DailyFinance.comhttp://www.dailyfinance.comDailyFinance.com%http://www.blogsmithmedia.com/BlogURL%/media/feedlogo.gifDailyFinance.comhttp://www.dailyfinance.comen-usCopyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only.Blogsmith http://www.blogsmith.com/Nikkei Slips as Goldman Slashes Japan's Growth Forecasthttp://www.dailyfinance.com/2011/03/29/nikkei-slips-as-goldman-slashes-japans-growth-forecast/http://www.dailyfinance.com/2011/03/29/nikkei-slips-as-goldman-slashes-japans-growth-forecast/http://www.dailyfinance.com/2011/03/29/nikkei-slips-as-goldman-slashes-japans-growth-forecast/#commentsFiled under: , ,

In Asia Tuesday Japan's Nikkei 225 Index slid 0.2% to 9,459 and Hong Kong's Hang Seng Index dipped 0.3% to 23,060. In China the Shanghai Composite Index shed 0.9% to close at 2,958.

Japan's market took yet another beating today when Goldman Sachs lowered its growth forecast for the country's annual gross domestic product. Goldman had previously estimated growth of 1.3%, but has dropped that number down to 0.7% in light of the recent disasters and a slowdown across the country as power cuts and rolling black outs hamper business of all kinds.

Meanwhile, the firm is playing down the radiation danger to its own employees. Goldman has reportedly required its Tokyo-based employees to stay put calling a meeting at its Tokyo headquarters. "The message was clear: no one is to leave," a source told CNBC. "If you do leave, you can't come back and expect to still work for Goldman."

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On Japan's big board, Tokyo Electric Power shed a whopping 18.8% today, with about $30 billion wiped off its market value since March 11. Reuters reports that there's a possibility that the utility could be nationalized in order to help pay for the extensive damages resulting from the catastrophe at the Fukushima Dai-Ichi nuclear plant. The company is already seeking around $25 billion in emergency loans, and the talk of nationalization is scaring off investors.

Other nuclear-related shares closed lower with Japan Steel Work plunging 1.3%, Fuji Electric, which built Japan's first commercial nuclear power station in 1965, slipping 1.2% and Hitachi down 1%.

Japanese banks slid lower with Mitsubishi UFJ plunging 2.8%, Mizuho Financial losing 2.1% and Sumitomo Mitsui Financial Group falling 1%. Insurance companies also took a hit with Dai-Ichi Life sliding 5.2%.

Some saw the recent slump as a buying opportunity and snapped up shares in firms like Alps Electric, which makes electronics for cars and spiked 6.6%, and in Meidensha, an electrical company supplying machinery to utility and construction businesses, including generators and water-treatment systems. Meidensha shares climbed 7.6%.

In Hong Kong, banking stocks closed lower with Agricultural Bank of China falling 1.9% and Bank of China retreating 0.5%. Chongqing Rural Commercial Bank was the worst performer in the sector, plunging 12.5% after disappointing analysts with a lower-than-expected growth forecast for 2011.

Meanwhile, firms that beat estimates reaped handsome rewards. Brilliance China, making cars under the BMW brand name, rallied 5.3%, and retailer Gome Electrical Appliances, whose founder is serving a 14-year prison sentence for insider trading, shot up 2.8%.

New fears that Beijing may raise interest rates as soon as next month dampened the recent stock buying spree. Shares in car companies closed lower with Beiqi Foton Motor leading the way with a 4.3% drop and FAW Car losing 2.9%. Chongqing Changan Automobile posted a 1.6% loss.

Among electronic appliance makers Qingdao Haier plunged 4.3%, Gree Appliances tumbled 3.6%, and Suning Appliance fell 1.7%.

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]]>asian marketsfukushima dai-ichijapan earthquakeLauren CooperTue, 29 Mar 2011 07:00:00 ESTNikkei Slides with Tokyo Electric as Boss Faces the Boothttp://www.dailyfinance.com/2011/03/28/nikkei-slides-with-tokyo-electric-as-boss-faces-the-boot/http://www.dailyfinance.com/2011/03/28/nikkei-slides-with-tokyo-electric-as-boss-faces-the-boot/http://www.dailyfinance.com/2011/03/28/nikkei-slides-with-tokyo-electric-as-boss-faces-the-boot/#commentsFiled under: , ,

In Asia Monday Japan's Nikkei 225 Index fell 0.6% to 9,479 and in Hong Kong the Hang Seng Index lost 0.4% to close at 23,068, while China's Shanghai Composite Index added 0.2% to end the day at 2,984.

Tokyo Electric Power's top boss is following his company's share price into the doldrums. The energy company has lost $29 billion in value since the March 11 earthquake and tsunami that led to the nuclear disaster at its Fukushima Dai-Ichi plant, according to Bloomberg. Tokyo Electric's 66-year-old president, Masataka Shimizu (pictured), is now facing calls to step down amid charges that he reacted too slowly -- attempting to save the plant for future use rather than taking the most effective steps to prevent radiation leakage, such as immediately flooding it with sea water. "They were greedy and wanted to try to re-use the reactors," Tokyo's governor told Bloomberg. "Had they used sea water from the start we wouldn't be in this situation."

