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Apr-22-2008Asia: Shanghai Rebounds, Tokyo Slips(topic overview)
CONTENTS:
- The Hang Seng index closed higher by 0.9%, or 217.48 points, at 24,939.15, after having dipped 0.8% in the morning session. (More...)
- 'China Mobile is a large-cap stock and it is among the first that moves in any general market movement. (More...)
- Thursday May 1 -Indian stock markets closed on labour day -Labor day public holiday in Sngapore -Japan April auto sales -Japan weekly capital inflows -Australias March building approvals data -Australias Westpac Banking Corp. H1 to March financial results -Australias Alumina Ltd. AGM -Australias GPT Group AGM -Australias Woodside Petroleum Ltd. AGM -EU adopts preliminary draft budget for 2009 -Euro zone April economic sentiment indicator -Euro zone April provisional HICP -EU rules on proposed acqusition by Avivas Delta Lloyd of Swiss Life Belgium -EU rules on proposed acquisition by Tata Motors of Fords Jaguar, Land Rover -EU rules on proposed joint venture between Dow Chemical, Chevron Phillips Chemical -EU rules on proposed acquistion by Oracle of BEA Systems -EU rules on proposed acquisition by Electrabel of CNR -US Weekly jobless claims -US Core March PCE price index -US March ISM manufacturing index -US March construction spending -US March consumer, personal spending -US March auto and light truck sales -US Exxon Mobil Q1 results. (More...)
- China Vanke Co., the biggest listed property developer in the country, slid 20 percent to 20.30 yuan. (More...)
- The third Altimo Index, which evaluates the investment opportunities represented by 80 international mobile telecoms markets has been published and concludes that Asia will remain the mobile investment hotspot until 2010, while emerging markets are a Credit Crunch cushion, with China, India and Russia fuelling growth. (More...)
- Upstream oil firm CNOOC was down 0.2 hkd or 1.45 pct at 13.62 on profit-taking after recent gains on crude price strength. (More...)
- Asian markets were weak after sentiment on Wall Street overnight was dampened by a worse-than-expected 77 percent fall in Bank of America Corp's first-quarter net profit. (More...)
- In China, market heavyweight PetroChina gained only 0.3 percent, after rising more than 3 percent earlier in the day. (More...)
- "China's inflation risk could give way to growth risk within months," writes Hong Kong-based Citigroup economist Yiping Huang in a research note. (More...)
- Some investors also have doubts about a fundamental turnaround in the mainland markets despite China's latest market-friendly measures, Lai said. (More...)
- The new office, Packet Design's first direct presence in the Far East, will work with regional reseller partners to serve customers in China, Japan, South Korea, Taiwan and southeast Asian nations. (More...)
- Nonferrous metals led other decliners, with Aluminum Corp. of China down 1.3 per cent, Jiangxi Copper off 3.6 per cent, Shandong Gold-Mining down 4.3 per cent and Zhongjin Gold down 6.4 per cent. (More...)
- "City boys in Hong Kong are saying: 'We can get our wine in for nothing now'," Mr Staples said. (More...)
- In the past month, China Mobile has soared 27% vs. gains of just 6.7% in PetroChina PTR and 7.4% in HSBC Holdings HBC, for example. (More...)
- Shares of Honda Motor jumped by 8.8 percent, Isuzu Motors added 2.2 percent, Nintendo surged by 6.7 percent, Canon gained by 6 percent and Sony increased by 5.7 percent in Tokyo. (More...)
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The Hang Seng index closed higher by 0.9%, or 217.48 points, at 24,939.15, after having dipped 0.8% in the morning session. Lenovo Group (other-otc: LNVGY - news - people ) shed 2.2%, to 5.84 Hong Kong dollars (75 cents), after IBM (nyse: IBM - news - people ) sold about 116.19 million shares of Lenovo in the morning at 5.61 Hong Kong dollars (72 cents) each to raise $83.6 million, downsizing its shareholding in Lenovo by 1.3%, to 6.5%. The H-shares of China Mobile (nyse: CHL - news - people ) slid 2.1%, to 131.90 Hong Kong ($16.91), as investors cashed in after the telecom operator reported a 37.2% increase in its first-quarter earnings Monday. Other major stock indexes in Asia also drifted down Tuesday, after Bank of America (nyse: BAC - news - people ) reported Monday in the United States that its first-quarter earnings fell 77% (see: "Bank of America Crunched" ) on write-downs and trading losses. [1] HONG KONG (Thomson Financial) - Hong Kong shares finished the morning session sharply higher on Monday, with investors encouraged by China's move to arrest the decline in its stock markets and Wall Street's rally on Friday on better-than-expected corporate earnings. Investors bought U.S. stocks at the end of last week's trade after the nation's top lender Citigroup cut its losses by half to $5 billion in the first quarter from the previous three months.[2]
China's fifth-largest bank, partly owned by HSBC Holdings, had been shortlisted, along with bigger rival Industrial and Commercial Bank of China (OOTC:IDCBF) (ICBC), and Australia New Zealand Banking Group Ltd. (OOTC:ANZBY) to buy a majority stake in Wing Lung, it said. Ping An Insurance (Group) of China lost 5 cents to close at HK$62.90 following a report that China's second-biggest insurer may revise its plan to raise as much as 120 billion yuan on the mainland. Instead of selling shares in China, the insurer may offer up to 20 percent of its stocks in Hong Kong via a share placement, the South China Morning Post reported. ($1 = HK$7.80, 7 yuan) [email protected] - Copyright Thomson Financial News Limited 2008.[3] Hong Kong Exchanges and Clearing dropped 2.1 percent to HK$143.40 after the South China Morning Post reported that the stock exchange operator will require listed companies to file earnings for each quarter instead of twice a year. Ping An Insurance (Group) of China lost 2.1 percent to HK$61.60 following a report that China's second-biggest insurer may revise its plan to raise as much as 120 billion yuan on the mainland. Instead of selling shares in China, the insurer may offer up to 20 percent of its stocks in Hong Kong via a share placement, the South China Morning Post reported. ($1 = HK$7.8) [email protected].[4]
China Construction Bank (CCB) was up 2.6 percent at HK$6.32. Investors brushed aside a Financial Times report Monday that Bank of America is selling some of its 9 percent stake in CCCB to boost its capital. Bank of America may also exercise its option to buy more shares in China's second-largest lender to keep its 'cordial relations with CCB,' it said. Other financial stocks also gained. The mainland's biggest lender, Industrial and Commercial Bank of China (ICBC), rose 2.2 percent to HK$6.0 on speculation it is about to close a deal with shareholders who are selling their stake in Hong Kong's Wing Lung Bank.[2] HONG KONG (Thomson Financial) - Bank of America is selling part of its 9 percent stake in China Construction Bank (CCB) to boost its capital, the Financial Times reported Monday, citing unnamed sources. Although the share price of China's second-biggest lender has fallen 46 percent off its peak recorded in October in the mainland stock markets, it remains above the level in 2005 when CCB was listed, the report said. Bank of America (nyse: BAC - news - people ) may also exercise its option to buy more shares in CCB to keep its 'cordial relations' with the bank,' it said.[5]
'Fubon Bank's share price surge was due mainly to speculation that it might further expand its investments in China after forging a deal to take a 19.9 pct stake in Xiamen City Commercial Bank,' said a Dao Heng Securities analyst. 'Nothing is concrete, but scores of investors opted to buy on the speculation, especially because Fubon is a much larger financial institution relative to its peers in Taiwan,' said the analyst, who did not wish to be named. 'The speculation was also fuelled by expectations that other Taiwanese banks will follow Fubon's move after the recent presidential elections. which will put in place a new government which wants to work closely with Beijing,' he said. Taiwan's Financial Supervisory Commission approved earlier this month Fubon Financial Holding's application for its Hong Kong unit to acquire a 19.9 pct stake in Xiamen City Commercial Bank, which is based in China's Fujian province.[6]
HONG KONG (XFN-ASIA) - Share prices closed sharply higher following a rally on Wall Street, with large-caps, property developers and oil firms providing the main support for the key index. China Mobile was up ahead of its first-quarter results, while property developers gained on news that tycoons Li Ka-shing and Lee Shau-kee have been raising their stakes in their flagship firms. PetroChina was up 3 pct and China Petroleum Chemical Corp (NYSE:SNP) (Sinopec) gained nearly 1.8 pct on news that they will start receiving this month government subsidies to help offset the impact of price controls on processed oil products.[7] Among large caps, China Mobile was up 3.2 hkd or 2.43 pct at 134.7, HSBC was up 1.7 hkd or 1.30 pct 132.4, Hong Kong Exchanges Clearing was up 6.5 hkd or 4.64 pct at 146.5, China Life gained 1.05 hkd or 3.65 pct at 29.8 and Hutchison Whampoa was up 0.6 hkd or 0.79 pct at 76.1. Properties were sharply higher on news that tycoons Li Ka-shing and Lee Shau-kee have been increasing their stakes in their firms. Cheung Kong chairman Li Ka-shing raised his stake in the company to 40.03 pct from 40 pct by buying additional shares, while Henderson Land chairman Lee Shau-kee has raised his stake in the company to 53.41 pct after a series of share purchases, stock exchange data shows.[7]
JPMorgan expects China Mobile to report 33 pct year-on-year rise in first quarter earnings to 23.4 bln yuan. China Southern Airlines was up 0.09 hkd or 2 pct at 4.59 after news that its 2007 net profit surged nearly nine fold to 1.871 bln yuan as the yuan's appreciation and higher passenger traffic helped offset the impact of higher jet fuel prices. Fubon Bank (Hong Kong) surged 1.07 hkd or 15.62 pct at 7.92, extending last week's rally on hopes over its mainland investments.[6] CNOOC was up 0.22 hkd or 1.6 pct at 14.04 amid record crude oil prices. China Mobile was down 2.8 hkd or 2.08 pct at 131.9 on profit-taking after its first-quarter results, with investors worried about a drop in its average revenue per user (ARPU). China Mobile announced yesterday that its first-quarter net profit rose 37.2 pct year-on-year to 24.1 bln yuan on strong growth in revenue, new subscriber numbers and value added services.[8] Kwok said China Mobile's retreat 'contributed significantly' to the market weakness today. He noted that the stock had climbed recently ahead of the first-quarter results. China Mobile announced yesterday that its first-quarter net profit rose 37.2 pct year-on-year to 24.1 bln yuan on strong growth in revenue, new subscriber numbers and value added services. Bit its ARPU fell to 82 yuan in the three months from 91 yuan a year earlier due to the company's push into rural areas.[9]
Lonovo fell sharply, losing 0.33 hkd or 5.53 pct to 5.63 following reports that International Business Machines Corp is offering for sale 116.2 mln Lenovo shares. Tsingtao Brewery was down 0.56 hkd or 2.82 pct at 19.30 after it reported that its 2007 net profit rose to 538.91 mln yuan from 447.86 mln a year earlier. Among companies due to report their results today, China Shipping Development was up 0.30 hkd or 1.13 pct at 26.15, Lingbao Gold was down 0.05 hkd or 1.41 pct at 3.50 and Sinoma was up 0.03 hkd or 0.45 pct at 6.74.[10]
