Due to the soaring price of gasoline and the slumping global economy, sales of new imported vehicles in Japan fell 35.5% in August year-on-year. Sales have dropped for four straight months now, and this drop was the largest since 1998. The sales figure totaled only 11,676 units.

Although financial experts have dispelled the idea of a September crisis, rumors of such a crisis have impacted South Korea's financial markets. This week, the Korean stock market fell more than 4%, and the Korean currency was weaker than its been in almost four years.

The credit rating of 10 mainland commercial banks have increased from last year. Seven banks were rated AAA this year as compared to only five last year. China Merchants Bank went from AA+ to AAA and China CITIC Bank Corp Ltd upgraded from AA to AAA. The increase in banks' ratings were due partly by higher risk resistance and profitability.

Bank of Japan Policy Board member Miyako Suda is pushing for tighter monetary policies by central banks in order to stabilize prices and lower economic growth to a more sustainable rate. According to Suda, lower commodities prices will lead to a stabilized inflation rate. She alluded to higher interest rates to contain prices on oil and raw materials.

After being a net creditor since 2000, South Korea is estimated to have become a net debtor this month. At the end of June, the country's net credit stood at less than $5.8 billion. By the end of July, it dropped to nearly zero. South Korea now faces the danger of many foreign investors cashing out.

According to the Cabinet-level Council for Economic Planning and Development, Taiwan is showing several signs of economic slowdown. Taiwan's economic soundness index was down to 15, the lowest it's been since June of 2003 when SARS took its toll on the island's citizens. The economic soundness index was 20 in June. July's leading indicator dropped for the ninth month in a row to 107.4.

In an effort to maintain steady economic growth, the government aims to steer investment into five key areas including agriculture, energy saving and emissions reduction, economic restructuring, independent innovation, and social undertakings. Furthermore, high-energy consuming sectors will be regulated in how much they can expand. The government will focus on these five areas to help competitive enterprises out of difficulty.

Japan's Toyota Motor Corp. group, Mazda Motor Corp. and Nissan Motor Co. all increased both domestic sales and exports to foreign countries in July. Global economic slowdown had automakers worried that exports would fall in the month of July, but the three major automakers reported no such decrease in exports. Toyota group increased exports by 10.2% and domestic output by 4.7% as compared to one year earlier.

Though planning to lower corporate taxes for business this year, the government and the Grand National Party (GNP) have decided to postpone any lowering of corporate taxes until next year. Fiscal revenues are needed to relieve the economic strain on Korean households. Because of the postponement, W8.4 trillion is expected to be generated.

The budget proposal by the Directorate General of Budget, Accounting and Statistics was approved by the Cabinet. The expense budget for the 2009 fiscal year will be NT$1.83 trillion, a 6.9% increase from the 2008 fiscal year. Expenditure in education, science and culture will use the largest portion of the budget at 18.7%.