Shimizu's reputation has been further tarnished by reports that he was taken ill in the midst of the crisis. According to the Straits Times, overwork led to illness and he was forced to take a week off from the government's task force created to address the disaster. This show of weakness can only diminish his reputation among a population seeking strength and guidance.

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Today Tokyo Electric Power shares plunged a further 20.5%, that's a loss of 73% since the problems began and its lowest price since 1977. Shares in Hitachi, which also builds reactors, fell 1%; Japan Steel Works, a maker of nuclear components, slipped 0.9%; and Toshiba edged down 0.5%.

Among companies that lost value after suffering factory damage were Tokyo Electron, which slumped 3.1%. The maker of electronics components was forced to close a factory in Iwate, which was directly affected by the March 11 earthquake. Japan Tobacco, which shut five damaged factories after the quake, slid 2.2%.

Meanwhile, Sumitomo Metal Industries soared 5.6% after restarting operations, and gains in car makers countered some of the hefty losses in other sectors. Nissan surged 3.5%, Honda climbed 2.1% and Toyota added 0.6%. Mazda, however fell 0.6%.

Hong Kong markets closed lower as investors focused on corporate earnings. China Petroleum & Chemical tumbled 2% after missing earnings estimates, as did China Construction Bank, which dived 2.3%. Meanwhile China Pacific Insurance advanced 1.8% after beating estimates.

Shares in Hong Kong real estate firms retreated in the jittery atmosphere with China Resources Land plunging 2.7%, Henderson Land losing 1% and New World Development down 0.6%.

In China, higher profits drove up share prices. Yanzhou Coal Mining rallied 5.3% after more than doubling net income, while China Minsheng Banking zipped up 2.6% on increased profits that took the company's total net income to a better-than-expected $2.7 billion.

China Shenhua Energy, another coal producer rose 1.4%, China Coal Energy advanced 0.8% and Inner Mongolia Yitai Coal gained 0.6%.

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]]>asian marketsfukushima dai-ichihang senginternational marketsjapan earthquakeJapanEarthquakeMasataka ShimizuNikkei 225shanghai compositeTokyo Electric Power CompanyLauren CooperMon, 28 Mar 2011 07:05:00 ESTRecord Amounts of Cash Flow Into Japanese Stockshttp://www.dailyfinance.com/2011/03/25/record-amounts-of-cash-flow-into-japanese-stocks/http://www.dailyfinance.com/2011/03/25/record-amounts-of-cash-flow-into-japanese-stocks/http://www.dailyfinance.com/2011/03/25/record-amounts-of-cash-flow-into-japanese-stocks/#commentsFiled under: , , ,

Asian Markets rose Friday. In Japan the Nikkei 225 Index climbed 1.1% to 9,536 and in Hong Kong the Hang Seng advanced 1.1%, closing at 23,159. China's Shanghai Composite also gained 1.1%, ending the day at 2,978.

Debates are raging over whether Japan needs charitable financial help to recover, but one way money has been flowing into the country is in the form of foreign purchases of Japanese stocks as investors snap up hammered shares. According to Bloomberg, $11 billion in Japanese stocks were purchased by foreign investors in the week following the earthquake and tsunami. That's the highest amount recorded since 2005 when Japan's Ministry of Finance began keeping track.

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Today's favorites included firms making construction machinery. IHI, which makes heavy machinery as well as nuclear plants and oil refineries, rocketed up 6.6% and Komatsu, a construction machinery maker, rose 4.7%. Comsys Holdings, which designs power and telecom facilities, surged 6.3%.

Japanese building and engineering companies retreated. Taisei, which developed the award-winning Hybrid Taisei Shake Suspension System (TASS) that uses rubber and a sliding mechanism to protect skyscrapers during earthquakes, tumbled 3.2%, Kajima slumped 3% and Obayashi slid 1.8%.

Shares in Tokyo Electric Power, the operator of the Fukushima nuclear plant, were hit hard again after three workers struggling to re-connect power to the facility were hospitalized with radiation exposure. An official from Tokyo Electric Power said that two of the workers are being treated for radiation burns, admitting that they weren't wearing the correct attire including waterproof boots while working in a flooded area. He also explained that they had carried on their work after their radiation detectors had sounded alarms warning them to leave the area. Shares in Tokyo Electric sank 6.2%. Other nuclear-related firms also fell with Hitachi losing 5.1%.

In Hong Kong, shares in casino operator SMJ surged 5.9% after Stanley Ho redistributed nearly all of his shares in an attempt to resolve a family dispute. Bloomberg reports that Ho's family gets half of all the cash bet in Macau -- China's answer to Las Vegas -- where it runs a huge number of local casinos.

