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SYDNEY (AFP) – Australia's stock exchange chief lauded a proposed multi-billion-dollar merger with Singapore's bourse, saying the nation was "indebted" to Asia and should seek greater regional integration.

Robert Elstone, chief executive of the Australian Securities Exchange (ASX), said on Saturday the 8.3-billion-US-dollar merger was a "natural competitive and regulatory evolution of Australia's capital markets" as power shifted to Asia.

The bid, announced in October, sparked a strong political backlash in Canberra, where key independent lawmakers questioned Singapore's human rights and democracy record and argued that the deal would disadvantage Australia.

Elstone said the ASX would "in the near future" release information to counter the criticism and show how the proposed merger "advances Australia's national interest."

"As a nation we are indebted to the strength of Asia's industrialising economies and their appetite for our resources -- factors that helped us avoid the worst effects of the global financial crisis," Elstone wrote in The Australian newspaper.

"Yet, despite talk of becoming more integrated with the pan-Asian economy, a transaction to achieve this causes parts of the community to raise the spectre of loss of national sovereignty, without understanding the protection afforded by the existing regulatory framework or the competitive forces that threaten to marginalise ASX if parochialism prevails."

Elstone said the merger would increase the size and diversity of options for investors and reduce costs for listed companies -- "an outcome unequivocally in the national interest."

"The need for additional scale and regional relevance makes ASX's participation in exchange consolidation a mandatory, not an elective, matter for all of its stakeholders, and not just its shareholders," he wrote.

Though it would be the "first major regional exchange group in the Asian time zone", Elstone "emphatically" rejected concerns that governance and regulation of the market would shift to Singapore.

"The Australian operations of the merged group will remain under Australian law and regulated by Australian authorities," he said.

The move, scheduled to be completed in mid-2011, aims to create the world's fifth-biggest exchange with a market capitalisation of about 12.3 billion US dollars as a regional trading hub to rival Hong Kong.

The deal will be reviewed by Australia's securities, foreign investment and competition watchdogs, as well as the central bank, and must be approved by Treasurer Wayne Swan, who has promised "extensive regulatory consideration".

Australia's parliament -- where Prime Minister Julia Gillard holds just a one-vote majority in the lower house -- will then have to pass a bill that would allow ownership of more than 15 percent of the ASX.

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'Aussie' capture rising economic displacement centre world of gravity toward the Pacific region. It was worth half a dollar nine years ago. Photo: AFP

When long-awaited "triple equity" seems Swiss franc imminent.Le is already worth more than a ticket and Canadian dollar apparently poised to penetrate as well.

Rising "Aussie" - widely considered to be a play on the growth of China's history and used by merchants as a proxy for the Chinese yuan - capture the economic mobility centre world of gravity toward the Pacific region.The money was worth half a dollar, just nine years ago.

"Australia says Reserve Bank the economy is now subject to great expansionary terms of trade shock and was relatively modest amounts of capacity réserve.Le risk of inflation increased again in the medium term remains".

Taken by surprise move markets.Credit growth has been cool these past few weeks and inflation is always just the 8pc 2 - to 3 1pc United Kingdom- but the Bank is concerned about the risk of a wage spiral.

HSBC said exporters of commodities and emerging markets such as the Australia opt "of quantitative restrictions" to compensate for the effects of quantitative liquidity facilitate in the United States, thereby causing an influx of money in economies growing rapide.Plusieurs States are playing with capital controls.

Central Bank of the India has also strengthened, raise the rate by a quarter point to 6 25pc.It has imposed draconian housing borders to reduce the "excessive leverage" and prick the bubble, limiting mortgages 80pc of property values.

It reacted with too little too late.

"Interest rates have been negative in real terms of 26 months and strongly negative for several months," said Bhandari Maya of Lombard Street Research.

"Inflation is 9 8pc and will get worse as QE2 fed pushes food prices, a quarter point rate rise will not make a big difference."They are based on administrative measures ' instead of doing what they should do," she says.

Ms. Bhandari said that the authorities had let rip with a "huge monetary and fiscal boost" before the elections in May 2009, leaving a legacy of returning now to hanter.Le deficit of the central budget and combined state - including subsidies on fuel - overheating is almost 11pc GDP.

Team of money-HSBC said that the Australian dollar can be nearly at its peak. "A concern relates to the view of deflation of Chine.Cela property bubble may happen slowly, but if not, the Australian did not avoid the retombées.Une sharp drop in Chinese property prices could very well make a deep review of bubble property the Australia and Australia banks, "they wrote in a client note."

Report says lenders the Australia depend on funding from abroad to support internal explosion in the country, creating a risky incompatibility liabilities. "Rational or irrational, it could turn very sour .the ' appearance of party defined Aussie soon coming to an end, "he said."

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The Australia is booming due to minerals, Asian demand while the India is faced with a massive influx of foreign capital and strong domestic economy.

Surprise move by the Central Bank of the Australia to rate 4 75pc – the first increase since may - thrust Australian dollar above parity with the dollar at $1.0013 that investors expect interest rates to attract more foreign money into the country.

Growth in the country growing, driven by the strong Asian demand for iron ore and other minerals.

Increase rates by the Reserve Bank of the India is the sixth since March that decision-makers are caught between a strong economy and a fragile global economy prompted a flood of foreign money Asia emerging as investors seek paradise of strong growth.

This has pushed stock of dealmaking markets and currencies to dizzying heights, hurt exports and create fears of skimmings shares, real estate, gold markets.

The Reserve Bank of India said increase in global commodity prices coupled with domestic demand pressures, have made inflation concern .the ' September inflation has been above of its recent trend of 5 5pc 5mC 8 6pc.

The India Central Bank raised its repo--6 25pc short-term bank loans rates and rate repo - who pays the Central Bank on bank deposits - 5 25pc rate.

By increasing the rate, the India broke ranks with the Thailand, South Korea Indonesia and the Philippines, who developed rates on hold, more hikes could attract foreign capital even more worried.

Decision of the Australia was unexpected, and most analysts had predicted no there is no change after numbers last week showed lower than expected inflation of 2 4pc in the September quarter.

However, the Bank reserve Australia said in his statement that it expects inflation go higher as a result of the expansion of mining of the country - which is caused by the Asian powers increase in China and the nation as well as advanced as the South and the Japan Korea India.

The Bank says economy the Australia is facing "great shock expansionist" due to the high prices that its exports of mineral are overseas extraction .Termes Australia Exchange - a measure of how much is exported for each dollar of imports - is at its highest since the 1950s, increasing wealth of the country.

"Future research, despite some good results on inflation, the risk of inflation increases again on remnants of medium-term," Reserve Bank Governor Glenn Stevens said in the statement"The Committee concluded that the balance of risks was moved up to the point where a first, modest tightening of monetary policy was prudent".

The Commonwealth Bank of Australia, the largest lender home in the country, responded to rising rates by increasing its floating rate mortgage standard by 0.45 of one percentage point.

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