Among local banks, Hang Seng Bank fell 0.80 hkd or 0.53 pct at 150.10, Bank of East Asia was up 0.05 hkd or 0.12 pct at 42.25 and BOC Hong Kong down 0.20 hkd or 1.01 pct at 19.52. Ping An Insurance was down 0.95 hkd or 1.51 pct at 62 following a report that it may revise its plan to raise as much as 120 bln yuan on the mainland's A-shares market and instead offer for sale - via a share placement - of up to 20 pct of its H-shares in Hong Kong.[10] Financials were mostly lower after Bank of America's weak results, with HSBC down 1.3 hkd or 0.98 pct at 131.10, Hang Seng Bank down 0.2 hkd or 0.13 pct at 150.7, BOC Hong Kong down 0.04 hkd or 0.2 pct at 19.68 and Bank of East Asia up 0.1 hkd or 0.24 pct at 42.3.[9]
The survey, taken late last month, covers 500 retail investors in the territory with liquid assets exceeding HK$100,000 and looks at investor intentions for the following six months. The Hong Kong stock market'''s benchmark Hang Seng Index suffered its worst quarter in six years in the first quarter, skidding 18 per cent and taking the shine off a 39 per cent rally last year.[11] Mr Lewis said global equity markets were oversold, creating scope for a short-term rebound but would remain volatile. Given expectations the United States was in recession or headed for one soon, equity markets would probably not start to recover until late this year, he said. At the time of the survey late last month, 53 per cent of respondents said they expected the Hang Seng Index to reach at least 25,000 by year-end. It was nearly there on Tuesday, closing up 0.88 per cent at 24,939.2. Despite their caution, 70 per cent of respondents said they favoured equities over other asset classes and preferred Hong Kong assets, reflecting the fact that economic fundamentals in Hong Kong remain solid despite a weakening global economic environment, JF said. A Reuters poll forecasts Hong Kong'''s economy will grow by a decent 4.6 per cent this year, but well down from 6.3 per cent last year. Only 4 per cent expect to raise their exposure to the U.S. market in the next six months but investors still favoured Asian markets, especially the mainland despite it being highly volatile.[11]
The Hang Seng jumped 217 points, or 0.9%, to 24,939.15, pulled higher by a late surge in China Life Insurance LFC. In Japan, the Nikkei dropped 148 points, or 1.1%, to 13,547.82, as investors mulled a weak trading day overnight in the U.S. "The selloff in A-shares will continue in the short term as new policy released by China's government will encourage investors to sell their stocks as soon as possible. It seems the selloff doesn't have too much pressure on Hong Kong's stock market," said Castor Pang, a buy-side analyst for Sun Hung Kai in Hong Kong. Pang said that the Hang Seng is holding up against the weakness in A-shares because most Hong Kong-listed stocks are already fairly priced and because locals are taking their cues from the performance of U.S. markets rather than domestic Chinese markets.[12] 'U.S. companies are reporting quite good results, so at the moment, the financial markets are more optimistic.' At 10:20 a.m. (0220 GMT), the Hang Seng Index was up 636.93 points or 2.63 percent at 24,834.33. China's move asking investors with locked-up shares to sell them in block trades -- easing downward pressure on the stock markets -- also helped lift sentiment.[13]
The meeting will be held on May 13 in Shenzhen, where China's second-largest insurer is based. Another major shareholder acknowledged Ping An's plan to issue additional shares in Hong Kong. "The insurer is more interested in considering alternative fund-raising channels, given the government's recent initiatives to boost the mainland stock market," he said. After shareholders of both classes - holding H and A shares - overwhelmingly approved the plan to raise funds on the market on March 5, the insurer's initiative was stalled by sluggish investor sentiment. For its next step, Ping An approached its board just before its annual results announcement and won approval for a mandate to issue no more than 20 per cent of existing H shares in the next 12 months.[14] HONG KONG: Hong Kong share prices closed higher on Tuesday, up 0.88 per cent, as China stocks gained in late trade after a recovery in Shanghai, with oil stocks and financials leading the way, dealers said.[15] HONG KONG (XFN-ASIA) - Share prices finished the morning sharply higher following positive leads from Wall Street and mainland bourses, with China Mobile, property developers and oil stocks outperforming.[6]
Much of the gains in China Mobile have been the result of a pre-earnings rally, while Baidu has benefited from investors' associations of the stock with global search-engine leader Google GOOG. Such thinking ignores the reality that these companies derive most of their earnings from domestic Chinese consumption -- a fact that is beginning to be taken into account in Hong Kong, after the release of Chinese data this week. Macquarie's Rocks lists a short trade on consumption stocks as one of his top 10 trades for the week ahead, in a research note issued Friday. As a way of protecting against a potential further spike in equity prices in general, Rocks recommends buying Chinese banks, such as HSBC and Bank of China BACHF.[16] "While concerns about financial system failure are easing and creating a better investing environment, fears about a deteriorating earnings environment will only grow." With surging commodity prices and sharp gains in a few key stocks whose earnings are derived from Chinese consumption growth, this may lead to a short-term reevaluation in the concept of defensive stock plays. Telecom stocks are traditionally considered defensive by investors, because of their apparent resilience to external market factors such as subprime-mortgage defaults. Such gospel has propelled Chinese telco leader China Mobile into a bubble-like orbit vs. key listings in other sectors.[16]
China financials and other mainland counters were mostly lower as the Shanghai bourse remains weak on poor sentiment despite the government's bid to boost that market by adopting a new policy on share lockups. China Mobile fell 2.15 pct despite reporting a 37.2 pct increase in its first quarter to March earnings as its American Depositary Receipt (ADR) price fell in New York overnight. PetroChina and China Petroleum & Chemical Corp (Sinopec) were sharply higher, cushioning the market's fall following gains in their ADR prices and a fresh spike in oil prices.[10] The U.S. markets rallied Friday after quarterly results from Citigroup and Google, while the Shanghai bourse gained today after China said it is imposing restrictions on sale of listed-company shares coming out of lock-ups. China Mobile was up 3.5 pct ahead of its first-quarter results, while property developers were up on news that tycoons Li Ka-shing and Lee Shau-kee have been raising their stakes in their firms. PetroChina was up nearly 3.7 pct and China Petroleum & Chemical Corp (Sinopec) gained over 3.5 pct on news that they will start receiving this month government subsidies to help them offset the impact of price controls on processed oil products.[6]
CNOOC, considered a pure upstream oil play, was up over 2 pct amid high crude oil prices. Fubon Bank (Hong Kong) surged more than 15 pct on hopes that mainland authorities will approve its plan to acquire a stake in a Chinese bank. Dealers said the market was kept in check as the mainland bourses pared their gains after an early surge following news of restrictions on sale of listed-company shares coming out of lock-ups.[7] CNOOC was up 0.44 hkd or 3.25 pct at 13.98 as crude oil prices hit a record 117 usd a barrel in New York trade Friday. Cheung Kong chairman Li Ka-shing raised his stake in the company to 40.03 pct from 40 pct by buying additional shares on April 11, 14 and 15, while Henderson Land chairman Lee Shau-kee has raised his stake in the company to 53.41 pct after a series of share purchases.[6]
Upstream oil producer CNOOC was up 3.84 pct as crude oil prices rose for the fifth consecutive day last Friday to a record 117 usd a barrel in New York trade. China Southern Airlines surged 5.33 pct after it reported that its 2007 net profit surged 786.12 pct year-on-year to 1.852 bln yuan under Chinese accounting standards.[17] China Petroleum Chemical Corp. (NYSE:SNP) (Sinopec) jumped 4.8 percent to HK$7.69. Sinopec said its first-quarter net profit may fall more than 50 percent from 19.42 billion yuan ($2.77 million) a year earlier due to higher crude oil prices abroad. China's'strict control over refined prices' resulted in the 'distortion' of the pricing of its products in the domestic market, the nation's biggest oil refiner said. Crude oil reached more than $117 a barrel, a record level, in New York on Friday after the Organisation of Petroleum Exporting Countries said it may not raise its output.[13] China Mobile slid 2.2 percent to HK$131.80. Asia's biggest cellular phone operator said its net profit surged 37.2 percent to 24.1 billion yuan in the first quarter from a year ago, given the increase in its subscriber base.[18] Index heavyweight China Mobile rose 2.4 percent _ adding to a 4.4-percent rally last week _ on expectations of strong first-quarter results. After the market closed it said its net profit for the three months ended March 31 rose to 24.10 billion yuan (US$3.44 billion; '2.17 billion) from 17.56 billion yuan in the year-earlier period.[19]
Shares of China Mobile increased by as much as 2.4 percent in Hong Kong after the country's largest phone company was speculated to report a 51 percent rise in the first-quarter net profit due to additions of new subscribers and tax changes.[20]
"Youve seen a lot of banks suffering with subprime, but ultimately there is a lot of interest in China and the rest of Asia" and it would be odd for Western banks to abandon that now, said Warren Blight, an analyst at Fox, Pitt-Kelton in Hong Kong. He said, if they really need to raise cash, looking at Asian bank assets may be the way to go. Many U.S. and European banks took stakes in their Chinese counterparts before they went public, and are now sitting on sizable profits even after recent losses in the Chinese stock market, Blight said.[21] That is what analysts and bankers are asking as Bank of America considers lowering its 9 percent stake in China Construction Bank. After reporting $2 billion in write downs related to bad loans Monday, Bank of America executives said they were discussing a sale with the Chinese government. "People may have done these deals at a time when capital was plentiful and hope was abundant, but now they have to be realistic," said John Wadle, Asian bank analyst for UBS in Hong Kong. They should be showing investors that they are making decisions based on "what is core and noncore" business.[21]
Hong Kong's Hang Seng stayed in negative territory most of the trading session, but bounced back late in the day. "Investors are gaining more confidence on the recent rebound in China shares, but it's still too early to say the Hang Seng Index has completely turned the corner," said Y.K. Chan, a strategist at Phillip Asset Management (HK) Ltd.[22] In Hong Kong, the Hang Seng index closed higher by 523.89 points or 2.17 percent to 24,721.67 points, and the Hang Seng China Enterprises Index closed up by 2.7 percent to 13,015.25 points led by the biggest oil refiners, Sinopec adding 1.8 percent and PetroChina gained 3.3 percent in Hang Seng.[20] The benchmark Hang Seng Index ended up 523.89 points at an 11-week closing high of 24,721.67 points on Monday and the China Enterprises Index of Hong Kong-listed companies, or H shares, finished up 2.68 percent.[23] The Hang Seng Index could fall about 200 points on Tuesday, tracking weak overseas markets and after disappointment a rally fizzled out in mainland shares in Shanghai on Monday. China's Shanghai Composite Index jumped as much as 6.8 percent after regulators placed restrictions on sales of shares freed up by the expiry of lock-up periods but it came far off its early high to close just 0.72 percent up.[23]