Banks were also on the move after Bank of China posted a 29% rise in annual net income. Shares rallied 2.6%. China Construction Bank advanced 2% and Industrial & Commercial Bank of China gained 1.9%.

In China, banking stocks also rose with China Minsheng climbing 1.5%, Industrial & Commercial Bank of China up 1.1% and China Construction Bank up 1%.

A number of firms got a boost after reporting better-than-expected 2010 profits. Gree Electric Appliances shot up 6.4%, Beiqi Foton Motor zipped up 4.2% and Chongqing Brewery added 1%.

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]]>asian marketsFukushima Daiichi Nuclear Power Stationjapan earhtquakeJapanEarhtquakeJapanese stocksMacaunikkeiStanley hoTokyo Electric PowerLauren CooperFri, 25 Mar 2011 07:20:00 ESTAsian Oil Stocks Head North on Cnooc's Heady Earningshttp://www.dailyfinance.com/2011/03/24/asian-markets-head-north-on-cnoocs-heady-earnings/http://www.dailyfinance.com/2011/03/24/asian-markets-head-north-on-cnoocs-heady-earnings/http://www.dailyfinance.com/2011/03/24/asian-markets-head-north-on-cnoocs-heady-earnings/#commentsFiled under: ,

Hong Kong's Hang Seng Index added 0.4% to close at 22,915 on Thursday. In Japan the Nikkei 225 Index dipped 0.2% to 9,435 and in China the Shanghai Composite Index slid 0.1% to end the day at 2,947.

Shares in Cnooc, China's most visible offshore oil producer, surged after the company announced record-high net profits for 2010. According to a statement released by the company, growth hit 84.5% as compared with last year, and sales of oil and gas were up 77.7%. The firm has launched nine new projects that are now producing, boosting total production for the year to 328.8 million barrels -- an all-time high for Cnooc.

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Investors took heart in the glowing results, sending Cnooc shares up 1.8%. Other oil companies also rose, with Sinopec gaining 1.2% and PetroChina up 0.4%. Shares in coal-based energy firms were mixed with China Coal slumping 1.9% and China Shenhua adding 0.3%.

Mining stocks followed the London Metal Exchange higher after it gained 2.3% by the close of trading in London yesterday. Aluminum Corp. of China ramped up 2.2%, Jiangxi Copper advanced 1.5%. Gold mining companies got a boost after the price of the precious metal hit $1,441.16 today, nearing its recent record of $1,444.94. Zhaojin Mining Industry climbed 2.1%, Real Gold Mining edged up 1.1% and Zijin Mining gained 1%.

Internet firms made headway with Tencent surging 2.9% and China Unicom rising 2.6%. Both firms serve the Chinese market, with Tencent boasting one of hottest trends in communications services and online gaming. Its QQ instant messaging had 647.6 million active users by the end of 2010, according to Bloomberg, and has been up and running for 12 years. Not only does it provide free instant messaging, but also gives users access to a smorgasbord of addictive games ranging from QQ PET, where users care for virtual pets to QQ San Guo or Three Kingdoms, where payers take on the character of historical heroes.

Fukushima Nuclear Plant Owner Suspends Dividend

In Japan, beleaguered Tokyo Electric Power, owner of the crippled Fukushima nuclear plant, sank 14% after dividend payments have been suspended. There was general gloom among other utilities as well with Tohoku Electric Power tumbling 5% and Chubu Electric Power losing 1.7%

Japanese car makers headed south on news that components and raw materials needed to produce vehicles were becoming hard to come by. Nissan slid 4.6%, Mazda slumped 3.7%, Subaru maker Fuji Heavy slumped 3.3%, Isuzu and Toyota were both down 2.7% and Honda slid 2.6%.

Meanwhile Japanese metal companies rose with Nisshin Steel climbing 5.9%, Nippon Light Metal rising 5.5% and Sumitomo Metal Mining advancing 4.7%.

In China, heavy losses among coal miners and banks weighed the market down. Yanzhou Mining sank 1.7%, Guizhou Panjiang Refined Coal shed 1.6% and China Shenhua Energy fell 1%. Among banks, China Merchants lost 0.4% and Bank of Communications inched down 0.2%.

Chinese gold miners countered declines with Shandong Gold Mining gaining 0.8% and Zhongjin Gold adding 0.3%. But gains didn't outpace losses on Shanghai's big board.

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]]>cnoocCnooc earningsenergy stocksgoldhondaMazdaNissanTencentTokyo Electric PowerToyotaLauren CooperThu, 24 Mar 2011 07:30:00 ESTJapanese Shares Jittery as More Earthquakes Rumblehttp://www.dailyfinance.com/2011/03/23/japanese-shares-jittery-as-more-earthquakes-rumble/http://www.dailyfinance.com/2011/03/23/japanese-shares-jittery-as-more-earthquakes-rumble/http://www.dailyfinance.com/2011/03/23/japanese-shares-jittery-as-more-earthquakes-rumble/#commentsFiled under: ,

In Asia Wednesday Japan's Nikkei 225 Index retreated 1.7% to 9,449 and Hong Kong's Hang Seng Index dipped 0.1% to 22,825. In China the Shanghai Composite Index rose 1% to end the day at 2,948.

