Asia Focus

But Mr Rudd has brushed aside those concerns. "Competition questions can be resolved over time," he said. "The stability of the system is of fundamental importance, not just to businesses, but to every working family in the country, every pensioner and carer wants to know the banking system is stable, that's our first responsibility and I don't back away from it." Australian shares closed down 8.3 percent as the global financial crisis drove a fresh round of losses on world stock markets. The Japanese Nikkei index is still down by more than 10 per cent after shedding a massive 11-point-four per cent earlier in the day. The selling frenzy has been repeated all around Asiatic continent, although not with the same intensity. Share prices in Hong Kong, Singapore and South Korea have all dropped by about seven per cent. In the meanwhyle Singapore's government has released figures showing the economy has slipped into recession. The ASX 200 has dropped 297-points to four-thousand-and-24. The Australian dollar has also been hit hard, falling more than six cents from its overnight peak to 65-point-six-six US cents.

China's top negotiator on Taiwan will meet the island's president for the first time, a Taipei official said on Thursday, in what would be a further sign of improved relations between the diplomatic rivals. Ma's Nationalist Party (KMT) ruled all of China until Mao Zedong's Communists won the Chinese civil war and Chiang Kai-shek fled with the KMT to Taiwan. Taiwan is recognised by just 23 countries around the world compared to about 170 that recognise China. China has claimed sovereignty over democratic, self-ruled Taiwan since the end of the Chinese civil war in 1949 and has vowed to bring the island under its rule, by force if necessary. But relations have improved since Ma came to office in May with pledges to boost the local economy by forging new trade and transit links with Beijing.

The two sides will also sign deals on regular flights and direct cargo shipments, PK Chiang, Taiwan's top negotiator on China policy. Chen Yunlin, head of China's Association for Relations Across the Taiwan Strait, would meet President Ma Ying-jeou in Taiwan at the end of October or at the beginning of November. At a landmark meeting in Beijing in June, China and Taiwan agreed to begin direct charter flights Friday through Monday and let as many as 3,000 Chinese tourists visit the island per day. Before direct flights, previously banned for security reasons, travellers would make time-consuming plane changes in Hong Kong or Macau.

China and Taiwan are in talks to add six more Chinese cities to the five that handle Friday-through-Monday flights, and to shorten some of the flight paths. Trade and transit links with fast-growing economic powerhouse China should help lift Taiwan out of a seven-year economic slump aggravated by the global financial crisis. Taiwan is in last place among emerging Asian markets, and these direct flights can add business opportunities. At a round of talks expected in mid-2009, negotiators will discuss investment guarantees, financial relations and double taxation.

The head of the Solomon Islands Leadership Code Commission Emanuel Kouhota has told members of parliament that it is illegal to borrow money from individuals, while in office. The commission is investigating members of the Sikua government for possible misconduct. Local media have reported 18 ministers and backbenchers secretly obtained so-called loans from a prominent Honiara businessman.

The Speaker of the Solomon Islands Parliament, Sir Peter Kenilorea, has told the allegations are serious. "If it is true that such a situation occurred, then all I could say is that I would concur with the view of chairman of the Leadership Code Commission that it would be improper, and that it could be considered as misconduct in office."

Security forces are patrolling the streets of Thailand's capital, Bangkok, in an effort to maintain calm a day after deadly clashes. The leaders of mounting protests in Thailand have been granted bail after turning themselves in on charges related to their campaign to topple the government. A senior People's Alliance for Democracy leader Sondhi Limthongkul says the police have granted him - and six others - bail unconditionally. Sondhi said he was heading directly to the protest camp at the prime minister's Government House offices, which the PAD have occupied since late August. No details were immediately released about the amount of bail. All seven protest leaders had turned themselves in on outstanding arrest warrants on charges of inciting unrest and illegal assembly. The move comes after PAD supporters and police clashed on the streets of Bangkok on Tuesday, with two people killed and hundreds injured. Leaders of the anti-government People's Alliance for Democracy say they will continue their rallies until the elected administration steps down.

A new report shows middle income earners and younger New Zealanders are at risk of debt stress by Christmas. The New Zealand Herald reports Dun & Bradstreet's latest survey of consumer credit expectations shows a debt divide emerging in New Zealand as the global credit crisis impacts spending behaviours. One third of middle income earners and younger people expect to be forced to use their credit card to make ends meet, while one third of high income earners expect to lower their debt levels in the coming three months. The survey conducted last month shows younger New Zealanders and middle income earners face the greatest risk of debt troubles.

Written: by LuisB