ASIA BIZ FORECAST

May 18, Sat. 14:10 - 14:40 (UTC) etc.

Abenomics: Cure or Curse?
Radical monetary easing is a key pillar of Prime Minister Shinzo Abe's program to revive Japan's economy. Analysts credit "Abenomics" for a sharp weakening of the yen and a bull run on the Tokyo stock market. The Japanese currency has breached 100-yen to the dollar, while the Nikkei 225 is back above 15,000 for the first time in more than 5 years.

Proponents of ultra loose monetary policy argue that a weakening yen will trigger a virtuous circle: a recovery of corporate earnings, higher wages, more jobs, which in turn will boost domestic consumption and revitalize the economy.

Phase 1 -- market stimulation -- is going to plan. But how about the rest of the scenario? In our report, we talk to one expert who is convinced Abenomics is leading Japan down the road to financial ruin.

China Cracks Down on Forex Pirates

Chinese authorities are tightening surveillance of foreign exchange transactions. The move is aimed at stemming the inflow of speculative money in the guise of trade settlements. China's exports climbed almost 15 percent in April. But some analysts estimate that half the increase comes from fictitious trade deals.

If that's true, bogus trade could be causing major distortions to the world's second largest economy. We look at what is going on behind the scenes.