More bad news in Japan sparked profit taking today. Radioactive iodine has seeped into Tokyo's drinking water, making tap water unsafe for babies under the age of one, according to the Japan Times. Meanwhile Prime Minister Naoto Kan has warned Fukushima residents against eating certain locally grown vegetables, including broccoli and spinach, and new reports show that the surrounding seawater is also radioactive, which could lead to a ban on seafood if the contamination doesn't dissipate. Today another series of earthquakes rocked Japan, including a 6.6 magnitude tremble.

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All this was more than enough to rattle the markets. Jtekt, a maker of car parts for Toyota, slumped 6.1% after Toyota announced it's suspending production in its Japanese factories until March 26. Alps, which provides automotive electrical components, slid 4.9%. Honda also says it's halting production lines for the time being, and today slipped 1.8%. Other car makers fared no better with Isuzu tumbling 3.2%, Mitsubishi Motor dropping 2.9%, Mazda falling 2.1% and Toyota down 1.2%.

Other big losers included Tokyo Electric, the owner of the crippled Fukushima Dai-Ichi reactor, which plunged 4.5%, gaming company Konami, which lost 4.4% and Trend Micro, a software company, which slid 5.3%

Beverage Makers Soar as Japanese Turn to Bottled Water

But investors plowed money into beverage producers after warnings about Tokyo's drinking water. Coca-Cola West shot up 5.6%, Ito En, specializing in tea products including canned and bottled tea-based products like Sencha Shot and Oi Ocha, climbed 3%. Beer makers also rose with Asahi Breweries gaining 2.6% and Kirin adding 1.9%.

Makers of water purification equipment also ballooned. Nihon Trim, which sells Pristine brand ionized mineral water and filtration systems, zipped up 14.4%, Organo Corp leaped 8.4% and Kurita Water Industries advanced 2.8%.

In Hong Kong shares in China Coal dived 9.1% after net income for the year increased only 1%, far below expected. Maanshan Iron & Steel retreated 2.6% after reporting a 95% decrease in net income for the second half of the year, according to Bloomberg.

Gains in the territory's real estate sector carried the market higher with Henderson Land shooting up 2.8%, Cheung Kong rising 2% and Sino Land adding 0.1%.

Clothing retailers and distributors suffered losses with China Dongxiang Group, which sells Kappa brand sportswear in China, slumping 9.6%, Li & Fung falling 0.8% and Esprit down 1%.

China's real estate companies also rose after rumors circulated that local governments, now responsible for controlling the housing bubble, won't set targets as low as expected. Poly Real Estate jumped 3.9%, Gemdale gained 3.1% and China Vanke rose 2.4%. Despite additional programs to rein in prices, including higher down-payment requirements and restrictions on purchasing second and third homes, property values continue to soar. Statistics bureau numbers for February show that prices increased in all but two of the 70 cities tracked.

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]]>Asian marketsbottled waterFukushima Dai-Ichijapan earthquakejapan earthquake 2011Lauren CooperWed, 23 Mar 2011 07:50:00 ESTNikkei Surges as Warren Buffett Backs Japan as a Buying Opportunityhttp://www.dailyfinance.com/2011/03/22/nikkei-surges-as-buffett-backs-japan-as-a-buying-opportunity/http://www.dailyfinance.com/2011/03/22/nikkei-surges-as-buffett-backs-japan-as-a-buying-opportunity/http://www.dailyfinance.com/2011/03/22/nikkei-surges-as-buffett-backs-japan-as-a-buying-opportunity/#commentsFiled under: ,

Asian markets rose Tuesday. In Japan the Nikkei 225 Index surged 4.4% to 9,608 and in Hong Kong the Hang Seng Index climbed 0.8% to 22,858. China's Shanghai Composite Index edged up 0.3% to end the day at 2,919.

Not everyone is focusing on the down side of Japan's triple disaster -- tsunami, earthquake and nuclear catastrophe. Warren Buffett, for one, has faith in Japan's economic prospects.

Speaking in South Korea, Buffett compared Japan's situation to America's after 9/11, saying it "didn't change the future of the U.S. or the economic prospect of the U.S.," reports the Telegraph. "I feel exactly the same way after what's happened in Japan. People have the same energy, they have the same desire to move on and the same resources to rebuild," the billionaire investor said.

Buffett added that "frequently extraordinary events really create a buying opportunity." And today, investors were certainly searching for bargains. Shares of Tokyo Electric Power, which operates the Fukushima Daiichi nuclear plant spiked 16.8%. While the company has an enormous clean up job ahead, Japan's lack of natural resources nearly assure that it's got big restructuring work ahead of it, too. Other nuclear companies were also a popular buy today with Toshiba soaring 12.8% and Hitachi rising 6.6%.