The Hang Seng China Enterprises index closed up 404.97 points or 3.11 pct at 13,420.22. (1 usd = 7.8 hkd) [email protected] gn/rc - xfngn/xfnrc Copyright Thomson Financial News Limited 2008.[8] The Hang Seng China Enterprises index ended the morning up 367.67 points or 2.9 pct at 13,043.1.[6]
'China Mobile is a large-cap stock and it is among the first that moves in any general market movement. It is likely to continue its uptrend on positive news about its strong first-quarter earnings and prospects of more growth as it goes into the 3G market,' Gorges said. 'PetroChina is not completely out of the woods, but news about the Chinese government's subsidy on its oil refining losses are positive,' he said. Gorges, however, noted that as the key index approaches the 25,000 points level, this may prompt investors to exercise caution. 'Investors will continue to watch the U.S., especially its housing and credit markets,' he said. [17] "The market should follow U.S. shares down and China Mobile, whose ADR dropped 1.5 percent overnight, could drag down the blue chip index," said Francis Lun, general manager at Fulbright Securities. Credit Suisse raised its target on China Mobile share price by 12.3 percent on Tuesday to HK$146, citing improving revenue growth and margins and raising earnings forecasts for 2008 to 2010.[23] The overall gains were tempered by index heavyweight China Mobile, which slid 2.1 percent to HK$131.90 after it reported weaker-than-expected average revenue per user for the first quarter of 2008. Other telecom stock also closed lower.[3] The China Securities Regulatory Commission (CSRC) said it is imposing restrictions on the sale of listed-company stock coming out of lockup periods to boost confidence in the stock market. It will require block trading in cases when more than 1 pct of a listed firm's outstanding shares emerging from lockup are expected to be sold within a month. Shares emerging from lockup cannot be sold in the 30 days before a listed company releases its annual or half-year financial results. China Mobile was up 3.35 pct ahead of its first quarter results after market close today.[17] Analysts said the rise followed Wall Street gains and increased investor confidence that the worst of recent financial turmoil may be over. They warned the financial sector may still have some bad news in the form of possible future write-offs. Gains were across the board, with China Mobile up 2.4 per cent ahead of its first quarter results.[24] CNOOC, China's largest offshore oil and gas producer, was up 1.6 per cent as crude prices stayed above 117 U.S. dollars a barrel. Dealers said the market's gains were capped by China Mobile, which fell more than two percent on profit-taking after its first-quarter results.[15]
JPMorgan has forecast that China Mobile will report a 33 pct year-on-year rise in first quarter earnings to 23.4 bln yuan. PetroChina was up 3.05 pct and China Petroleum & Chemical Corp (Sinopec) gained 3.27 pct after announcing that they expect to receive government subsidies to help them offset the impact of price controls on processed oil products starting this month. They said they also expect to receive a rebate from the government on value-added tax on oil products, such as gasoline and diesel, that will relieve losses in their oil refining operations.[17] China Mobile surged 4.30 hkd or 3.35 pct to 135.90 on expectations that it will report strong earnings for the first quarter after market close.[17]
"The Guidance, in our opinion, does not trim the potential size of large shareholders' inventory shares disposal within the current regulatory framework," said Jerry Lou, a China strategist with Morgan Stanley. "It only prevents conflicts of interest by preventing shares disposal before results disclosure and enforces large trades on the stock exchanges' block trade system to minimize market impact." Morgan Stanley reiterated its view that the A-share market is running into fundamental problems, including earnings deceleration caused by investment income erosion and the hit to earnings margins from high cost inflation in the first quarter.[1] The market initially traded lower, tracking the decline in regional bourses following worse-than-expected corporate results from Bank of America. (NYSE:BAC) Turnover stayed low at HK$87.74 billion. Contrary to expectations, investors did not warm up to China's latest move asking investors with locked-up shares to sell them in block trades to ease downward pressure on the stock markets.[3] The restructured China Re has registered capital of 36.149 bln yuan, with Central Huijin, a wholly-owned subsidiary of sovereign fund China Investment Corp, and the Ministry of Finance holding 85.5 pct and 14.5 pct respectively. The reinsurer said it will consider listing shares in both domestic and overseas stock markets after introducing a strategic investor, although it gave no timetable nor identify potential strategic investors.[25]
A late rally into the green in China sent shares in Hong Kong to an 11-month high Tuesday, as financial stocks helped tug investor sentiment toward the upside after a bearish trading day.[12] HONG KONG: Hong Kong stocks are likely to fall on Tuesday with selling pressure expected on China Mobile and financial counters after Bank of America reported weak quarterly results overnight.[23] Search engine leader Google's higher-than-expected results provided more cheer to a market which had been saddled with fears that the world's biggest economy may slip into a recession due to the housing and financial slump. 'Regional markets are up this morning and Wall Street did well on Friday, so there is no excuse for the Hong Kong stock market not to go up today,' said Howard Gorges, vice chairman at South China Securities.[13]
HONG KONG, Apr. 22, 2008 (Thomson Financial delivered by Newstex) -- Hong Kong shares finished the morning session lower on Tuesday, tracking weak regional bourses as the latest spike in oil prices and worse-than-expected corporate results from U.S. companies revived worries about a slowing global economy.[4] HONG KONG (XFN-ASIA) - Share prices finished the morning session lower as a lackluster Wall Street, weak mainland bourses and record oil prices prompted investors to lock in profits.[9] HONG KONG (XFN-ASIA) - Share prices were lower mid-morning on profit-taking following yesterday's gains, Wall Street's lackluster performance overnight and inflation worries as crude oil prices closed at a record high.[10]
HONG KONG (XFN-ASIA) - Share prices were higher mid-morning on Wall Street's rally Friday and a surge in Shanghai this morning following Beijing's decision to support its sagging bourses.[17]
HONG KONG, April 22 (Reuters) - Hong Kong stocks erased morning losses to finish up 0.9 percent on Tuesday, with Hong Kong-listed mainland shares leading the rally as Shanghai shares rebounded after hitting a 13-month low.[26] HONG KONG, Apr. 22, 2008 (Thomson Financial delivered by Newstex) -- Hong Kong shares closed higher on Tuesday after a late rebound in the Shanghai market triggered a turnaround in local stocks from early declines.[3]
Shares in Hong Kong and Shanghai were also dragged lower in early trade, but later rebounded on gains in Chinese refiners and financial houses.[22] HONG KONG, Apr. 21, 2008 (Thomson Financial delivered by Newstex) -- Hong Kong shares were lower in early trade on Tuesday as investors locked in gains from the previous session after the Dow Jones industrials dropped in overnight trade.[18]
Instead of tapping the A-share market for as much as 120 billion yuan as originally planned, the Shenzhen insurer was considering placing up to 20 per cent of its H shares with investors in Hong Kong, a major Ping An shareholder said.[14] Japan's Nikkei was down just over one percent, but China's CSI 300 ended nearly one per cent higher after recent losses, along with Hong Kong's Hang Seng.[27] One of the most popular wines in Hong Kong is Chteau Lafite Rothschild 2005, which is today trading at about 9,600 ($19,000) per case, up from 3,300 two years ago.The Liv-ex 100, an online index of top wines traded out of London, hit a new high in March the most recent month for which data are available - 34 per cent higher than a year earlier. Simon Staples, sales director at London wine merchant Berry Bros & Rudd, said he had sold 4.6m of wine in the first 36 hours after Hong Kong got rid of import duties of 40 per cent at the end of February.[28] The remainder of the merchant's sales went to UK investors who are expected to hold the wine for six to 12 months before selling it on to Asia. Bordeaux Index, a London-based wholesale wine trader, said its sales to Hong Kong had soared too after the tariffs were dropped. It expects to send 20m of wine to the city this year, double its usual amount. Merchants expect Macao to follow Hong Kong's lead in dropping wine import tariffs, and are hopeful China may also reduce them.[28]
Among large-caps, HSBC lost 0.9 hkd or 0.68 pct at 131.5, Hong Kong Exchange Clearing was up 1.5 hkd or 1.02 pct to 140.0, China Life was up 0.65 hkd or 2.18 pct to 30.45 and Hutchison Whampoa gained 0.25 hkd or 0.33 pct at 76.35. PetroChina was up 0.66 hkd or 6.52 pct at 10.78 and Sinopec was up 0.38 hkd or 5.09 pct at 7.85 on China's move to compensate them for refining sector losses due to China's price controls on processed oil products.[8] China financials were mostly higher, with ICBC rising 0.15 hkd or 2.56 pct at 6.02, China Construction Bank up 0.16 hkd or 2.6 pct at 6.32, Bank of Communications 0.32 hkd or 3.19 pct higher at 10.34 and Bank of China up 0.07 hkd or 1.9 pct at 3.76. Oil counters posted sharp gains on news that both PetroChina and Sinopec will receive Chinese government assistance to relieve losses in their oil refining losses and a rebate on value-added tax on oil products.[17] Lenovo was down over 5 pct on news that IBM is selling more shares of the Chinese personal-computer maker. PetroChina and China Petroleum & Chemical Corp (Sinopec) helped limit the market's losses as the two firms were boosted by China's move to compensate them for losses incurred on refining imported crude oil.[9]
