIA said.

“Given the strength of the fundamentals, we would state that something in the region of $80 or above is more befitting” the oil price, Barclays Capital said in a report.

In other Nymex trading in August contracts, heating oil rose 1.17 cents to $2.0170 a gallon, gasoline gained 1.36 cents to $2.0647 a gallon and natural gas was steady at $4.407 per 1,000 cubic feet.

Brent crude was up 44 cents to $75.15 a barrel on the ICE futures exchange.

TOKYO: Asian markets rose Friday after a fall in US unemployment benefit claims eased the worries about a stuttering global economic recovery that have roiled stocks for several weeks.

South Korea’s central bank added to the optimism by raising its benchmark interest rate from a record low amid prospects for faster growth in the country’s economy.

Japan’s Nikkei 225 stock average inched up 6.27 points, or 0.1 percent, to 9,542.01 with exporters advancing on a weaker yen. But overall trading was cautious ahead of upper house elections Sunday and expected losses by the ruling party.

Investors bought tech shares in Tokyo trade, with Canon Inc. up 1.2 percent and Sony Corp. rising 0.8 percent.

South Korea’s Kospi added 0.5 percent to 1,706.68 after the interest rate decision.

The Bank of Korea lifted the benchmark seven-day repurchase rate to 2.25 percent from 2 percent. It was the first increase since August of 2008, just before the onset of the worldwide financial meltdown.

Hong Kong’s Hang Seng was up 0.6 percent at 20,171.40 and Australia’s stock benchmark gained 0.1 percent to 4,361.50.

Markets in Singapore, Taiwan and Malaysia also rose while in mainland China, the Shanghai Composite Index was fractionally lower.

In New York Thursday, stocks rose for a third straight day after the Labor Department’s report of a larger than expected drop in the number of newly laid-off people seeking unemployment benefits.

The Dow Jones industrial average rose 1.2 percent, to 10,138.99. The Standard & Poor’s 500 index rose 0.9 percent, to 1,070.25, and the Nasdaq composite index finished up 0.7 percent at 2,175.40.

In currencies, the dollar rose to 88.56 yen from 88.38 yen in New York late Thursday. The euro fell to $1.2694 from $1.2697.

Benchmark crude for August delivery was up 26 cents at $75.70 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.37 to settle at $75.44 a barrel on Thursday.

WASHINGTON: The World Bank has approved a four-year over $6 bn lending program for Pakistan that seeks to boost tax revenues, make energy supplies more reliable and improve conditions in conflict-hit areas.

While the lending strategy from 2010 to 2013 is slightly less than the $6.5bn committed during the last four-year period, the program hones in on specific trouble spots in Pakistan.

The World Bank said it will intensify its efforts to help the government increase tax revenues, which has caused chronic underfunding of key services and made the country reliant on foreign aid.

Pakistan’s tax-to-GDP ratio is one of the world’s lowest.

“Raising the ratio of tax to GDP – currently only 10.2 per cent of GDP – is essential to mobilize resources to invest in human development and infrastructure, build resilience to future shocks, and guard against costly and disruptive growth reversals,” the Bank said in a statement.

In the energy sector, the Bank said it will help Pakistan tap its huge hydropower potential to make power supplies more reliable and improve the distribution of natural gas system, which through leakage or inefficiencies has higher than average losses.

The World Bank said it will also focus its lending on addressing problems in Pakistan’s conflict-hit areas. These include Federally Administered Tribal Areas near the Afghan border, and Khyber-Pakhtunkhwa province, which has been targeted by militants but is not an Islamist stronghold.

In particular, the World Bank said funding will be aimed at health and education, and improving the livelihoods of people, particularly for young men, living in these areas.

“This strategy recognizes that to steer Pakistan back on a path of broad-based growth, create jobs, and reduce poverty, a prolonged period of macroeconomic stability, financial discipline and sound policies is required,” said Rachid Benmessaoud, World Bank country director for Pakistan.

LONDON: World markets climbed Thursday on hopes that the global economy will recover faster than expected and as investors prepared for a European Central Bank interest rate meeting.

The International Monetary Fund raised its 2010 world growth forecast to 4.6 percent from 4.2 percent in April and boosted estimates for the United States and China.

In Europe, the committee subjecting some of the region’s biggest banks to stress tests said it has widened the factors aimed at determining their financial health. That reinforced confidence in the results, which will be published later this month.

It also raised sentiment ahead of a European Central Bank meeting and news conference, where investors will look for comments from bank head Jean-Claude Trichet on the state of the banking sector and views on the bank stress tests.

Britain’s FTSE 100 was up 1.2 percent at 5,076.62 and Germany’s DAX was 0.5 percent higher at 6,021.78. France’s CAC-40 rose 1.1 percent to 3,522.10.

Financial stocks rallied, with Barclays up 3.1 percent, Deutsche Bank gaining 2.6 percent and Societe Generale gaining 2.9 percent.

Asian stocks jumped more sharply although Wall Street was expected to slip on the open after surging the previous day — Dow industrials futures were down 0.1 percent at 9,966 and Standard & Poor’s 500 futures were 0.1 percent lower at 1,058.50.

In its report, the IMF warned that the European debt crisis could pose a risk to global growth but said a return to recession was unlikely. In fact, strong growth in developing economies and improvements in the U.S. would outpace a stagnation in Europe, which will be hit by painful austerity cuts.

The forecast, along with a strong profit forecast by State Street bank in the U.S. helped boost confidence in the upcoming corporate earnings season.

