Asian Stocks Rally as Cooling U.S. Inflation Boosts Fed Rate Cut Hopes 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
China Keeps Loan Prime Rates Unchanged for 13th Straight Month as Policymakers Prioritize Credit Demand Recovery 
Iraq PM Visits Washington as U.S. Oil, Gas Deals Take Center Stage 
South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Japan Signals Surprise Yen Intervention Strategy as BOJ Hawkish Stance Puts FX Traders on Alert 
Asia Stocks Slip as Iran-Hormuz Tensions Lift Oil Prices, Dollar and Bond Yields 
BOJ Raises Interest Rates to 31-Year High, Signals Strong Focus on Inflation Risks 
RBA Minutes Signal Australia Central Bank Remains Ready to Raise Interest Rates if Inflation Persists 
Fed Chair Kevin Warsh Launches Task Forces to Overhaul U.S. Monetary Policy Framework 
China's industrial profits decreased by 2.3 percent y/y for the year 2015, as compared with previous years gain of 2.2 percent, suggesting that a need for deleveraging in China's industrial sector. Mining sector was hit hard as profits dropped by 58.2 percent y/y, while manufacturing rose by 2.0 percent. The state owned enterprises profits decreased by of 21.9 percent, while profits of privately owned companies increased by 3.7 percent.
The monetary policy will have to ease in order to reduce the borrowing cost for the corporate, however, such a measure will pressurize CNY exchange rate, contradicting the actions of the central bank to stabilize its currency. China will have to discover a new method to balance its currency stability and monetary policy stance.