Rebuilding Japan

While many argue that it may take ages for bets on Japan to pay off, investors gambled that steelmakers will return handsome profits. Today JFE Holdings rallied 10.7%, Japan Steel Work climbed 7.7% Kobe Steel surged 7.6% and Nippon Steel and Sumitomo Metal Industries shot up 7.1%.

Oil companies also rose with JX Holdings racing up 11.6%, Japan Drilling gaining 8.8% and Inpex Corp. rising 3.5%.

Japanese engineering and building firms were other top performers. Taisei motored up 10.9%, Kajima rose 10.1% and Obayashi, advanced 6.6%.

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In Hong Kong, the airline sector bounced back after fears that radiation leaking from Japan's damaged nuclear power plant would sap the travel industry. While few are heading to Japan to take in the annual cherry blossom festival, they are still traveling elsewhere and shares in Air China climbed 3.6%, China Eastern Airlines gained 4.1% and both China Southern Airlines and Cathay Pacific advanced 3.1%.

Other winners included Lonking Holdings, a construction machinery manufacturer, which surged 8.6% and Lenovo, a maker of computers and other electronic devices, which zipped up 6.5%.

In China, cement makers gained with Huaxin Cement leaping 6.1%, Gansu Qilianshan Cement jumping 5.5% and Anhui Conch rising 4.8%.

Meanwhile, alternative energy companies fared badly with Xiniang Goldwind Science & Technology plunging 3.2%, solar cell manufacturer Risen Energy declining 2.7% and Sinovel Wind losing 1.3%.

Other gainers on the Shanghai market were banks, which are promising to report strong earnings for 2010. Bank of China gained 0.6% and Industrial & Commercial Bank of China and China Construction Bank both rose 0.5%.

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]]>alternative energybuying opportunityFukushima Daiichijapan earthquakejapan nuclear crisisnuclear powerrebuilding Japanwarren buffettLauren CooperTue, 22 Mar 2011 07:15:00 ESTAsian Markets Follow Oil Prices Higherhttp://www.dailyfinance.com/2011/03/21/asian-markets-follow-oil-prices-higher/http://www.dailyfinance.com/2011/03/21/asian-markets-follow-oil-prices-higher/http://www.dailyfinance.com/2011/03/21/asian-markets-follow-oil-prices-higher/#commentsFiled under: ,

Markets in Hong Kong and China climbed Monday. Hong Kong's Hang Seng Index rose 1.7% to 22,685 and China's Shanghai Composite Index inched up 0.1% to end the day at 2,909. Japanese markets were closed today, taking a much-needed break to honor the vernal equinox marking the beginning of spring.

The price of oil is spiking in the wake of air strikes against Libya and government crackdowns against protesters in other Middle Eastern countries. Oil hit $116.19 this morning in London -- not far from the two-and-a-half year high of $120.

As the conflict in Libya escalates, analysts are predicting that Libyan oil outputs and exports will not be recovering any time soon. Paris-based IEA began warning that Libyan oil will not return to the market "for a considerable time" even before bombing commenced, reports the Financial Times. Meanwhile, at Bahrain Petroleum 90% of the company's employees went on strike last week in protest of police crackdowns on anti-government protesters, further jeopardizing the flow of oil. But Bloomberg reports that most have now returned to work.

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In Hong Kong, oil companies surged higher amidst the turmoil. Cnooc soared 3.6% and PetroChina climbed 3.3%. Coal energy company China Shenhua gained 3.1%, while China Coal Energy rose 3%.

Communications firms climbed with phone company PCCW leaping 4.6% after news spread that it's considering spinning off its telecom business and acquiring a separate listing either in Hong Kong or elsewhere. Until recently, PCCW dominated the fixed-line and broadband market in the territory, but is now facing stiff competition from newcomers like i-Cable, Hutchison Global and HKNeT. China Mobile, providing services across the Mainland, advanced 1.5%.

Hong Kong-listed Internet company China Unicom gained 1.9% and Tencent added 0.2%.

Other companies that made sharp gains today included Foxconn, which rallied 5.2%, Hutchison Whampoa, which shot up 3.4% and shoe maker Belle International, which rose 3.1%.

In China, nuclear-related shares recovered after suffering heavy losses last week in the aftermath of Japan's nuclear disasters. Dongfang Electric, which sells products like pressurizers and steam generators for nuclear power plants, gained 1.2% after falling 15% last week. The Chinese government, along with other nations such as Germany, announced it would suspend approving any new nuclear projects for the time being. Shanghai Electric, another nuclear equipment maker, rose 1.5%.

There were losses today for China's big players in the spirits sector. Kweichow Moutai, which makes the famed 106-proof alcoholic drink, sank 2.1% on lower-than-expected net income. Wuliangye Yibin , a spirit maker well known for its plum wine that generally has a more conservative alcohol content of 12% to 30%, slumped 1.8%, and Jiangsu Yanghe Brewery dropped 1.4%.