In Europe, investors were also heartened by the publication of the criteria to be used in the bank stress tests. The results, which are to be published July 23, will cover 91 banks, which represent 65 percent of the European banking sector.

Later in the day, the European Central Bank is widely expected to leave its key interest rate unchanged at a record low while bank president Trichet will be watched closely at a press conference.

“The upcoming bank stress tests will likely feature among the questions but Trichet will comfortably side-step any efforts to get him to pre-judge the likely outcome,” said Daragh Maher, analyst at Credit Agricole.

Other points of interest will be Trichet’s comments on the central bank’s program to buy bonds from banks to increase their cash levels as well as the outlook for growth and inflation.

The Bank of England, meanwhile, announced it had left its interest rates unchanged, as widely expected by analysts.

Further boosting stocks on Thursday was official data showing a strong rise in both imports and exports in Germany, Europe’s biggest economy. The rise in May suggests industry is eagerly importing materials necessary for production and that exporters continue to benefit from a weak euro.

In Asia, Japan’s benchmark Nikkei 225 stock index jumped 256.09, or 2.8 percent, to 9,535.74 and South Korea’s Kospi added 1.4 percent to 1,698.64. Australia’s S&P/ASX 200 climbed 2.4 percent to 4,356.70.

Elsewhere, Hong Kong’s Hang Seng index rose 1 percent to 20,050.50. Benchmarks in Singapore, Indonesia, India and Taiwan were also higher while China’s Shanghai Composite Index dropped slightly.

In currencies, the dollar rose to 88.20 yen from 87.76 yen in New York late Wednesday. The euro climbed to $1.2653 from $1.2633.

Benchmark crude for August delivery was up 59 cents to $74.66 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $2.09 to settle at $74.07 on Wednesday.

SINGAPORE: Oil prices climbed to near $75 a barrel Thursday in Asia, extending big gains from the previous session as global stock markets rallied.

Benchmark crude for August delivery was up 73 cents to $74.80 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $2.09 to settle at $74.07 on Wednesday.

All major Asian stock markets advanced Thursday after the Dow Jones industrial average soared 2.8 percent, breaking a two-week sell-off. Oil traders often look to equities as a barometer of overall investor conf

BEIJING: The world economy is recovering faster than expected but Europe’s debt crisis has increased financial risks and governments urgently need to rebuild shaky public confidence, the International Monetary Fund said Thursday.

The Washington-based IMF raised its 2010 world growth forecast to 4.5 percent from 4.1 percent in April. Its U.S. growth forecast rose from 2.7 percent to 3.3 percent. The outlook for the European nations that use the euro common currency was unchanged at 1 percent.

But in its quarterly World Economic Outlook, the IMF warned that “risks have risen sharply” due to Europe’s financial turbulence. It said European leaders need to act quickly to resolve debt problems and restore confidence in their banks.

Europe’s debt risks are “threatening to spill over to other regions” and reverse recent gains, the agency said in a separate Global Financial Stability Report.

Global economic indicators stabilized at a high level in May, with industrial output and trade posting double-digit growth, the agency said. It said there was a modest but steady recovery in developed economies and strong growth in emerging nations.

Asian economies recovered strongly this year, driven by buoyant exports and stronger domestic demand, the IMF said.

The agency raised its 2010 growth forecast for China to 10.5 percent from 10 percent in April, for Japan to 2.4 percent from 1.9 percent and for India to 9.4 percent from 8.8 percent. The estimate of the region’s growth rose to 7.5 percent from 7 percent.

However, it warned that any slackening in Europe’s recovery “would affect Asia through both trade and financial channels.”

Weak data from major economies in recent weeks have diminished confidence in a strong rebound from last year’s recession.

The IMF said European leaders must act quickly to rebuild confidence. It said they must resolve uncertainty about banks’ exposure to government debt and other risks and make sure lenders have enough capital and markets have adequate liquidity.

It said many advanced economies urgently need to push ahead with financial system reforms including recapitalizing banks, restructuring and consolidating banking industries and overhauling regulation.

“In the absence of complete banking sector recapitalization and restructuring, the flow of credit to the economy will continue to be impaired,” the IMF said.

TOKYO: Asian markets rose Thursday as investors took heart from U.S. bank State Street’s robust profit forecast and scooped up stocks battered down by days of selling.

Sentiment turned upbeat across Asia after the Dow Jones industrial average surged 274.66 points, or 2.8 percent, to 10,018.28 on Wednesday. The State Street profit forecast boosted financial stocks and relieved some of the worries about the upcoming quarterly earnings season.

Yet analysts cautioned that markets are likely to stay volatile as significant doubts remain about the durability of the global economic recovery. There are signs from Europe to Asia to the U.S. that growth is slowing and some fear a repeat of last year’s recession.

Japan’s benchmark Nikkei 225 stock index jumped 247.56 points, or 2.7 percent, to 9,527.21 and South Korea’s Kospi added 1.2 percent, to 1,695.75. Australia’s S&P/ASX 200 was up 1.9 percent at 4,333.70.

Elsewhere, Hong Kong’s Hang Seng index climbed 1.5 percent to 20,144.40. Benchmarks in Singapore, Indonesia and Taiwan were also higher while China’s Shanghai Composite Index dropped slightly.

The Dow finished above 10,000 for the first time since late June as investors had second thoughts about the heavy selling in the stock market during the last two weeks.

In currencies, the dollar rose to 88.38 yen from 87.76 yen in New York late Wednesday. The euro climbed to $1.2668 from $1.2633.

Benchmark crude for August delivery was up 73 cents to $74.80 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $2.09 to settle at $74.07 on Wednesday.