'Fubon Bank's share price surge was due mainly to speculation that it might further expand its investments in China after forging a deal to take a 19.9 pct stake in Xiamen City Commercial Bank,' said a Dao Heng Securities analyst.[7] The A-shares of China's largest lender, Industrial and Commercial Bank of China (other-otc: ICBAF - news - people ), rose 2.5%, to 6.14 yuan (88 cents), after diving more than 3% in the morning session. Metals stocks also regained part of their morning losses, with Jiangxi Copper (other-otc: JIXAY - news - people ) trimming its loss to 3.6%, from 9.1%, to close at 24.92 yuan ($3.56), while Aluminum Corp. of China (nyse: ACH - news - people ), better known as Chalco, closed down 1.3%, to 19.34 yuan ($2.76), after having earlier sunk more than 5%. The China Securities Regulatory Commission on Sunday published its "Guidance Opinion Regarding Listed Companies' Disposal of Unlocked Inventory Shares," requesting that major shareholders of listed companies use off-market trades when disposing of more than a 1% stake in any company over the one-month period following the expiry of its lockup period.[1] Thursday April 24 -Japan Feb all-industries index -Japan 2-year government bonds auction -Japan weekly capital inflows -Japans JFE Holdings FY results -Japans KDDI FY results -Japans Nintendo FY results -Japans Canon Q1 results -Japans Suzuki Motor FY results -Reserve Bank of New Zealand interest rate decision -Caltex Australia AGM -Australias Rio Tinto Ltd. annual general meeting -Singapores STATS ChipPAC Q1 results -Singapores Keppel Corp Q1 results -Indonesias Bank Permata shareholders meeting -Philippine central bank policy meeting -Hong Kong March trade data -Hong Kong-listed China Unicom Q1 results -Hong Kong-listed China Railway Group FY results -Hong Kong-listed China Shenhua Q1 results -Hong Kong-listed ZTE Corp. Q1 results -Beijing Gehua CATV Network Co. FY results -Chinas Weichai Power FY results -Chinas Panzhihua New Steel & Vanadium Co. FY results -Indias Maruti Suzuki India FY results -Indias HDFC Bank FY results -Indias ACC Q1 results -Indias Hindustan Zinc Ltd. FY results -EU-China economic, trade talks -Euro zone Feb current account -ECB Governing Council meeting; no decision on interest rates -ECB conference in Frankfurt -EU rules on acquisition by GDF, Suez of Teesside Power -EU rules on joint venture between Acea, Pirelli Ambiente -US March revised building permits -US Local Area Personal Income, 2006 -US March advance durable goods -US initial weekly jobless claims -US March help wanted index -US March new residential sales -US March state and local building permits -US April Kansas City Fed manufacturing survey -US 3M Co. Q1 results.[29] Q1 results -Singapore March CPI -Singapores Keppel Land Q1 results -Indonesias Bank Niaga shareholders meeting -Indonesias Global Mediacom shareholders meeting -Chinas Chongqing Iron FY results -China COSCO Holdings FY results -Chinas Zhongjin Gold Co. FY results -Chinas Guangdong Electric Power Development FY results -Chinas Huludao Zinc Industry FY results -Chinas FAW Car Co. FY results -Tianjin Faw Xiali Automotive FY results -Chinas Tianjin Faw Xiali Automotive FY results -Chinas Guangxi Guiguan Electric Power FY results -Chinas Baoji Titanium Industry FY results -Chinas Heilongjiang Agriculture Co. FY results -Hong Kong-listed Guangshen Railway FY results -Taiwan March export orders -Taiwan March industrial output -Taiwans Acer Q1 results -Taiwans Nanya Technology Q1 results -ADBs Asia Bond Monitor 2008 launch in Mumbai, India -Euro zone provisional April PMIs -Euro zone Feb industrial new orders -EU rules on acquisition by Altor of Stora Ensos Papyrus -EU rules on acquisition by Statoil of ConocoPhillips JET petrol stations -EU rules on acquisition by Colony Capital of Paris Saint-Germain holding co Colfilm stake -US March NAR existing home sales -US Boeing Co. Q1 results.[29]
Thursday May 1 -Indian stock markets closed on labour day -Labor day public holiday in Sngapore -Japan April auto sales -Japan weekly capital inflows -Australias March building approvals data -Australias Westpac Banking Corp. H1 to March financial results -Australias Alumina Ltd. AGM -Australias GPT Group AGM -Australias Woodside Petroleum Ltd. AGM -EU adopts preliminary draft budget for 2009 -Euro zone April economic sentiment indicator -Euro zone April provisional HICP -EU rules on proposed acqusition by Avivas Delta Lloyd of Swiss Life Belgium -EU rules on proposed acquisition by Tata Motors of Fords Jaguar, Land Rover -EU rules on proposed joint venture between Dow Chemical, Chevron Phillips Chemical -EU rules on proposed acquistion by Oracle of BEA Systems -EU rules on proposed acquisition by Electrabel of CNR -US Weekly jobless claims -US Core March PCE price index -US March ISM manufacturing index -US March construction spending -US March consumer, personal spending -US March auto and light truck sales -US Exxon Mobil Q1 results. [29] Wednesday April 30 -Bank of Japan holds policy board meeting, BoJ governor meets press -Bank of Japan April outlook for economic activity and prices -Japan March unemployment report -Japan March household spending -Japan March industrial output -Japan March housing starts -Japan March construction orders -Reserve Bank of Australia private credit data -Singapore Q1 unemployment -Singapore March money supply data -Singapore March commercial bank lending -Singapores CapitaLand Q1 results -Malaysia March money supply -SKoreas March industrial output -Indias Housing Development Finance Corp Ltd. FY results -US April ADP national employment report -US March employment cost index -US Q1 GDP advance -US April Chicago Purchasing Managers Index -US Procter & Gamble Co. Q3 results.[29]
Wednesday April 23 -Japan March Trade surplus -Australias Q1 consumer price index data -Australia and New Zealand Banking Group H1 to March financial results -Australias BHP Billiton Ltd. Q3 production report -Australias Santos Ltd. Q1 production report -Australias Zinifex Ltd. Q3 production report -Malaysia March inflation -Nestle Malaysia Bhd.[29]
The Shanghai benchmark index finished up 0.99 per cent at 3,147.79 points, recovering after slipping below 3,000 points during the day. "Among H-shares, PetroChina and Sinopec provided key support as both are heavy-weight counters," Yiu said. "Additional support was provided by some China financials, such as China Merchants Bank, which rebounded in afternoon trade, and select local properties like Sun Hung Kai," he said.[15] A technical rebound helped the Shanghai Composite index close up by 1.0%, or 30.82 points, to 3,147.79. The benchmark declined as much as 4.0%, to 2,990.76 points, in early afternoon trading, as investors voted their capital in a display of no confidence in the effectiveness of the government's latest regulatory initiative to prop up China's sliding stock market by capping the supply of A-shares.[1] Howard Gorges, vice chairman at South China Securities, said inflation remains a concern in China, which may prompt the government to adopt more tightening measures. 'The only thing with the Shanghai market is it tends to have short rallies which later subside as it gets affected by fundamentals, such as inflation, or new government measures,' he said. He said investors will exercise caution as the key index approaches the 25,000 points level. 'Investors will continue to watch the U.S., especially its housing and credit markets,' he said.[6]
Japan's Nikkei-225 index, Asia's biggest bourse, ended up 1.63 percent with investors taking heart from a jump on Wall Street. U.S. stocks rallied nearly two percent Friday after investors cheered earnings reports from Citigroup, Google and other big firms, taking them to indicate that a period of intense financial turmoil may be starting to abate. "The fact that the key U.S. financial institutions didn't deliver negative surprises anymore reinforced the view that the global credit crisis may have passed its trough," said Won Jong-Hyuck, an analyst at SK Securities in Seoul.[30] 'Gains in regional markets are helping local stocks, with earnings from U.S. companies (also) among the reasons for investor optimism today,' said Eugene Law, research head at Celestial Asia Securities.[2]
WALL Street pulled back yesterday after a weaker than expected profit report from Bank of America provided investors with a reason to give back some of last week’s strong gains. Bank of America’s news that its first-quarter earnings fell 77% on write-downs and widening credit losses comes after a week in which big-name companies in general turned in better than expected numbers for the first quarter. With little in the way of economic data scheduled to arrive this week, investors are looking at a big flow of corporate reports for insights into the well-being of the economy.[31] 'Market sentiment still needs more time to recover,' said Zhang Xiuqi, an analyst at Guotai Junan Securities. 'The more market-boosting policies, the more confidence,' he added. Major refiner China Petroleum & Chemical Corp., or Sinopec, sank 5 percent after announcing that its net profit probably fell more than 50 percent in the first quarter from a year earlier, due to increasing costs. Both Sinopec and PetroChina _ China's two biggest state-controlled oil companies _ announced Monday that they would receive unspecified 'appropriate' monthly subsidies for losses, retroactive to April 1.[19] China Southern Airlines was up 2 percent at HK$4.59 after surging 8 percent earlier after it reported that it posted 796 million yuan ($113.7 million) in net profit for the first quarter, reversing a loss of 188 million yuan a year ago.[2] The companys net profit in the first quarter rose 37 percent to 24.10 billion yuan (US$3.45 billion; 2.16 billion), from 17.56 billion yuan a year earlier, as it continued to add subscribers.[32]
Bucking the trend China Telecom, the nation's biggest fixed-line operator, advanced 1.9 percent to HK$5.25. The stock rose, despite reporting a fall in its subscriber base in the first quarter, as investors pinned their hopes on the chance that the long-impending industry restructuring will kick off in the current quarter.[3] Confidence among Hong Kong retail investors had been knocked by a drop in stock markets in the first quarter but they still preferred equities to other assets, viewing them as a way to hedge against rising inflation, a JF Asset Management survey shows.[11] SINGAPORE and HONG KONG, 21 APRIL 2008 - The PC market in the Asia Pacific (excluding Japan) grew 19 per cent year-on-year to 17 million units in the first quarter of 2008, according to analyst firm IDC.[33] Hong Kong - Hong Kong stocks rose by 2 per cent Monday on optimism that the worst is over in credit crisis.[24] HSBC fell just over one per cent in Hong Kong, while Mizuho Financial fell nearly five per cent in Japan.[27]
MOST Asian markets rose yesterday, with technology and financial companies gaining in Japan after Wall Street rallied at the end last week. Property developers helped to boost the Hong Kong market, and the Shanghai benchmark gave up most of its early, sharp gains that came with a new regulatory ruling.[31] The Wall Street Journal reported on Monday that the Bank of Communications had exited the race because the Chinese Government did not want two state-owned businesses vying for the same asset. The controlling stake in Wing Lung is owned by chairman Michael Wu and members of his family - one of Hong Kong's most prominent business clans.[34] The lender has pulled out of the bidding process for a controlling stake in Hong Kong lender Wing Lung Bank, leaving only two banks in the race, the Wall Street Journal reported on Tuesday, citing unnamed sources.[4]
Wing Lung, Hong Kong's eighth-biggest bank, was down 2.1 percent at HK$137.[4] Semiconductor Manufacturing International Corp., China'''s biggest chipmaker, added 14 percent to 57 Hong Kong cents.[35] Apr. 21, 2008 (China Knowledge) - Hong Kong stocks dipped slightly on Friday, tracking mainland markets' fall on concerns over further macro economic control measures to curb inflation.[36] Steve Ackley, Packet Design's vice president of worldwide sales, said, "The Hong Kong location is strategic as a gateway to mainland China and Southeast Asia, and having an office there gives us ready access to the growing number of enterprises and service providers who are looking for advanced IP network management solutions.[37] The opening of the Hong Kong office expands a presence Packet Design has already begun to establish in the Asia Pacific region through partners and resellers, including Expernet (Korea), Super Instruments and GuoMai Technologies (China), Ring Line (Taiwan), Alunan Persada (Malaysia) and Toyo Electronics (Japan).[37] One of Europe's fastest growing fashion designers, Cold Method, is teaming up with Retail China Ltd. of Hong Kong to expand in China and Southeast Asia.[38]
