Asia

But Japanese banks should have little problem getting their tier 1 capital up to 7% through profits, says Fitch.

The bank warns that even though inflation has eased, Asia remains in the grip of a deteriorating growth-inflation trade off.

Not much to smile about in the land of smiles then.

Are China and India about to buckle as well?.

If not, problems lie ahead, say Morgan Stanley.

The average ratio of non-performing loans of the 17 listed banks reduced from 1.58% at the end of 2009 to 1.14% at the end of 2010, says Ernst & Young.

Credit Suisse says food and services inflation will rise.

This is due to the higher than expected food inflation which increased to 11.7%.

Value Success International's recent Hong Kong issuance of RMB2billion in 3-year "dim sum" bonds was a success, says Moody’s.

Over the next 12 months, we expect residential prices to fall by 15% in first-tier cities and by 5% in second-tier cities, says HSBC.

Germany, France and the US took the top 3 spots.

This is despite earthquake losses for five major Japanese non-life insurers totaling PY400bn for the residential sector and JPY200bn for the commercial sector.

This, as Japan accounts for over 90% of all negative rating actions in the region during 2010, says Fitch.

That is with only 12.3% of the Moody's rated portfolio of speculative-grade, non-financial corporate debt issuers deemed as having inadequate liquidity.

Singapore dollar expected to strengthen as China’s net purchases of US bonds turn negative.

OK it may take 30 years, but it's interesting that during Premier Wen’s December 2010 Indian visit, USD16bn of trade deals were signed, outstripping the USD10bn signed by President Obama during his November visit, reports HSBC.