China's Xiangshan County In Zhejiang Eases Home Purchase Limits

Xiangshan county, in China's Zhejiang province, has relaxed some restrictions on home purchases, the China Securities Journal reported Thursday, citing unnamed local real estate agents and developers.
The report said the real estate agents and developers have been telling their customers they are able to buy third and subsequent homes if they can pay the full purchase price, without taking a mortgage, effectively reversing a ban on such purchases implemented last year.
The report also said such buyers will receive a certificate of property ownership for their purchases, indicating the policy has the backing of local authorities.
Xiangshan county is the latest locality to loosen controls on the property market in the face of falling revenues from land sales and property taxes, and despite Beijing's determination to drive down home prices. In fact, the central government has already ordered some cities to reverse their easing measures.
"This year, Xiangshan has cancelled the home purchase restrictions but (we) can't tell others. The adjustments were locally made," a member of a local property association in Xiangshan was cited as saying by the report.
However, the report also cited Xiangshan county's housing bureau as saying the purchase restrictions haven't been eased, and that the county is continuing to implement the curbs according to the policies of Zhejiang province and the city of Ningbo. Xiangshan is in Ningbo.
The average price of a second-hand home in Xiangshan rose 2% last year to CNY7,598 per square meter, the report said.
Housing sales and prices in many areas in China have fallen in recent months due to the government's property curbs.

Gold Down, But Fund Interest Supports - Trader

Gold prices are lower in Asia as traders lock in profits from the previous session's technically-driven rally. Spot gold is trading at $1,773.80/oz, down $2.00 from its previous settlement and $7.90 off Wednesday's high. Despite lower prices today, traders say gold is well supported above $1,750/oz by robust physical demand from Asian investors and strong fund interest in the yellow metal. "Some fund managers have been picking up gold recently because of additional hopes for more [monetary] easing in the U.S," a trader in Tokyo says. He adds that any renewed weakness in the USD will likely shore up gold prices, as dollar-priced commodities become cheaper to investors holding other currencies when the greenback is soft. Traders tip strong near-term resistance for gold at $1,800/oz.

USD/PHP Higher; 42.90 Resistance Tipped

The USD/PHP is higher, in line with USD strength against most regional currencies. The pair is last at 42.68 from 42.62 late Wednesday, and is likely to stay in a tight range as investors keep an eye on overseas leads, says a local bank trader. He tips resistance at 42.90 and support at 42.50.

The yen fell to its lowest level against

US Dollar
The yen fell to its lowest level against the dollar in seven months on Wednesday, hurt by the Bank of Japan's stepped-up efforts to revive the Japanese economy. The yen was at Y80.29 versus the dollar recently in New York, according to EBS via CQG. Tuesday's close was Y79.75. The euro jumped to a session high of 1.3267 against the dollar. Late Wednesday, the euro was at $1.3250 from $1.3235 late Tuesday, according to EBS via CQG. The dollar was at CHF0.9101 from CHF0.9124 and the U.K. pound was at $1.5667 from $1.5779. The ICE Dollar Index, which tracks the U.S. dollar against a basket of currencies, was at about 79.206 from about 79.044.

Japan Considering Y4 Tln Contribution To Expanded IMF Crisis Fund

Japan's government is considering contributing about Y4 trillion, or $50 billion, to a planned $500 billion expansion of the International Monetary Fund's resources for dealing with the European debt crisis, the Asahi Shimbun reported in its Thursday morning edition.

Japan wants to first determine what progress is being made by European nations to deal with the crisis, as well as contributions to the IMF planned by other nations, and so doesn't plan to announce how much it will contribute during an upcoming meeting of G-20 finance ministers and central bankers, the report said.

The Group of 20 industrialized and developing nations meeting will take place in Mexico City on Saturday and Sunday.
Euro-zone leaders are scheduled to meet on March 1-2 to discuss the debt crisis.

Eurozone Debt Worries To Still Weigh On EUR

The EUR may face downward pressure as concerns over Greece's debt problems remain even after a fresh bailout has been agreed upon, says Sumino Kamei, senior analyst at the Bank of Tokyo-Mitsubishi UFJ. She tips the EUR/USD in a 1.3200-1.3270 band and the EUR/JPY at 105.50-106.80 for the day. "Bond yields for Greece, as well as Portugal and Hungary, have been rising. Increasing concern over the European debt crisis will be pressuring the euro." The EUR/USD is last at 1.3248 and the EUR/JPY is at 106.34.

USD/INR Fwd Premiums Tad Up; 1-Yr In 2.90-3.00 Band

USD/INR forward premiums are slightly higher on sustained paying interest from foreign institutions looking to hedge their investments, says a dealer with a state-run bank. One-year forward premiums are at 2.96 vs 2.94 late Tuesday in Asia. "We did see some customer-based receiving earlier in the session, but the paying interest from FIIs (foreign institutional investors) is strong and is expected to continue as the outlook on inflows is positive," he says. The dealer tips one-year forward premiums to stay in a 2.90-3.00 range for the near-term. The spot pair is at 49.24, down from 49.31 late Tuesday in Asia

USD/INR Falls; 49.15-49.35 Range Tipped N/T- Dealer

The USD/INR is lower, tracking a firm EUR/USD, says a dealer with a foreign bank. The pair is at 49.25 vs 49.31 late Tuesday in Asia. The dealer says inflows for an up-to-$134 million primary share sale of the Multi Commodity Exchange of India Ltd, which opens Wednesday, and further news from the euro zone will be key to the pair's fortunes in the short-term. "But, there will be strong support from oil importers at lower levels, so I don't see the pair crashing," he adds, and tips the pair in a narrow 49.15-49.35 band for the day. The Sensex is 0.3% higher.

Oil Price Rise Could Support Gold

A rise in oil prices could turn out to be supportive for gold if inflation fears take centre-stage, says IG Markets analyst Stan Shamu. Nymex front-month April crude hit a nine-month high of $106.48/bbl Tuesday with risks skewed to the upside, Dow Jones technical analysis shows. "Should the oil price continue to rise, it could be more supportive of gold," Shamu says. Some investors use gold as a hedge against inflation as a store of value. However, in the near-term he says a small bit of profit-taking is weighing on prices, but it is not sizeable to warrant a substantial pullback. "I wouldn't be surprised if in the near-term, gold continues to trade in a range," he says; he adds, gold needs to break above $1,763/oz to move up further. Spot gold is at $1,755.85/oz, down $4.45 from its previous close.