Commercial activity was less vibrant, but at least the market can breathe a sigh of relief going forward that the government's Standard Operating Environment tender has finally been awarded." As for Hong Kong, Kathy Sin, research manager of Asia Pacific personal systems research at IDC, said: "Hong Kong's PC market came in close to expectations this quarter despite the flu outbreak in March. As long as the U.S. economy does not pinch the local economy too much, portable PCs should continue to push the market ahead, especially when university student buying kicks in later this year."[33] Chan said any bad news about the slowing U.S. economy and global credit crunch could still weigh on Hong Kong stocks.[22] Asian stocks fall for 1st week in four on global growth concern HONG KONG (Bloomberg) -- Asian stocks dropped for the first week in four amid concern global economic prospects have weakened and financial market losses will continue.[35]
The short-lived jump in Chinese stocks signaled more weakness to come in Hong Kong and Chinese shares, said Francis Lun, general manager of Fulbright Securities Ltd. 'This showed that the market hasn't yet turned for the better. We are still in a bear market,' he said.[19] 'The Chinese government is trying to save the mainland stock market,' said Castor Pang, strategist at Sun Hung Kai (OOTC:SGKAF) Financials. 'It announced that all shareholders of locked-up shares should sell their shares in a special way instead of dumping them all in the stock market.' Airlines, oil companies and financial stocks led the benchmark index higher.[13]
Local investors are likely to pick up any shares foreign banks offload. Their relatively low price "makes them attractive for domestic institutions such as mutual funds, which are sitting on cash pile," said Kanani. Some analysts doubt that American and European banks will do any massive shedding of assets at this time. "These banks are cash flow positive and their cash positions are growing," said Richard Bove, an analyst with Punk Ziegel. "They will reduce employment in businesses where the outlook is weaker." Selling off Chinese banks asset could be politically difficult for American banks, because they have made gains on these deals, while Chinese banks that have bought into American financial companies recently have watched their investments decline in value.[21] Analysts said shares will likely remain volatile in the near term on concerns over the global credit crunch and uncertainties in Chinas share market. "Investors are gaining more confidence on the recent rebound in China shares, but its still too early to say the Hang Seng Index has completely turned the corner," said Y.K. Chan, a strategist at Phillip Asset Management (HK) Ltd.[32] The Hang Seng fell 1.9%, snapping a three-week wining streak, but the index's largest component, China Mobile CHL, surged 4.4%.[16] Hang Seng Index, the benchmark, opened slightly lower at 24,234.53 points in the morning session. The rest of this article can only be viewed by China Knowledge Premium Members.[36] The blue chip Hang Seng Index rose 217.48 points, or 0.88 percent, to 24,939.15.[32] At 10:14 a.m. (0214GMT), the Hang Seng Index was down 261.50 points or 1.1 percent at 24,451.02, reversing Monday's 2.2 percent gain.[18] The Hang Seng index ended the session up 603.04 points or 2.5 percent at 24,800.82.[2]
The Hang Seng index closed up 523.89 points or 2.17 pct at 24,721.67, off a low of 24,668.28 and high of 24,887.11.[7] The Hang Seng index ended the morning up 603.04 points or 2.49 pct at 24,800.82, off a low of 24,756.72 and high of 24,887.11.[6]
The China Enterprises index finished up 339.82 points or 2.68 pct at 13,015.25. [email protected] gn/rc xfngn/xfnrc Copyright Thomson Financial News Limited 2008.[7] In China, the Shanghai Composite index ended 0.7 percent higher at 3,116.98 points led by the shares of some of the recently floated companies like Jinduicheng Molybdenum adding 2.6 percent, China Railway Construction up by 2.8 percent and China Coal Energy gaining by 1.5 percent.[20] Turnover was 28.11 bln hkd. 'The rallies on Wall Street last Friday and in Shanghai this morning provided key support to our market today,' said Howard Gorges, vice chairman at South China Securities. 'Investors now have a more upbeat view on the world's economy and are more comfortable than before,' he said. 'In China, inflation remains a concern which may prompt the government to adopt more tightening measures which may or may not hit its markets. H-shares are generally doing very well today after the government's latest policy move on nontradeable shares,' he said.[17] The China Securities Regulatory Commission on Sunday announced new restrictions on how investors can sell previously non-tradable shares as lock-up periods expire.[19] China's securities regulator imposed restrictions on the sale of listed-company shares coming out of lock-ups, in what is seen as a bid to improve investor confidence. A large number of shares coming out of lockup has been among the factors blamed for the China markets' dismal performance so far this year.[6]
China limits individual foreign investors to 20 percent stakes in local banks, but has discussed raising that limit for securities firms and brokerages. Foreign investors are allowed to own as much as 49 percent of private banks in India, but just 20 percent of state banks, and they need approval for each branch they open.[21] Bank of America, the largest U.S. retail bank, reported a disappointing 77 percent decline in quarterly profit on Monday which rekindled concerns about the impact of credit crisis has spilled over to commercial banks. The bank downplayed a report it might soon sell some of its stake in China Construction Bank to bolster capital.[23] Bank of America bought the 9 percent stake in China Construction bank in 2005 for $2.5 billion. It is now worth several times as much.[21] American Express, Goldman Sachs and Allianz Group paid $3.8 billion for a stake in Industrial and Commercial Bank of China in 2006; Royal Bank of Scotland bought a 5 percent stake in Bank of China for $1.6 billion in 2005; and Citigroup bought 10 percent of HDFC Bank of India in 2006.[21]
China Vanke Co., the biggest listed property developer in the country, slid 20 percent to 20.30 yuan. China'''s stocks fell this week after the central bank raised its reserve ratio requirement to a record 16 percent. Economists expect the People'''s Bank of China to lift its one-year lending rate from 7.47 percent, according to a Bloomberg News survey. [35] China Minsheng, the nation'''s first privately owned bank, tumbled 21 percent to 6.94 yuan.[35]
China financials were higher, with ICBC rising 0.13 hkd or 2.21 pct at 6.0, China Construction Bank up 0.16 hkd or 2.6 pct at 6.32, Bank of Communications 0.34 hkd or 3.39 pct higher at 10.36 and Bank of China up 0.07 hkd or 1.9 pct at 3.76.[6] China banks were also down, with ICBC losing 0.0.01 hkd or 0.17 pct at 5.97, Bank of Communications down 0.02 hkd or 0.19 pct at 10.26 and China Construction Bank shedding 0.10 hkd or 1.57 pct to 6.25.[9]
Among oil firms, PetroChina was up 0.3 hkd or 3.05 pct at 10.12, Sinopec gained 0.13 hkd or 1.77 pct at 7.47 and CNOOC added 0.28 hkd or 2.07 pct at 13.82. China Mobile was up 3.2 hkd or 2.43 pct at 134.7 ahead of its first-quarter results.[7] Airlines were mixed amid oil price worries, with Cathay Pacific shedding 0.04 hkd or 0.25 pct at 15.66 and China Southern down 0.02 hkd or 0.43 pct at 4.58 while China Eastern was up 0.09 hkd or 3.14 pct at 2.96 and Air China gained 0.07 hkd or 1.34 pct at 5.29.[9] Oil counters traded mixed as crude oil rose 79 U.S. cents to close at a record 117.48 usd a barrel. PetroChina gained 0.24 hkd or 2.37 pct at 10.36 and Sinopec was up 0.23 hkd or 3.08 pct at 7.70 as their ADR prices rose overnight in New York.[10]
Cheung Kong was up 3.9 hkd or 3.37 pct at 119.5, Henderson Land was up 2.1 hkd or 3.71 pct at 58.7, Sun Hung Kai (OOTC:SGKAF) Properties was up 4.2 hkd or 3.32 pct at 130.8 and New World Development gained 0.56 hkd or 3.09 pct at 18.68.[7]
China Southern Airlines surged 0.22 hkd or 4.89 pct to 4.72 after reporting strong earnings last year. Yanzhou Coal Mining Co Ltd gained 0.74 hkd or 6.41 pct at 12.28 after it reported a 36 pct year-on-year rise in its 2007 net earnings.[17] China Mobile lost over 2.8 pct on profit-taking after reporting a 37.2 pct jump in first-quarter earnings, as investors were worried that the mobile operator's average revenue per user (ARPU) could drop further as it pushes into China's rural areas.[9] China Mobile CHL lagged behind after the telco leader announced that it missed earnings estimates Monday, and dropped 2.1%, to HK$131.90.[12]
Bigger rival China Mobile rose 3.6 percent to HK$135.90. ($1 = HK$7.80) [email protected].[13] Heavyweight China Mobile fell 2.1 percent to HK$131.90 on profit-taking, after rising 6.9 percent over five days.[32]
China Unicom, The mainland's second largest mobile operator, lost 0.7 percent at HK$16.58.[3]
Yu said that China Petroleum Chemical Corp (Sinopec) will be a bigger beneficiary of any rebates on subsidies given to refiners. Asia's biggest refiner imports 70 percent of its crude oil needs. Sinopec jumped 5.1 percent to HK$7.85.[3] Petrochina was up 6.5 percent at HK$10.78, adding to Monday's 3.1 percent gain. 'There is no specific reason for the stock to move higher, it's a combination of factors including high oil prices and refining subsidies. Mostly it's because Petrochina's stock is quite attractive at its current valuation,' said Anna Yu, energy analyst with Tai Fook Securities.[3] Asian stocks rallied sharply on Monday despite near-record-high oil prices as hopes grew that the worst of the global financial crisis may be over.[30]
'Wall Street had a lackluster performance last night and sentiment in Shanghai remains poor,' Gorges said. Gorges noted that gains by PetroChina and Sinopec following a fresh spike in oil prices and an increase in their ADR prices were providing some cushion to the market's fall. 'It's hard to say the extent to which the continuing rise in oil prices is affecting investor sentiment,' he said. 'That oil price spikes are stoking global inflation has been talked about for quite some time and price movements in future are anybody's guess.[10] Howard Gorges, vice chairman at South China Securities, said high oil prices are stoking worries over global inflation.[9]
The oil price reaches a new record high above $117 per barrel, as world oil ministers and oil company executiv.[32]
Lenovo was down 0.13 hkd or 2.18 pct at 5.84 on news that IBM is selling another 116.2 mln shares of the Chinese firm in a placement deal at 5.61-5.76 hkd per share.[8] Lenovo (OOTC:LNVGY) was down over 2 pct on news that IBM (NYSE:IBM) is selling more shares of the Chinese personal-computer maker.[8]