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]]>asian marketsjapan nuclear crisisjapanese earthquakelibya crisisoil pricesvernal equinoxLauren CooperMon, 21 Mar 2011 07:10:00 ESTG-7 Pledges to Restrain Japanese Yenhttp://www.dailyfinance.com/2011/03/18/g-7-pledges-support-for-japanese-yen/http://www.dailyfinance.com/2011/03/18/g-7-pledges-support-for-japanese-yen/http://www.dailyfinance.com/2011/03/18/g-7-pledges-support-for-japanese-yen/#commentsFiled under: ,

Japan's Nikkei 225 Index advanced 2.7% on Friday, ending a turbulent week at 9,207. In Hong Kong the Hang Seng Index inched up 0.1% to 22,300 and in China the Shanghai Composite Index rose 0.3% to close at 2,907.

As workers at the Fukushima Dai-Ichi nuclear plant continue to fight off a nuclear meltdown, G-7 countries have united to help stave off economic disaster. The group of seven industrialized countries agreed to intervene in currency markets for the first time in more than a decade to prevent the yen from rising further after it hit a record high earlier this week.

In a statement released by the European Central Bank, the G-7 said its actions were "at the request of the Japanese authorities," adding that "We will monitor exchange markets closely and will cooperate as appropriate." Japan's central bank has pledged to adopt strategies for "powerful monetary easing."

Exporters benefited from the decline in the yen. Lower yen valuations increase the amount companies earn selling merchandise abroad, since they end up with more yen once they repatriate profits. Daikin Industries, a major exporter of air conditioners, rallied 8.7%. The company has numerous plants and service centers doing business in locations ranging from Osaka to Thailand to Shanghai, which were not all affected by the earthquake and tsunami.

Among electronics exporters Pioneer jumped 9.8%, OKI Electric surged 7.3%, NEC rallied 6.9% and Ricoh gained 6.7%. Car electronics maker Alps climbed 6.5% and Konica Minolta soared 5.5%. Yokogawa Electric, which provides IT solutions as well as electronic components, adaptors and semiconductors motored up 8.5%.

Other consumer product manufacturers also gained. Watchmaker Citizen Holdings shot up 6.15% and Fast Retailing, the operator of Uniqlo shops around the world, advanced 6.4%. Upscale department store Takashimaya leaped 9.5%.

Food and beverage companies also fared better with Kikkoman of soy sauce fame rising 4.6% and beer maker Kirin up 1.1%.

Eyes on Builders, Construction Companies

Japanese builders and construction material firms are the ones to watch -- they'll be doing swift business once the recovery begins. Today Taiheiyo Cement zipped up 15.3%, Japan Steel Works climbed 10.8% and Nippon Steel advanced 4.1%. Obayashi, which is part of a consortium developing and erecting the super high-tech, fully automated Dubai metro, rose 4.6% and its partner in the Dubai project, Mitsubishi Heavy Industries, which also develops nuclear power plants, gained 5.9%.

Shares in Tokyo Electric Power, the beleaguered owner of the Fukushima nuclear power plant, reversed course for the first time this week, shooting up 17.9%. The company is racing to reconnect a power line leading to the pumps needed to cool the reactors.

Hong Kong markets fluctuated, closely watching the global situation and waiting for signs of stability. Most real estate firms gained with both China Overseas and China Resources Land rocketing up 6.5%, Henderson Land spiking 4.1%, Sino Land climbing 3.3% and New World Development gaining 3.2%. But there were losses too as Sun Hung Kai dipped 0.3% and Swire Pacific lost 0.2%.

Insurers sank lower with China Life falling 1.6% and Ping An losing 0.9%.

Chinese efforts to cool the real estate market received a blow today as new statistics show that the price of new properties in China rose in 56 out of 70 major cities. This helped pump up shares in Gemdale Corp, which rose 2.3%. Poly Real Estate, which gained 2%, and China Vanke, which added 0.3%.

In China Sany Heavy which specializes in construction machinery including concrete pumps and paving equipment rallied 7.6% and Zhejiang Jinggong Science & Technology, a maker of heavy machinery, also climbed 7.6%.

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]]>asian marketschina real estatecurrencyFukushima Dai-IchiG-7japanjapan earthquakeJapanEarthquakenuclear power plantsrebuilding JapanyenLauren CooperFri, 18 Mar 2011 07:50:00 ESTJapan's Nikkei Pares Losses as Factories Reopenhttp://www.dailyfinance.com/2011/03/17/japans-nikkei-pares-losses-as-factories-re-open/http://www.dailyfinance.com/2011/03/17/japans-nikkei-pares-losses-as-factories-re-open/http://www.dailyfinance.com/2011/03/17/japans-nikkei-pares-losses-as-factories-re-open/#commentsFiled under: , , ,

In Asia Thursday Japan's Nikkei 225 Index slid 1.4% to close at 8,963. In Hong Kong the Hang Seng Index slumped 1.8% and in China the Shanghai Composite Index slipped 1.1% to end the day at 2,897.

