I will have more in the markets shortly. Angie thank you. Central bankers reaffirmed their belief in the power of Monetary Policy at their meeting in jackson hole, with janet yellen signaling a hike is still on the table next month. Meanwhile, we have kuroda vowing to act decisively on stimulus is needed, saying there is ample roof room for additional leaving. Editor brettnomy miller is in tokyo. What clues does this give us, at the boj meeting . Reporter we are certainly in for a tense wait. Kuroda has implicated as he has said before, that a full increase in policy is possible. That means we could see negative Interest Rates cut further. We could see the asset Purchase Plan increased as well. Variables ist of open. We have seen in recent days, analysts talking about the possibility of the boj moving into new areas including looking at buying local government bonds, and areas where public corporations are issuing bonds projects,t like rail sewers, building hospitals. A whole host of areas we could see the boj moving into. At the boj meeting in a couple of weeks from now, will this comprehensive review we are hearing about at the meeting actually affect policy . Reporter it really is a wildcard, but we have had the governor say previously after the review was announced that there will be no retreat. When he signaled the review, he was talking about finding ways to the pricej target. We certainly expect more rather than less. That said, there is the they could that question the effectiveness of policy, and then everything is up in the air. And, everybody is questioning the price target whether or not the language needs to change. What about inflation . Reporter inflation really is a week. Oint, as we saw last cpi came in at 0. 5 in japan. That puts it back in exactly where it was when kuroda began. The bank has struggled to hit the inflation target, despite the record monetary easing. We will see questions raised more and more about whether they have to give up on the target, or at least the timeframe. Ifn people are waiting they dont, people are waiting to see more stimulus to boost the prices of the target. Angie brett miller, thank you for that out of tokyo. Staying in japan, the boj, another central bank having a front row seat as janet yellen spoke at jackson hole, and indicated a rate hike is on the way. Chief economist david carbon saying, the fed must be more resilient to global events when it comes to making the big decisions. If something would happen in Financial Markets, they would back off, or get a bad payroll number and the fed would back off, and then brags it came off brexit came up. All the while, the economy has been doing just fine. Then when it caps off, to get a little further behind the curve. It is not really a hawkish move, it is saying we have to start paying attention to the real economy, and not getting so freaked out by the little Financial Market shenanigans, which for the most part, they totally are. Many inferred that a september hike remains on the cards, j. P. Morgan says it doesnt matter when the hike happens, but by how much. Rates are simply going to normalize. We need to see a period english Interest Rates go up in the u. S. , and whether it happens in , december it does not particularly bother me. What matters is how far they go and what that will mean for the long end of the curve, which is low at the moment. With low bond yields, that is converted into equity markets that are very bifurcated at the moment. They discussed different potential ways of jumpstarting the global economy, patrick of the texans as doing nothing is not an option for the boj. In japan, no way to read a cannot stop kuroda your japanese banks are holding two years of gdp bonds in their assets. If you stop Monetary Policy, there will be a banking crisis immediately. My worry is that Central Banks feel that the burden should be shifted to the rest of policies and government should do more, time,s, but at the same they are constrained and cannot stop. Angie that was the word on the fed meeting from asia. The marketsck to with juliet. Janet yellens comments have the most adverse effect on stock and currencies. Juliette they have. We have the yuan trading at a fiveweek low, and the korean won also under significant pressure. Ignore this impressive gain from, japan and what you it falls more than 1 coming through. We knew that if janet yellen was going to be more hawkish than the market had expected, that seems to be the case with putting the september rate hike bike and the table back on is able. That is what were seeing. Jakarta down around 1 . Singapore up by 8 10 of 1 . The hang seng up by a third of 1 . It is holding at a twoweek low. This is amid concerns the borrowing costs could actually start to dent the already fairly fragile Property Market in hong kong. We know that has been weakening. And shanghai, the market looking pretty flat. A lot better than it was earlier than in the session. It is very solid game from gain from the nikkei. The divergences in the central bank, policy as the is looking to tighten Monetary Policy. It looks like rhoda is putting the chance of loosening kuroda is putting the 10th of loosening my three policy back on table. Having a look at the emerging leading the korean won the charge against em currencies down by 1 , versus the dollar at 1123. 75 korean won. This is Dollar Strength on the back of Janet Yellens comments. It has had this impact. Also the chinese yuan at a fiveweek low. Not much moving, looking at the offshore renminbi. It is a little bit stronger holding at 6. 6883. Also, the weaker japanese yen is helping in part to boost Japanese Equities, down a third of 1 . 102. 15. Upward pressure on Japanese Equities down elsewhere today. Angie thank you. Lets check in on other headlines. James packer has sold his 338 billion 338 Million Dollars state, reducing ownership by almost half. The billionaires privately held investment vehicle, consolidated pros holdings, agreed to sell 35 million shares at 12 australian dollars a piece. Shares fell down 2. 