Computer maker Lenovo was down more than two percent on news that IBM is selling more shares of the Chinese personal-computer maker. "The Shanghai market rebounded this afternoon, providing momentum to H-shares and helping the overall market turn around from weakness in morning trade," said Patrick Yiu, associate director at CASH Asset Management.[15] Shares of National Australia Bank added 6.2 percent, Australia & New Zealand Banking gained by 7.2 percent, Westpac Banking gained 6.5 percent, Commonwealth Bank was up by 5.4 percent and Macquarie Group climbed 3.1 percent in Sydney.[20] In machinery industry, shares of Hitachi Construction Machinery Co. rose by as much as 5.6 percent, while Kubota Corp. surged by 7.1 percent. In technology, Japan's largest personal-computer maker, NEC Corp. gained by as much as 7.3 percent after the firm reported that its annual operating profit surged by 15 percent more-than-its-forecast. Japan's biggest bank by market valuation, Mitsubishi UFJ Financial group surged to its three-month high by as much as 3.5 percent in Tokyo, after Citigroup posted a narrower loss.[20]
BANGKOK, Thailand — Asian markets were mixed Tuesday, with Bank of America's worse-than-expected performance in the first quarter pulling down financial shares and dragging Japanese stocks to their first loss in six sessions.[22] A Thomson IFR Asia report that International Business Machines Corp. is selling shares in Chinese personal computer maker Lenovo Group worth about $85 million also discouraged investors from buying stocks.[39] Indian bank stocks are trading well off of recent peaks, with the Indian banking sector index down at levels last seen in July of 2007. "I as an investor would not exit at this point unless the need for cash is pressing," said Bhavesh Kanani, a research analyst with Sharekhan, a brokerage based in Mumbai.[21] Traders in Japan said Bank of America's 77-per cent plunge in first-quarter net income from a year ago prompted investors to dump stocks.[22]
Fine wine prices have soared over the past year as increasingly wealthy consumers in Asia and Russia start collecting wine. Prices have also been driven up as new investors, such as hedge funds and investment banks, come into the wine market.[28]
The demand for fine wine in Asia has sent the price of the best French vintages to new highs as buyers in Hong Kong take advantage of the territory's recent scrapping of high import tariffs.[28] Hong Kong may move higher depending on news that will come from the U.S. overnight but it won't be smooth (sailing), there is bound to be a lot of fluctuations during the day,' said Conita Hung, research head with Delta (NYSE:DAL) Asia Securities.[3]
In Hong Kong, Sun Hung Kai Properties rose 3.3 percent, Hang Lung climbed 2.5 percent and New World Development added 3.1 percent.[19] In Japan, the Nikkei gains 252 points, or 1.9%, while the Hong Kong Hang Seng rises 381 points, or 1.6%.[16] "The Hang Seng's range is getting tighter, at 23,700 to 25,000," says Steven Wong, a trader at Daiwa Securities SMB in Hong Kong.[16]
"Earnings risk is rising," says Tim Rocks, chief Asia strategist at Macquarie Bank in Hong Kong.[16] ANZ's chase for control of Hong Kong retail bank Wing Lung is down to a two-way battle.[34]
Hong Kong shares also turned around, if more prosaically, on Tuesday, following the late rebound in the Shanghai market.[1] "The insurer will table the idea at the coming annual general meeting," said the shareholder, who asked not to be named. He said a notice about the meeting sent to shareholders recently contained a proposal to place shares in Hong Kong.[14]
The firms announced an exclusive 20-year deal for Retail China to introduce and develop retail channels for Cold Method in China, Hong Kong, Macau and Singapore.[38] The retail company is looking to develop a combination of channels including retail China owned and operated Cold Method flagship shops, department store shop-in-shops, online retailing and distribution agreements through retail chains in Hong Kong and Singapore.[38] BEIJING (XFN-ASIA) - China Reinsurance (Group) Co said it has launched a representative office in Hong Kong.[25]
In Hong Kong, Chinese oil refiners rose on the governments plan to compensate oil refining companies for losses from processing imported crude oil.[32] 'The rebound in the Chinese markets seems to have helped trim losses in Hong Kong, too.[3]
The market in Hong Kong was 2.5 percent higher and Australia closed up 3.1 percent.[30] Alibaba.com ALBCF, another tech stock listed in Hong Kong, has lost 5.6% in the same period that Baidu has jumped.[16] As a world financial hub, Hong Kong also offers us a unique opportunity to be close to customers and prospects in the financial services arena, a key market for route analytics."[37] Managing the Hong Kong office is Patrick Li, a 10-year networking industry veteran, who has joined Packet Design as systems engineering manager for Asia Pacific and Japan.[37] PALO ALTO, Calif. - (Business Wire) Packet Design, the pioneer in route analytics technology for managing large IP networks, has opened a sales and support office in Hong Kong to handle its growing base of customers in Asia.[37]
Hong Kong's currency is pegged to the greenback, making the economy of the former British colony particularly sensitive to negative sentiment on the U.S. economy.[24]
The MSCI Asia Pacific Index dropped 0.9 percent to 144.36, snapping a three-week, 7.2 percent rally. The MSCI gauge has lost 8.5 percent this year amid speculation the U.S. economy will fall into a recession as losses at financial companies related to investments in sub-prime mortgages increased.[35] The crisis caused a global credit crunch and on IMF estimates could lead to losses approaching one trillion dollars. Chinese shares, for instance, slumped to nearly 50 percent below their peak from October last year after a slide of some four percent Friday before the U.S. market opened.[30] '''We are in a period of volatility,''' said Pankaj Kumar, who manages about $460 million as chief investment officer at Kurnia Insurans Bhd. in Petaling Jaya, outside Kuala Lumpur. '''They'''re confirming what'''s been expected, the U.S. is perhaps in a recession, Europe is taking a bit of a hit, so is Japan.''' General Electric Co., the world'''s biggest maker of power- plant turbines, jet engines and locomotives, said first-quarter earnings plunged 12 percent because of failed asset sales and losses at its finance businesses. Losses in Asian shares were capped this week after Jamie Dimon, JPMorgan Chase & Co.' s chief executive, and Richard Fuld, CEO of Lehman Brothers Holdings Inc., said the worst of the credit crisis is past.[35]
Japanese financial shares rose as investors took heart from Citigroup Inc.' s better-than-expected earnings results.[19] Japanese financial shares rose as investors took heart from Citigroup’s better than expected earnings results.[31]
Investors are quite unhappy about the recent earnings report and share placments and are cautious about the outlook on the overall economy,' said Peter Lai, investment manager at DBS Vickers.[4]
'Local shares got a big boost from Wall Street's rally and a strong rebound on mainland markets,' said Peter Lai, a director at DBS Vickers. Investors refrained from pushing the upside too much as they await key U.S. economic indicators this week, he said.[6] Jamie Spiteri, head of trading at Shaw Stockbroking in Sydney, said that belief was growing that while share prices could be unsteady, "there is an underlying bias that the worst may actually be out of the way." Other experts said some Asian markets could continue going up if the mood on Wall Street stayed upbeat and sent the U.S. Dow Jones index higher.[30]
While the U.S. markets are exporting gains to the Nikkei and specific Chinese consumption-related equities, China's Shanghai Composite Index is dropping like a stone.[16] China's Shanghai Composite closed up 31 points, or 1%, to 3147.79, after the index fell through the 3,000-point benchmark intraday for the first time in over a year.[12] The Shanghai market's benchmark index closed up just 0.72 pct at 3,116.98, after hitting a high of 3,305.17 in early trade. 'The surge in mainland A-shares this morning proved to be just a technical rebound after the so-called new market-supporting measures,' said Linus Yip, a strategist with First Shanghai Securities.[7] The Shanghai market's benchmark index ended the morning up 1.75 pct at 3,148.94, off a high of 3,305.17 points.[6] Analysts said shares in Shanghai bounced back in a technical rebound after the exchange's composite index dipped below 3,000. "It looks like a short-term technical rebound, since 3,000 points is a psychological benchmark," said Zhai Peng, a strategist at Guotai & Junan Securities, in Shanghai. "I don't think it will be sustainable," he said of the late rally.[22]
The company's H shares closed 5 per cent higher at HK$62.95. It was the biggest blue-chip gainer. Its A shares in Shanghai rose 3.17 per cent to 57 yuan (HK$63.49), bucking the bearish market.[14] The mobile giant reported lower-than-expected first-quarter results late Monday, though with profit still rising 37 per cent from a year ago to 24.10 billion yuan (US$3.45 billion; ''2.16 billion).[22] Mainland heavy truck manufacturer Sinotruk rose 0.14 hkd or 1.8 pct to 7.91 after reporting a 2007 net profit of 1.11 bln yuan against 638 mln a year earlier.[6] Gold and metals were higher, with Zijin Mining up 0.06 hkd or 0.84 pct at 7.19, Zhaojin Mining up 0.36 hkd or 2.79 pct at 13.28, Angang Steel up 0.64 hkd or 3.67 pct at 18.1 and Chalco up 0.4 hkd or 3.24 pct at 12.76. Tsingtao Brewery (OOTC:TSGTY) was up 0.04 hkd or 0.2 pct at 19.9 after reporting that its net profit rose to 538.91 mln yuan last year from 447.86 mln a year earlier.[8]
Yanzhou Coal gained 0.66 hkd or 5.72 pct at 12.2 after reporting a 36 pct rise in 2007 net profit.[7]
Cathay Pacific was up 0.14 hkd or 0.89 pct at 15.84, China Southern was up 0.16 hkd or 3.48 pct at 4.76, China Eastern added 0.25 hkd or 8.71 pct at 3.12 and Air China gained 0.40 hkd or 7.66 pct at 5.62.[8] China Southern was up 0.24 hkd or 5.33 pct at 4.74 after reporting a surge in 2007 earnings.[17] Mainland property plays were sharply higher, with Agile Property surging 0.40 hkd or 4.88 pct to 8.59, Guangzhou R&F; rising 0.44 hkd or 2.43 pct to 18.58 and China Overseas Land up 0.48 hkd or 3.27 pct at 15.14.[17]
China Re, which has an over 80 pct share of the country's reinsurance market, booked 2007 operating revenue of 44.466 bln yuan, up 47.8 pct. It has property insurance, asset management, and insurance brokerage businesses, apart from core reinsurance operations.[25] Bargain hunting in banks and property developers boosted Chinas shares Tuesday.[32]
China's fifth-largest bank, partly owned by HSBC Holdings, had been shortlisted, along with bigger rival Industrial and Commercial Bank of China (OOTC:IDCBF) (ICBC), and Australia New Zealand Banking Group Ltd. (OOTC:ANZBY) to buy a majority stake in Wing Lung, it said.[4] The insurer also might opt for a private placement to select banks, including Postal Savings Bank of China and China Construction Bank (SEHK: 0939, announcements, news ) Corp, the China Times reported yesterday.[14]
China Minsheng Banking Corp. led declines among China'''s stocks after the central bank said there'''s room to raise borrowing costs.[35] Locally-listed China stocks have decoupled somewhat from A-shares, Yip noted. Peter Lai, a director at DBS Vickers, said investors refrained from pushing the upside too much as they await key U.S. economic indicators this week.[7] '''Understandably, given increased worries over the health of the U.S. economy; and the broader credit crisis not going away anytime soon; and tightening measures in China, it is not surprising that the investor confidence index has taken a tumble,''' Geoff Lewis, head of investment services at JF Asset Management, told a press conference on Tuesday.[11] 'The local bourse will likely (move within) 21,000 to 25,500 in the near term as investors want to have a clearer reading on the the U.S. economy,' Lai said. He sees the index facing strong resistance at the 26,000 level in the near term.[6]