Japan's markets got a slight reprieve today as the yen slipped a bit after hitting a record high yesterday. While the lower value helped exporters recover from severe losses earlier in the trading session, the country has a long way to go before confidence in its economy's resilience is restored.

As foreigners flee the country in fear of a worsening nuclear disaster, Japanese manufacturers are reopening factories. Today Toyota reopened seven plants, reports AFP, and workers were already back at work at Mitsubishi Motors and Bridgestone. Electronics company Kyocera has been back in business since Tuesday.

Among Japanese car makers Toyota closed down 2.2%, far better than the 5.7% loss recorded earlier in the day. Car enthusiasts across the web are chatting about availability of the new Prius and owners are worrying that repairs might be a nightmare, since all Priuses are made in Japan rather than at U.S. factories. The AP reports that only one of Toyota's hybrid battery plants was damaged in the quake. Mazda tumbled 5.3% and both Honda and Nissan lost 1.1%.

Japanese electronics makers slid lower, but not nearly as far as they had plunged earlier in the week. Sharp slid 2.4%, Pioneer lost 2.3% and Sony slipped 0.5%. Kyocera, a maker of electronics components and products ranging from liquid crystal displays and integrated circuits to scanners and printers advanced 2.3%, Panasonic gained 1.2% and Sanyo was up 0.9%.

Tokyo Electric, the operator of the disaster-struck Fukushima Dai-Ichi nuclear plant plunged another 13.5% in today's trading. Its value has fallen by more than 50% since Friday. For other nuclear-related shares losses are slowing. Japan Steel Works, which manufactures components for plants, lost a more modest 5.5%, plant builder Hitachi slid 4.3% and Toshiba only dipped 0.8%.

In Hong Kong investors remained jittery over a possible slowdown in the global economic recovery. Foxconn, a maker of mobile phones and popular gizmos like the iPhone and iPad, slumped 4.2%.

Hong Kong real estate shares that tend to fluctuate along with investor sentiment headed south. Cheung Kong dived 2.4%, Sun Hung Kai tumbled 1.7%, Henderson Land lost 1.4% and China Resources Land slid 1%.

Internet powerhouse Tencent suffered hefty losses today, even after reporting a more than 56% rise in net income. Analysts are concerned that growth is slowing, according to the Wall Street Journal. Meanwhile, China Unicom advanced 2.6%.

Power companies were among those that gained in Hong Kong with China Resource Power rallying 3.4% and Hong Kong & China Gas adding 0.3%. Coal based China Shenhua rose 0.2% and China Coal advanced 0.7%.

In China nuclear-related shares plunged. Nanfang Ventilator, which supplies nuclear plants with ventilation facilities, nosedived the daily maximum of 10% and Dongfang Electric slumped 7.6%. Meanwhile China Yangtze Power, which distributes power generated by the Yangtze hydropower project located at the Three Gorges Dam, rose 3.8%.

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]]>asian marketsFukushima Dai-Ichihondajapan earthquakejapan nuclear crisisJapan nuclear plantsJapanEarthquakejapanese factoriesmazdanissanPriustoyotaLauren CooperThu, 17 Mar 2011 07:45:00 ESTJapanese Shares Rebound as Investors Go on Bargain Hunthttp://www.dailyfinance.com/2011/03/16/japanese-shares-rebound-in-bargain-buying-asian-markets-up/http://www.dailyfinance.com/2011/03/16/japanese-shares-rebound-in-bargain-buying-asian-markets-up/http://www.dailyfinance.com/2011/03/16/japanese-shares-rebound-in-bargain-buying-asian-markets-up/#commentsFiled under: ,

Asian markets climbed Wednesday with Japan's Nikkei surging 5.7% to 9,094. In China the Shanghai Composite Index advanced 1.2% to 2,931 and in Hong Kong the Hang Seng inched up 0.1% to 22,701.

Japanese shares rode the wave higher today as investors scooped up shares in Japanese blue-chip firms that many believe were oversold in the sell-off following Japan's triple disaster that began with Friday's 9.0 magnitude earthquake.

As fires continue to break out at the Fukushima Dai-Ichi nuclear plant about 150 miles from Tokyo, radiation wafted into Tokyo, sending levels rising to about 20 times the normal levels, according to the Japan Times. But traders continued working on the floor of the Tokyo Stock Exchange, trusting reports from the Tokyo Metropolitain Government that the "very small amount" of dangerous chemicals were not high enough to harm humans.

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Among the stocks that soared today were Japanese building material firms like Kobe Steel, which climbed 15% and Asahi Kaisei, with businesses ranging from construction materials to synthetic material and plastic production, which shot up 17.6%. NGK Insulators, a maker of products such as electrical insulation, materials designed to filter exhaust fumes and sewer cleaning equipment, surged 16.4% and Taiheio Cement gained 6.5%.

