Asian Investors Becoming More Optimistic - ING Survey

HONG KONG -(Dow Jones)- Asian investor sentiment improved for the second straight quarter in the fourth quarter with overall confidence back at levels before the financial crisis, according to a quarterly investor survey by ING Groep NV (ING).

ING's investor sentiment index rose 3.5% during the fourth quarter to 147, the highest level since the index was launched in the third quarter of 2007.

Asian investors continue to be optimistic about their domestic economies with 63% of survey respondents, excluding those in Japan, saying the economy improved during the fourth quarter and 70% of respondents saying they believe local economies will improve.

Investors remained optimistic despite slightly lowered expectations about a U.S. recovery. The survey found that 51% of respondents, excluding those in Japan, believed the U.S. economy will improve in the next quarter, down from 62% in the last survey.

Not surprisingly, markets with strong domestic growth led sentiment with survey respondents in China and India the most optimistic.

The survey was conducted last month with 3,730 "mass affluent investors" across 12 markets in the Asia-Pacific region. Respondents had more than US$100,000 in disposable assets or investments.

-By Ellen Sheng, Dow Jones Newswires; 852-2832-2336; ellen.sheng@dowjones.com

ECB Receives No Demand For 7-Day Dollar TAF

FRANKFURT -(Dow Jones)- The European Central Bank Wednesday said there was no demand for its seven-day dollar term auction, or TAF.

The announcement supports the idea that conditions are improving in the European banking system, where interbank funding rates have eased significantly over the last 12 months, stabilizing at low levels.

The ECB had offered dollar funds to two bidders against ECB-eligible collateral at a fixed rate of 1.13%.

-By Nina Koeppen; Dow Jones Newswires; +49 69 29 725 509; nina.koeppen@dowjones.com

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January 27, 2010 05:28 ET (10:28 GMT)

China Regulator: Banks Should Reasonably Control New Loans

BEIJING -(Dow Jones)- China's banking regulator urged banks to step up risk controls by reasonably controlling the growth in new lending and closely monitoring changes in the property market, according to a statement posted on its Web site Wednesday.

The China Banking Regulatory Commission, in a teleconference with banks nationwide Tuesday, urged lenders to strengthen credit management and strictly control any rebound in non-performing loans, saying the domestic and global macroeconomic situation is "full of complexity and uncertainties".

-Victoria Ruan contributed to this article, Dow Jones Newswires; 8610 8400 7799; victoria.ruan@dowjones.com

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January 27, 2010 05:06 ET (10:06 GMT)

UPDATE: ECB's Weber Says Stimulus Must Be Cut Only Gradually

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FRANKFURT -(Dow Jones)- The European Central Bank will only gradually phase out its special liquidity measures because the euro zone's economic upswing will be muted this year, ECB governing council member Axel Weber said in an interview with CNBC Europe Wednesday.

Countries in the 16-nation euro block are still reliant on fiscal support, but governments must tackle large budget deficits "head-on" when conditions improve, Weber said.

Struggling Greece, however, has "no alternative" but to meet tight budget rules if it wants to preserve market confidence, he said, speaking on the sidelines of the World Economic Forum in Davos.

The ECB will not adjust its policy to meet the needs of a single member state, he said.

Under the terms of the European Union Maastricht Treaty, member states are permitted to have a deficit of a maximum 3% of GDP.

Weber said that the euro's decline to a six months low doesn't signal an erosion in market confidence in the currency. "There is no problem with the credibility of the euro," he said.

Weber also said U.S. authorities' latest plan to rein in banking activities is a move "in the right direction", but added that Europe is taking a more gradual approach.

U.S. President Barack Obama plans to cap the size of large universal banks which combine activities across retail, commercial and investment banking.

-By Nina Koeppen, Dow Jones Newswires; +49 171 569 4340; nina.koeppen@dowjones.com

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