Kirill Babaev, Altimo Foundation CEO, concluded "The Altimo Index clearly outlines that the current slowdown in the U.S. and other highly developed countries is cushioned by robust growth in emerging economies. Altimo'''s focus on these markets has enabled it to double its assets''' value to $30 billion last year, and as this Altimo Index shows, there are still plenty of opportunities within less developed mobile markets in the near future."[40] Credit Suisse analyst James Ellis is less optimistic about the ANZ's first half performance and is forecasting cash earnings to fall to $1.67 billion. Mr Ellis believes ANZ is likely to outperform other banking stocks in the next year because of continuing strong growth in its personal banking business.[34]
The airline carried 13.98 million passengers in the first three months, 11.2 percent more than a year ago. Separately, China Southern Airlines said its Xiamen Airlines unit will acquire 20 Boeing B737 series aircraft at $75 million each. Other airlines were also higher.[2]
PetroChina surged more than 6.5 per cent and China Petroleum and Chemical Corp (Sinopec) was up more than five percent on China's move to compensate the two firms for losses incurred on refining imported crude oil.[15] Heavyweight China Mobile fell 2.1 per cent on profit-taking, after rising 6.9 per cent over five days.[22]
Heavyweight HSBC also kept the key index in check as it lost nearly 0.7 per cent after Bank of America reported a 77 per cent drop in first-quarter earnings overnight.[15] The Shanghai Composite Index rose 1 per cent to 3,147.8 after dropping more than 3 per cent.[22] The Shanghai Composite Index rose 0.7 percent to 3,117.0 after surging nearly 7 percent in early trading.[19] News of the restrictions initially pushed the Shanghai Composite Index up as much as 6.8 percent, but then lingering concerns over macroeconomic tightening narrowed the gains.[19]
The benchmark Shanghai index closed 1 percent higher at 3,417.79, after dropping more than 3 percent.[32] Elsewhere in Asia, the main benchmark in Australia, the S&P;/ASX 200 index rose 3 percent, while the main indices in India, Singapore and South Korea rose around 1.5-1.6 percent.[19] The benchmark Hang Seng Index.HSI rose 217.48 points to close at 24,939.15.[26] The benchmark Hang Seng Index closed at 24,721, a rise of 523 points on Friday's close.[24]
The Hang Seng index closed up 217.48 points at 24,939.15, off a low of 24,413.25 and a high of 24,965.74.[15]
Following today's surprise gains analysts expect the Hang Seng Index to break the 25,000-point barrier on Wednesday.[3]
The third Altimo Index, which evaluates the investment opportunities represented by 80 international mobile telecoms markets has been published and concludes that Asia will remain the mobile investment hotspot until 2010, while emerging markets are a Credit Crunch cushion, with China, India and Russia fuelling growth. [40] Eastern and South Eastern Asian mobile markets remain most favourable for investors due to continued rapid user growth and mobile spending driven by strong macroeconomic performance. As with the first two indices, the third Index explicitly demonstrates this as a continuing theme.[40] In the quarterly survey, the JF Investor Confidence Index fell to 117 points, from 130 points in the previous survey, and its lowest reading since the index was launched in July 2006, JF Asset Management said.[11]
In Australia, the S&P;/ASX 200 index climbed up by 3.1 percent to 5,600.30 points led by the financial firms.[20] In Japan, the Nikkei 225 average increased by 220.10 points or 1.63 percent to 13,696.55 points, while the broader Topix index closed 2.1 percent or 27 points higher to 1,331.51 points, led by exporters and machinery makers.[20]
Properties were higher, with the sectoral index up 362.01 points or 1.18 pct at 31,153.24.[8]
Upstream oil firm CNOOC was down 0.2 hkd or 1.45 pct at 13.62 on profit-taking after recent gains on crude price strength. [9] Among large-caps, HSBC fell 1.20 hkd or 0.91 pct at 131.20, HKEx was down 2.0 hkd or 1.37 pct to 144.50, China Life was 0.10 hkd or 0.34 pct lower at 29.70 and Hutchison Whampoa was down 0.05 hkd or 0.07 pct at 76.05.[10] PetroChina surged more than 6.5 pct and China Petroleum Chemical Corp (NYSE:SNP) (Sinopec) was up over 5 pct on China's move to compensate the two firms for losses incurred on refining imported crude oil.[8] Asia's biggest oil and gas company said it will receive a subsidy from China's Ministry of Finance starting April 1 due to losses from higher refining and processing costs of imported crude oil. It also expects to get a refund in the second quarter of the value-added-taxes it has paid.[13] OPEC produces some 40 percent of the world's oil and there have been intensifying calls for it to pump more black gold as concerns grow worldwide about high inflation, driven in part by soaring food and fuel costs. Investors in Asia have been worried that high inflation could force governments to take steps to curb economic growth, but those concerns took a back seat on Monday.[30] The shares surged by a record 42 percent on April 15 on speculation the company would name an investor to buy a stake, and then fell the next day by a record 19 percent after saying it hasn'''t made a decision on the sale.[35] Foreign investors own 40 percent of the largest private bank in India, ICICI Bank, and 26 percent of HDFC Bank. Whether Bank of America will actually sell its 9 percent stake, and start an exodus, is still unclear.[21]
Asian markets were weak after sentiment on Wall Street overnight was dampened by a worse-than-expected 77 percent fall in Bank of America Corp's first-quarter net profit. [39] The Dow declined 0.2 percent after Bank of America Corp. (NYSE:BAC) reported a worse-than-expected 77 percent drop in first-quarter net profit as it had to set aside more funds to cover losses from unpaid housing loans.[18]
Financials were down after Bank of America reported a 77 pct drop in first-quarter profit due to write-downs and widening credit losses, with heavyweight HSBC shedding nearly one pct.[9] Adding to the negative tone in the financial sector were results from Bank of America, which reported a 77% drop in quarterly profit.[31]
PetroChina PTR jumped 6.5%, to HK$10.78, and Sinopec Shanghai Petrochemical SHI leapt 5.1%, to HK$7.85, after it was announced that Beijing may provide subsidies to offset the companies' declining profit margins on downstream operations as a result of domestic Chinese price caps.[12]
Fixed-line phone operator China Telecom fell 1.4 percent after reporting flat first-quarter net profit as it lost subscribers to mobile-phone competitors.[4] The telecom giant late on Monday reported a 37 percent rise in quarterly net profit, slightly shy of forecasts.[23]
Asia's second-biggest container line posted net profit of 488.05 million yuan in the first three months of the year. It did not provide a comparative figure.[4] Lenovo remained the top PC vendor in the region despite the Lunar New Year slowdown. "Despite concerns about the U.S. economic slowdown rippling through to other parts of the world, the PC market in Asia continued to steam ahead in the first quarter," said Bryan Ma, director of Asia Pacific personal systems research at IDC. "That doesn't mean that Asia is in the clear.[33] Any further tightening in the U.S. may negatively impact a number of export-heavy markets in the region later in the year. For now, IDC believes that the Asia Pacific PC market is on track for 17 per cent growth in 2008, especially if portable PCs continue their relentless push into the market."[33]
Earnings for the six months to the end of March are expected to fall at least 10 per cent on the 2007 first-half result due to higher bad debt charges.[34] Selling blocks on Thursday are still showing investor eagerness to offload, given the opportunity." While economic data from China this week showed that retail sales are rising at a healthy pace, inflation is still far from under control at 8.3% for March. That may translate into unaccounted-for pressure on earnings going forward, analysts say.[16] Wall Street's gains came as Citigroup and Google Inc's first-quarter earnings results eased investor worries over the health of America's largest corporations.[17] Despite the robust gains there, traders in Tokyo said investors would likely trade with caution for the rest of the month ahead of earning reports from Japanese companies.[19]
Analysts said investors now appeared to be less fearful of the financial crisis and predictions of a U.S. economic recession, buoyed in part by the better-than-expected corporate earnings reports.[30] Some London-based traders are finding the U.S. a good source of wines as the credit squeeze puts financial pressure on some collectors.Stephen Williams, chief executive of Antique Wine, said the U.S. had become "a major source market" over the past six months.Mr Williams recently sold a collection of Domaine de la Romane-Conti, mostly bought from a U.S. client, to a Chinese investor for $500,000.[28]
The U.S. economy may suffer a technical recession. That's why investors are on a wait-and-see mood,' said Daniel Chan senior investment strategist at DBS Bank.[18]
Stocks were mixed throughout the Asia region on Tuesday with the banking and technology sectors dragging on the markets, after the Bank of America disappointed with its results out of the U.S. on Monday.[27] The stock market will decline 'in reaction to the share placement and the performance of overseas markets yesterday,' said Conita Hung, research head at Delta Asia Securities.[18] The mainland securities regulator announced a move to bolster the fragile stock market.[14]
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms.[26]
Shares in India, Malaysia, Indonesia and New Zealand were trading higher too, but Taiwanese stocks closed little changed while the small Philippine market bucked the trend to end the session lower.[30] Lenovo was down 0.13 at 5.84 on news that IBM is selling another 116.2 million shares of the Chinese firm.[15]
Despite the fall in operating earnings the bank is expected to declare an interim dividend of 62c a share, the same as in 2007.[34] The Dow Jones industrial average finished down 0.19 pct after Bank of America reported a worse-than-expected 77 pct decline in first-quarter earnings due to credit market troubles.[9] Yanzhou Coal gained 0.74 hkd or 6.41 pct at 12.28 after reporting a 36 pct rise in 2007 net earnings.[6] Zijin Mining rose 0.12 hkd or 1.63 pct at 7.49, Lingbao Gold was up 0.03 hkd or 0.86 pct at 3.53 and Chalco gained 0.30 hkd or 2.48 pct at 12.40.[17] Cheung Kong rose 3.0 hkd or 2.6 pct to 118.60, Henderson Land was up 1.55 hkd or 2.74 pct higher at 58.15, Sun Hung Kai was up 4.60 hkd or 3.63 pct at 131.20 and Sino Land advanced 0.52 hkd or 2.88 pct at 18.58.[6]
The placing price represents a discount of up to 6 pct to Lenovo's closing price of 5.97 hkd yesterday.[8] PetroChina gained 0.30 hkd or 3.05 pct at 10.12, CNOOC was up 0.52 hkd or 3.84 pct at 14.06 and Sinopec surged 0.24 hkd or 3.27 pct to 7.58.[17] Zijin Mining lost 0.12 hkd or 1.63 pct at 7.25, Lingbao Gold was up 0.03 hkd or 0.86 pct at 3.53 Zhaojin Mining was down 0.16 hkd or 1.23 pct at 12.86 and Chalco gained 0.26 hkd or 2.15 pct at 12.36.[6]