3 in sydney. Struggling air blog airbag ker to contact, suffering more headlines. Reports from texas say one person was killed and four others injured in an explosion on a subcontractors bus. It happened last monday, though few details have been released. Says the truck was carrying airbag inflator is an confirmed it is working with an official investigation. Volkswagen korea has reportedly said it will not take legal action in response to a ban of 32 of its models of the emissions scandal. That is according to news. The van affected 83,000 vw cars earlier this month. Koreas Environment Ministry launched investigations into 23 foreign automakers, and 110 diesel models for possible manipulation of data. Japans giant government pension set for a it could be shopping spree. Shery ahn is looking into this. The besto back in game, what does this mean for stocks . Orry it depends on whether not the fund stays committed to their allocation target. But we know so far is the value of their investment in stocks has plunged, with the market in japan following this year. The topics being doubledigit losses this year. What that meant was that their the allocation and japanese stocks, fell to 21 , instead of the quarter of the portfolio, the 25 they were targeting. Take a look at the graph. You can see their allocation and stop in stocks, domestic and foreign, are falling short of the target on the blue bar. The only asset where they have a slightly overshot is in domestic bonds, because of bond yields falling and prices rising. The weight of the holdings has passed their allocation target of 35 . Essentially means is that they will need to spend 53 billion in japanese shares in order to get to that 25 target. They have some leeway on whether or not they want to stick originally to the target, but the fact is that the pension fund seems committed to keeping up their strategy. Take a listen. Holdings, theuity earnings ratio may appear volatility in the shortterm, but in the longterm, it is easier to achieve the profit target the Pension Fund System aims for. We dont intend to change our management style, where the acid is the accumulated through stable interests and dividend income. Shery the reason they are talking about volatility in the short term is because their strategy has seen headwinds. Their domestic debt, that is the only asset class where they had actually recorded a profit. They saw 52 billion losses in the fiscal year ending in march. Angie i guess one positive at least for the japanese economy is the famously low jobless rate. Shery you are right. If you take a look at the 3. 1 and Unemployment Rate for june, we could see that the lowest since 1995. We can see on the graph, more jobs are also available for job seekers. We can also see the Unemployment Rate has been steadily declining. Hidden behind this data is the fact that although we have seen an overall increase in the workforce, there were 14. 7 workers between 25 and 44 years old in june, and that was the lowest level in 48 years. Take a look at the next graph, showing that although we have more women in the workforce, we can see that male workers have been declining. Although this looks great for female workers, the fact is that female workers are more likely to hold lowpaying jobs with fewer benefits, such as parttime jobs instead of fulltime jobs. A persistent problem there. Thank you. Coming up later this hour, pulling the plug. The new rules which could kill some chinese electric car started. Next, fighting deflation is a strategy from central bankers at jackson hole. Morgan stanleys jennison garner joins us. This is bloomberg. Angie welcome back. You are watching asia edge. Im a i am angie lau. At least nine dreamliner flights between now and wednesday canceled because of engine problems. Corrosion in the rollsroyce prompted them to check all of the fleet. Last week, ana said he had been experiencing in issues. Three planes suffered trouble e in flight, an mitsubishi has aborted a tech flight of the domestically designed airliner for the second time due to problems with online systems. It returned to know ugly up because of an error in the airconditioning system. Mitsubishi says the plane will be fully inspected, but will not fly to the u. S. Today. Agricultural bank of china posted secondquarter profit game gain of half of 1 on the back of increasing bad loans. Net income rose to 7. 6 billion, leading estimates of 6. 7 billion. The bad linebackers down by 3 . Lets take a look at the reaction to jackson hole here my next. Guest expects emerging markets to continue. Lets bring in jennison garner, chief agent and emerging equities strategist at morgan stanley. You still call for equal weight despite the reaction from investors today selling off. I think theres a bit of profit taking there, because what is achieved at jackson hole question of the next more debates about ultimately, we think they will not hike rates, and the dollar will remain stable. Much more important, em growth is actually accelerating, and all the big countries except china where it is stable. We are seeing a turn in the earnings cycle. E. M. Surprised on the upside. Earnings revisions are far more positive than they are in japan. Angie but that will end when the fed raises rates. I dont think the fed is the beall and endall for growth for countries in asia. There are many other countries that drive that. Angie but sentiment investors looking for yield, if they increase rates in the u. S. , that is where they will put their money. I think you have to be careful about nominal yields and real yields. If rates come off the floor in nominal terms, that is important. One of the points we made all year on the yen, as deflation settled back in in japan, you actually have deflation in japan, with the short end of the curve for Interest Rates have been higher than in the u. S. That is when you know the nominal rates move in a different direction. Last december, it has been that way. Angie investors seem to