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WASHINGTON -- Financial systems in Asia appear well placed to handle the effects of the global financial market turbulence that broke out in July, said a report released by the International Monetary Fund on Friday.The report, Regional Economic Outlook: Asia and Pacific, explained that Asia was not at the epicenter of the recent turmoil, and markets and financial institutions in the region have been less affected to date than those in the United States and Europe."This reflects the relatively small direct exposure to US subprime mortgages and, more broadly, to leveraged and complex structured credit products, including by hedge funds," said the report.But it also warned that markets have begun to normalize somewhat at the time of this writing, although much uncertainty remains.The report expressed optimism about Asia's future economic performance, saying growth has been stronger than expected across much of the region, with domestic demand making an increasing contribution in a number of economies."China and India continued to lead the way, with high growth backed by strong investment, although the contribution of net exports to growth in China continues to rise," said the report."The pace of activity in the NIEs and ASEAN-5 remained solid, with strong investment in the former and strong consumption in the latter," the report added.The NIEs, or Newly Industrialized Economies, refers to Hong Kong and Taiwan of China, South Korea, Singapore. ASEAN-5 refers to Indonesia, Malaysia, the Philippines, Thailand, and Vietnam.China is expected to increase 11.5 percent in 2007 and 10.0 percent in 2008, while India is projected to expand 8.9 percent this year and 8.4 percent next year.The Asian economies as a whole will grow robustly at 8.0 percent this year and moderately to a still-brisk 6.9 percent next year, said the report.

Effective preparations and accurate weather forecasts greatly reduced the number of casualties caused by typhoon Wipha, Zheng Guoguang, head of the China Meteorological Administration (CMA), said on Thursday."Up to now only five people have died from landslides triggered by the heavy rain. The number of casualties is rare in history," said Zheng.The fact that the central government has paid great attention to natural disasters was one of the reasons for the few casualties, while meteorological authorities stepped up forecasts to allow local governments to have time to evacuate people, Zheng added.A total of 2.67 million people in Zhejiang, Fujian, Shanghai and Jiangsu had been relocated by Wednesday, said the Ministry of Civil Affairs. The typhoon destroyed more than 9,600 houses and damaged 42,000 others.In Zhejiang alone, 1.79 million people were evacuated before Wipha struck, the largest mass evacuation in the history of the province. More than half a million were evacuated because their houses were in poor condition.Typhoon Wipha hit Wenzhou, in Zhejiang Province, at 2:30 am Wednesday but was later downgraded to a tropical storm.It turned into a temperate depression at noon on Thursday in the Yellow Sea, and was still weakening, according to the Liaoning Meteorological Observatory.

TOKYO - Japan's Supreme Court on Friday overturned a landmark ruling that had ordered a Japanese company to compensate Chinese who were forced to work as slave labourers during World War Two. It was the first ruling by Japan's top court on whether foreigners forcibly brought to Japan to work during and before World War Two had the right to compensation. A lower court had ordered Japanese construction firm Nishimatsu Construction Co. Ltd. to pay a total of 27.5 million yen (0,000) in compensation to a group of five Chinese for forcing them to labour in Japan during World War Two.

Chinese residents along the Huaihe River have been urged to gear up for their second tough combat against floods in a week as the receding flood water on some branches started rising again on Saturday after torrential rains.The upper-reach Nanwan Water Dam and Shishankou Reservoir have got an average rainfall of 150 mm and 315 mm respectively on Friday, resulting a twist in the ongoing combat against the worst flooding on the Huaihe River since 1954. ¡¡ Chinese Premier Wen Jiabao talks to a child during his visit to the flood-hit Funan County in East China's Anhui Province, July 13, 2007. Continuous heavy rainfall has been battering a large part of eastern and southern China, with some parts witnessing the worst floods in decades. [newsphoto]The water level on the crucial Wangjiaba Hydrological Station may soon surge above the danger line as more rains have been forecast in the next few days, said Cheng Dianlong, deputy director of the Office of the Flood Control and Drought Relief Headquarters. Thirteen sluices at Wangjiaba station were opened Tuesday to divert flood water into the Mengwa Buffer Zone home to 150,000 people to provide relief to more than 2 million flood-hit residents in Henan Province. ¡¡ Nearly half a million people have been evacuated from the projected path of floodwater from the Huaihe River by Friday. Cheng said that the Henan hydrological departments on the upper reaches have made good use of reservoirs and water dams to alleviate pressure downstream Saturday. The flux into the Nanwan Reservoir registered at 2,760 cubic meters per second, however that out of the reservoir was¡¡reduced to 200 cubic meters per second. "The Huaihe riverbanks have been lashed by swelling water for several days. Putting up good defense will become increasingly difficult as more torrential rains are to come," he said. The headquarters issued an emergency notice Saturday to all local governments along the Huaihe River, requiring them to surmount fatigue, remain high alert and carry forward the spirit fostered in battling the 1998 Yangtze River flooding which killed more than 3,000 people and inflicted about 100 billion yuan (about 13 billion U.S. dollars) in economic losses. The notice urged them to take all adverse situations into consideration to reinforce preventive measures, continue to put the human first and safeguard the lives and assets of the people by arranging for relocation in advance. Along the Yangtze River, Guizhou, Hunan and Hubei provinces and Chongqing Municipality have been stricken by floodwater as heavy rainfall had lifted up the water levels of some branches. The Pipazui and Zhengjiahe Hydrological Stations on the tributary Fuhe River have both registered their highest water levels in history. Landslides triggered by mountain torrents killed six and caused three missing in Zhijin County of Guizhou Province, affected more than 673,000 people in Chongqing and inflicted the municipality 182 million yuan in direct economic losses. Some 1,630 people in Jingshan County of Hubei were evacuated in emergency as the water collected in downtown areas were 0.5 to 1.5 meter deep. By Friday, a total of 403 Chinese had been killed with 105 missing and 3.17 million people have been relocated as the rainy season coupled with ferocious flood waters continues to batter central and southern China.

BEIJING -- China regrets that the United States requested the World Trade Organization (WTO) to set up a dispute settlement panel to solve the intellectual property rights (IPR) disputes between the two sides.Wang Xinpei, spokesperson of the Ministry of Commerce, made the remarks in a news conference here Thursday.The Chinese government has always been firm in protecting IPR and tried to solve IPR protection problems through dialogues, Wang said.China has detailed and clarified problems raised by the US and showed great sincerity, Wang said.China's laws regarding IPR protection completely meet WTO requirements, Wang said, adding China is opposed to any WTO member's move of making developing members shoulder extra obligations through dispute settlement system, Wang said.China is studying the US request and will act actively, Wang said.The United States on Monday requested the WTO to establish a dispute settlement panel regarding so-called China's deficiencies in intellectual property protection.The US initiated the dispute over the issue by requesting consultations with China on April 10, 2007.Under WTO rules, the WTO Dispute Settlement Body (DSB) will consider the US request for the establishment of a panel at its next meeting on August 31.