In China, market heavyweight PetroChina gained only 0.3 percent, after rising more than 3 percent earlier in the day. [19] China Southern Airlines, the nation's third-largest carrier, rose 3.1 percent to HK$2.99.[13] Air China surged 7.7 percent to HK$5.62 while China Eastern Airlines rallied 8.7 percent to HK$3.12.[3] China's biggest insurer China Life Insurance rallied 4.2 percent to HK$29.95.[2]
Financials fared well, with China Life Insurance staging a late-session rally to finish up 2.2%, at HK$30.45.[12]
"China's inflation risk could give way to growth risk within months," writes Hong Kong-based Citigroup economist Yiping Huang in a research note. "The first-quarter GDP data, which slowed to 10.6%, from 11.2% in the previous quarter, offers the first piece of evidence of such downside risk." [16] '''Valuations are looking more attractive in China, but we can'''t see beyond two quarters of sustainable earnings growth.'''[35]
Some investors also have doubts about a fundamental turnaround in the mainland markets despite China's latest market-friendly measures, Lai said. He noted that the A-share markets on the mainland gave up some of their early gains. [6] 'A strong rally on Wall Street last Friday and a rebound in mainland markets boosted sentiment,' said Tony Tong, deputy head of research at China Everbright Securities. He said the local bourse was held back in the afternoon as the mainland markets gave back most of their early gains.[7] Yip said the measures are 'unlikely help arrest the fall on mainland markets' and that the Shanghai composite Index is likely to fall below the 3,000 point-level in the near term. He said the local bourse is likely take its lead from Wall Street rather than from the mainland markets in future.[7]
Elsewhere, in Seoul, the Kospi index crossed the 1,800-points mark for the first time since early January to 1,800.48 adding 1.6 percent on Monday.[20]
A larger than expected decline in Bank of America's first quarter profit renewed jitters about the health of l.[32] Yanzhou Coal Mining YZC announced that it increased net profit by 36% in 2007, to 3.23 billion yuan ($462 million).[12] In January, Ping An said it would issue shares and convertible bonds to raise about 120 billion yuan on the A-share market, but it did not say how the proceeds would be used.[14]
Asian shares edged lower Tuesday, weighed down by banks and brokerages on renewed financial sector worries.[32] Yanzhou H-shares surged 7.4%, to HK$13.10, propelled by a large foreign buyer during the mid-afternoon. The shares fell back slightly from the day high of HK$13.36 after some investors entered into a technical trade in which they bought gold miner Zijin Mining ZIJMF and sold Yanzhou simultaneously. Zijin spent the day in the red but entered the green as Yanzhou fell from its high, finishing up 0.8%, at HK$7.19.[12] 'People would rather wait and see if there are any further developments that should make investors turn more positive about the market before accumulating more stocks. For now, they want to take profit,' he said.[4] Once mesmerised by stellar gains, Shanghai stock investors feel the pain of the recent market tumble.[32]
Chinese financials and property stocks also posted gains following the rebound in the mainland markets.[3] Tanrich's Kwok said weak mainland bourses also weighed on sentiment. He said that 'locally-listed China stocks are gradually getting rid of the drag of their mainland peers,' noting that H-shares outperformed overall.[9]
'''The market has overreacted to the economic and corporate slowdown.''' A measure of energy stocks on MSCI'''s regional benchmark rose 1.9 percent this week, the biggest gain among 10 industry groups.[35] Infosys Technologies Ltd., India'''s second-largest software- services provider, climbed 17 percent to 1,659.1 rupees. The company said it expects sales growth to accelerate this year to a record as a U.S. slowdown spurs clients to send more work overseas.[35] U.S. and European banks have picked up a wealth of minority stakes in Asian banks in recent years, hoping to capitalize on fast-growing local economies that often have nascent consumer credit businesses.[21] In 1987, the Citigroup predecessor Citicorp, saddled with billions in bad developing world loans, sold a two-thirds stake in Citicorp Center on Lexington Avenue to Dai-Ichi Mutual Life Insurance Company on Japan. In recent years, British banks have been selling their branch offices and then leasing them back, in order to free capital. After deciding, en masse, to get into the insurance business in the late 1990s - sparked by Citicorp and its merger with Travelers Group - banks started dumping these units in recent years.[21]
To secure the majority stake ANZ will have to shell out at least $2 billion. The opportunity to acquire Wing Lung comes as ANZ revealed plans to relocate to India a raft of work functions from its New Zealand operations.[34]
The new office, Packet Design's first direct presence in the Far East, will work with regional reseller partners to serve customers in China, Japan, South Korea, Taiwan and southeast Asian nations. [37] 'Problems linger in the banking sector in the U.S. and Europe, and any fresh negative news can pressure our market,' Gorges noted. 'In China, worries will remain on the possibility of more tightening measures being adopted in future in the face of high inflation,' he added.[17] The Dow and the S&P; 500 posted modest losses on Monday amid new concerns about U.S. banks.[32] Yiu also noted that U.S. markets held up relatively well overnight despite Bank of America's disappointing quarterly results. 'Institutional funds are still flowing into equity markets and this is positive,' he said.[8]
Nonferrous metals led other decliners, with Aluminum Corp. of China down 1.3 per cent, Jiangxi Copper off 3.6 per cent, Shandong Gold-Mining down 4.3 per cent and Zhongjin Gold down 6.4 per cent. [22] Land counters fared well with Sun Hung Kai Properties and Cheung Kong gaining 3.32 and 3.37 per cent respectively.[24]
"City boys in Hong Kong are saying: 'We can get our wine in for nothing now'," Mr Staples said. [28] In Hong Kong, analysts said the fundamental undertone of the market remains bearish.[19]
In the past month, China Mobile has soared 27% vs. gains of just 6.7% in PetroChina PTR and 7.4% in HSBC Holdings HBC, for example. [16] China Mobile's performance far exceeds rivals China Telecom CHA, China Unicom CHU and China Netcom CN, which are all trading in negative territory for the month.[16] The industry restructuring will mark China Telecom's foray into wireless telephony and better equip it to compete with industry giant China Mobile.[3]
Shares of Honda Motor jumped by 8.8 percent, Isuzu Motors added 2.2 percent, Nintendo surged by 6.7 percent, Canon gained by 6 percent and Sony increased by 5.7 percent in Tokyo. [20] CNOOC Ltd., the country's biggest offshore oil producer, was 3.3 percent higher at HK$13.98.[2] Asia's biggest oil producer PetroChina was also supported by record-high oil prices.[3] For the near term, people are still hoping that the government will come up with more market-friendly measures like cutting the stamp duty,' said Ben Kwong, head of research with KGi Asia. Oil stocks -- Petrochina and Sinopec (NYSE:SNP) Corp -- outperformed the market on Beijing's promise to grant subsidies to its loss-making refiners.[3]
The investment outlook for most African mobile markets is poor to medium in the short-term, due to weak commercial and political stability. Oil exporting countries as well as those with strong economic growth such as Algeria, Mozambique, Egypt and Angola show impressive growth in output and private spending, thus increasing penetration, revenues and profit margins of mobile operators.[40] Despite the region'''s largest markets (Russia and Ukraine) approaching saturation and intensifying competition, operators are expected to increasingly profit from the growth in value-added services. Most developed economies in North America and Europe are reliant on new mobile products to grow since their markets have saturated with penetration above 90%.[40]
SOURCES
1. Shanghai's Stunning Turnaround - Forbes.com
2. Hong Kong shares end morning higher on strong earnings hopes, China move UPDATE - Forbes.com
3. Hong Kong shares close higher on Shanghai rebound; oil stocks shine -UPDATE
4. Hong Kong shares lower amid weak region on poor results, oil price spike UPDATE
5. Bank of America selling shares in China Construction Bank - report - Forbes.com
6. Hong Kong shares end morning higher; China stocks, properties outperform UPDATE - Forbes.com
7. Hong Kong shares close higher led by large-caps, properties, oil firms - UPDATE
8. Hong Kong shares close higher as China stocks track Shanghai recovery UPDATE
9. Hong Kong shares end morning lower; PetroChina, Sinopec help limit losses UPDATE - Forbes.com
10. Hong Kong shares lower on profit-taking, weak Wall St - UPDATE - Forbes.com
11. SCMP.com - the online edition of South China Morning Post, Hong Kong's premier English-language newspaper
12. Asia: Shanghai Rebounds, Tokyo Slips | World Markets | CEO CHL LFC PTR SHI SNE YZC - TheStreet.com
13. Hong Kong shares higher on easing credit crisis worries, China move - UPDATE
14. SCMP.com - the online edition of South China Morning Post, Hong Kong's premier English-language newspaper
15. Hong Kong shares close up 0.88 pc- Global Markets-Markets-The Economic Times
16. Asia: Redefining Defensive China Stocks | World Markets | BACHF CHL CN GOOG HBC PTR SKM - TheStreet.com
17. Hong Kong shares higher on Wall St rally, China market boost - UPDATE - Forbes.com
18. Hong Kong shares lower on profit-taking after Dows retreat - UPDATE
19. Most Asian markets rise; Japanese exporters, financial companies gain after Wall Street rally
20. Asian Stocks Close Higher Led By Regional Boost On Earnings | April 22, 2008 | AHN
21. As capital gets tighter, banks rethink investments - International Herald Tribune
22. The Canadian Press: Asian markets mixed; Japanese stocks dragged to first loss in six sessions
23. HK stocks seen down, tracking overseas weakness- Global Markets-Markets-The Economic Times
24. Hong Kong stocks rise 2 per cent on optimism that worst is over - Business
25. China Re opens Hong Kong representative office - Forbes.com
26. HK stocks erase losses on Shanghai rebound | Industries | Financial Services & Real Estate | Reuters
27. Sky News: Asia's mixed picture
28. Asia's thirst for wine benefits exporters:wines-info
29. Asian economic and business calendar -- to May 7 | Latest News | News | Hemscott
30. Asian stocks jump amid hopes of easing credit crunch | France 24
31. Business Day - News Worth Knowing
32. Hong Kongs benchmark index rises, boosted by gains in Shanghai stocks, oil refiners - International Herald Tribune
33. Computerworld Singapore - The Voice of IT Management
34. ANZ in two-battle for Wing Lung retail bank | Herald Sun
35. tehran times : Asian stocks fall for 1st week in four on global growth concern
36. Untitled
37. Packet Design Opens Hong Kong Sales and Support Office
38. Fashion jobs, news, business, platform for the apparel industry, FashionUnited - Cold Method China launch
39. Hong Kong shares lower amid weak region on poor results, oil price spike UPDATE - Forbes.com
40. Altimo Says Aisa to Remain the Mobile Investment Hotspot Until 2010
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