believe, kuroda and jackson hole saying he still has a lot more ammunition left, a lot more policy left. Least fromnk, or at morgan stanley, your team thinks the yen can strengthen further. Yes. July. K to i think we paused for reflection on the part of the boj. There was a long study period to find out what they will do on the 20th and 21st. Will expand their qqq e program. This is encountering diminishing returns. Is not thelicy beall and endall in growth. Fiscal policy needs to come for productivity improvements. Ironically, china understands that. They did modesty monetary and fiscal easing which is why the economy is in better shape this time. Most everywhere in the developing world, we have not had enough easing. N,gie was jackson hole a yaw or successful when it comes to guidance . I think theyre trying to keep the markets honest about that. It prompted profittaking today in relation to em, and covering shorts and japan. But you have to get back to structural problems and why we are having the policy debate and what are the limits to Monetary Policy. Angie she did not mention negative yields, but theres a lot of academic argument for negative yield, also diversifying asset purchases. Do you think we will see that in the u. S. In the fed . To behat we can see not on the cards in terms of the debate in the academic community. It has happened. And inpe in a major way, japan. I covered japan to one of the unfortunate episodes that happened this year is negative rates caused a major problem ground credit transmission and bank profitability. There was a backlash from major brinks banks for the boj which is why they entered a study period to figure out whether negative rates do more harm than good. Angie and for the consumer class, it means they have to save more if they want to retire. Theres also the signaling thing around negative rates. When you go to when extreme of actually going to negative rates, it is to an extent a shot to the consumer sector. It is saying, we have a real problem here. We can debate how real the problems are in europe and japan, but i think thats land the american side and the other side of the atlantic, that they are so reluctant to court that. Angie jennison garner, stay right there. Jonathan garner, sera there. We want to get your outlook in the Group Discussion on pmis this week, the jobs report, and the rest of the year. Thank you. Still ahead, fueling the first half. Sinopec outshining its rivals. This is bloomberg. Angie welcome back. You are watching asia edge. Refining came to the rescue for gas in china. The company far outperformed as c energy right what are the results . Stephen downstream been a saying sinopec as opposed to its rivals. The refining side of the business is supply costs, much lower when crude is down. Crude averaged in the first half about 30 . The firstcompared to half a year ago. Hat helped input cost theres also a new policy from the government that put a floor on gas prices at the pump, helping refiners. They are pumping a lot more, or refining a lot more than petro and cnoc. Petrochina company more than double. They really benefited. Petro china and cnoc, we got they werelts lesley, the worst result on record since they listed, which is basically on record. Sinopec outperforming 19. 9 billion yuan profits, 3 billion u. S. Profits. Yearoveryear, but more than double what they did in the second half of last year when they had the worst 2000 angie two. How do they plan on continuing this. They will keep on refining and keep on making gasoline from the crude. They will increase refining three and a half percent. That has been their breadandbutter. And are exploring processing less. They are the three largest producers, but production dropped 11. 5 in the first half. What you will start seeing is more refining beat because margins are fatter there. Angie fat margins. Ok. Have to check that out. Thank you for that, stephen engle. Lets check in on some trading for you right now. Starting in sydney, where we are much, theses pretty predominant story across the regio, as we see the impact of a hawkish fed from jackson hole. Down 1 . This is the view from their t here. Arerally speaking, we seeing the dollar rising on these rate hike signals, especially affirmed by the Deputy Stanley fischer after jackson hole, comments by janet yellen. In hong kong, we are seeing a polluted sky, and a down, dour day as well. But the highlight in the region is japan, after this break. Hey hows it going, hotcakes . Hotcakes. This place has hotcakes. So why arent they selling like hotcakes . With comcast Business Internet and wifi pro, they could be. Just add a customized message to your wifi pro splash page and youll reach your customers where their eyes are already on their devices. Order up. Its more than just wifi, it can help grow your business. You dont see that every day. Introducing wifi pro, wifi that helps grow your business. Comcast business. Built for business. Angie the top stories this hour. Boj governor kurodas affirmation of his commitment to stimulate stocks the economy has boosted japanese stocks. The odds of a rate hike from the afterxt month increased, Janet Yellens comment at the economic symposium in jackson hole. The worlds Biggest Pension Fund may go on a shopping spree, after the value tumbled last quarter. We calculate that Japans Government Pension Investment Fund would need to spend more than 50 billion on domestic shares to meet its goal of having a quarter of the portfolio in stocks. It was at 21 at the end of june. The fund also has room to upload domestic bonds, which are above the levels. Cheap oil for the worlds biggest refiner in the first half. 22 climb ind a profit with net income down to 3 billion. The big tree Energy Companies in china suffered this year. They all have. Petro china sought profits fall 98 , while cnoc announced the first ever halfyear loss. Seized thes the Global Oil Glut continuing and prices staying low. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Lets get the latest in the