-According to newly released figures, China's foreign reserves plunged a record $32.6bn in January, and a further $1.4bn in February. This is partly attributed to heavy selling of US T-bills and other foreign bonds, capital flight and falling export revenue. Before we get too worried about a loss of Chinese confidence in the dollar, or too excited about the unwinding of macroeconomic imbalances, these same reserves bounced back to the tune of $41.7bn in March.
-China has turned it's increasingly assertive foreign policy to South-East Asia this week with the announcement of a $10bn investment fund for Asean countries. It will also provide $15bn in credit over the next three to five years.
-Thailand's state of emergency is weighing heavily on the baht, while ratings agencies have warned of downgrades to the country's credit rating.
-The UN Security Council has agreed on a statement condemning North Korea's missile launch and calling for the tightening of existing sanctions.
