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THE ECONOMY.(TO THE POINT)

Investor's Business Daily

| August 02, 2005 | COPYRIGHT 2005 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

China's yuan edges up again

The Chinese currency closed at a post-revaluation high vs. the dollar for a 3rd straight session. The currency closed at 8.1046 yuan per dollar, up a mere 0.07% since July 21, when Beijing revalued the yuan by 2.1% to 8.11, but a lot more flexibility than before. China no longer has a fixed peg vs. the dollar, but a tightly managed float vs. a basket of currencies, which hasn't been disclosed.

China's economy may be cooling

Two reports reinforced views that Chinese manufacturing is gradually cooling. Hong Kong brokerage CLSA said its purchasing managers' index for China rose for the 1st time in 4 months to 51.5 in July from 51 in June. It was still the 3rd-worst reading since the index's April '04 launch. The National Bureau of Statistics' purchasers index fell for a 4th straight month in July, to 51.1 from 51.7 in June. Output and order growth are slowing as oversupply squeezes profit margins.

Japan's deflation may be easing

Japan's wages had their best gain in 7 months in June, rising 1.1%. Also, ...

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