**Japan to approve reserved funds to cover damages from New Year’s Day earthquake**
Japan’s cabinet will approve the use of its reserved funds to cover the damage from the earthquake that hit the Noto Peninsula in Ishikawa prefecture on New Year’s Day, Prime Minister Fumio Kishida said.
Reuters reported that the amount being considered at next Tuesday’s meeting would likely be double the near 2 billion yen ($13.95 million) deployed in similar past disasters.
The reserved funds are for Japan’s government to deal with unexpected spending needs, and require the cabinet’s approval before they can be utilized.
*— Lim Hui Jie, Reuters*
**Caixin China December services PMI expands at fastest rate since July**
A private survey showed services activity continued to grow in China in December, with foreign demand for the country’s services also rising.
The Caixin China General Services Business Activity Index rose to 52.9 in December compared with 51.5 in November, climbing for a 12th straight month. The survey also noted that the rate of growth was the fastest since July.
“Growth momentum across China’s service sector continued to revive at the end of 2023,” according to the survey report. “Employment registered a subtle uptick as businesses exercised caution in hiring. But the slight expansion was sufficient to absorb new orders, keeping backlogs of work unchanged.”
A PMI reading above 50 indicates expansion in activity, while a reading below that level points to a contraction.
*— Shreyashi Sanyal*
**Hong Kong’s business activity improves at fastest pace since April**
Business activity in Hong Kong’s private sector improved at the fastest pace since April, according to S&P Global.
The city’s purchasing managers’ index rose to 51.3 in December, higher than the 50.1 seen in November.
The S&P Global report noted that new business and output in Hong Kong returned to growth, though foreign demand conditions remained subdued.
“The improvement in overall sales nevertheless supported faster employment growth, while firms also raised their inventory holdings amid softening cost pressures,” the report added.
*— Lim Hui Jie*
**Japan Airlines shares plunge over 2% as markets react to collision**
Shares of Japan Airlines slid as much as 2% on Thursday, before recovering slightly as Japan’s markets resume trading and react to the collision of a JAL flight at Tokyo’s Haneda airport on Jan. 2.
The crash occurred when the JAL flight 516 collided with a Japan Coast Guard aircraft, and claimed the lives of five of the six crew members aboard the Coast Guard plane.
In a regulatory filing on Thursday to the Japan Exchange, JAL said that the estimated loss from the aircraft collision amounted to 15 billion yen ($105 million), which will be covered by insurance.
**Australia stocks extend slide, hit two-week lows**
Australia stocks continued to slide after hitting a record high earlier this week, falling to two-week lows on Thursday.
The S&P/ASX 200 fell 0.53% to trade near 7,495 — its lowest level since Dec. 19 — retreating from an all-time high of 7,632.70 hit on Tuesday.
Aussie markets fell, tracking a somber global mood after minutes of the U.S. Federal Reserve’s meeting in December showed interest rate cuts were likely in 2024, but provided little clarity on when that might happen.
Bets that the Reserve Bank of Australia will no longer be raising rates have buoyed the country’s stock market — but those hopes have been partly driven by the Fed’s dovish shift.
The Aussie dollar strengthened 0.1% against the U.S. dollar in early trading.
*— Shreyashi Sanyal*
*Source: Reuters*