There was bargain-buying across the board as investors assessed the likely future value of global brands once the nuclear emergency is under control. They bought up shares in everything from electronics to food companies. Fuji Electric racked up an 11% gain, Sony spiked 8.8% and Panasonic advanced 8.4%. Panasonic is reportedly increasing production of batteries, which are in high demand as rolling blackouts have resulted in panic buying of candles, flashlights and batteries.

Among Japanese food producers, beer and beverage maker Kirin Holdings motored up 11.9%, Ajinomoto, whose signature product, MSG, is widely available in Asian grocery stores, rallied 10.3%, Kikkoman rose 5.1%. Japan Tobacco also scored a 12.5% gain.

Car companies were also on the rebound. Toyota (TM) rose 9.1%, despite saying damage from the earthquake would result in a loss in profits of about $72 million per day of lost operations, according to Bloomberg. Toyota has closed 12 factories, but expects to reopen them tomorrow. Toyota parts producer Jtekt zipped up 11.3%. Isuzu climbed 10.5%, Fuji Heavy Industries, the maker of Subaru vehicles, advanced 10.3% and Mazda was up 8.3%. Nissan, which reportedly lost about 2,300 new vehicles in the tsunami and earthquake, rose 6.1%.

Although Tokyo Electric Power, which runs the Fukushima nuclear plant, continued to plunge losing 24.6% in today's trading, other plant builders and nuclear-related companies surged. Hitachi rallied 16.6%, Mitsubishi Corp. rose 10% and Toshiba edged up 2.1%. While nuclear power is suddenly out of favor, the reality is that Japan is a resource-poor nation, and nuclear energy is not likely to be abandoned. It's more likely that nuclear plant developers will have increased business as the country searches for technological solutions to make the plants safer and more disaster-proof. Other power companies also made headway with Kansai Electric Power up 7.2% and Chubu Electric Power up 3.8%.

Chinese mining companies climbed higher with Aluminum Corp. of China surging 10% and Inner Mongolia Baotou Steel Rare-Earth Hi-Tech soaring 7.1%. Jiangxi Copper gained 3.3% and Tongling Nonferrous Metals added 3.2%.

Chinese alternative energy companies got a boost as countries around the world re-consider the safety of nuclear power dependency. China Longyuan Power, a wind farm developer, gained 3.7% and Xinjiang Goldwind Science & Technology advanced 1%. In Hong Kong, solar energy firm China Singyes Solar Technologies saw a 4.8% gain.

Also in Hong Kong bargain hunters moved in profiting from yesterday's selloff . Metals companies rose with Chalco, officially called Aluminum Corp. of China, surging 3.6%, and Jiangxi Copper climbing 1.1%. Hong Kong & China Gas gained 2.5% on higher-than-expected net income.


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]]>Fukushima nuclear plantjapan nuclear crisisJapanEarthquaketoyotaLauren CooperWed, 16 Mar 2011 07:20:00 ESTNuclear Catastrophe Sinks Japanese Shareshttp://www.dailyfinance.com/2011/03/15/nuclear-catastrophe-japan/http://www.dailyfinance.com/2011/03/15/nuclear-catastrophe-japan/http://www.dailyfinance.com/2011/03/15/nuclear-catastrophe-japan/#commentsFiled under: ,

Asian markets closed lower Tuesday. In Japan the Nikkei 225 Index plunged 10.6% to 8,605. In Hong Kong the Hang Seng Index slid 2.9% to 22,678 and in China the Shanghai Composite Index fell 1.4% to end the day at 2,896.

Japanese shares are enduring a tsunami of their own as investors pull money out of a market that is becoming more and more unstable by the day. "If you have stability of forecasts and stability of data, that allows people to invest," Russell Investments's chief market strategist told Bloomberg. "That's why markets sell off when something goes from being uncertain to being unknowable."

Radiation Reaches Dangerous Levels

Japan's situation is worsening by the minute as Prime Minister Noto Kan warned that radiation levels are now reaching dangerous levels as a result of further explosions at Japan's Fukushima nuclear plant. Authorities in Tokyo, less than 150 miles from Fukushima, have detected higher radiation levels, although they are still insisting that the levels are not harmful to human health.

Shares in Tokyo Electric, which runs the Fukushima plant, plunged 24.7%. The fallout from Japan's crisis will most probably include lost business abroad -- already countries like Switzerland and Germany have suspended plans to build and replace nuclear plants until safety standards are re-assessed, according to the New York Times. And shares in blue chip companies that build nuclear reactors also nosedived. Toshiba careened 19% and Hitachi tumbled 13%. Mitsubishi Heavy Industries slumped 11% and Japan Steel works, which makes nuclear plant components dived 16%.

The Bank of Japan's $98 billion injection into the country's financial system was not enough to keep financial institutions buoyant in the face of such crisis. Mizuho Financial dropped 10%, Mitsubishi UFJ slumped 8.8% and Sumitomo Mitsui gave up 7.2%.

Hefty Losses Affect Every Sector

Building firms, which had seen increases in the wake of the disaster, were pummeled today. Taisei fell 13.9%, Kajima declined 13.1% and Obayashi sank 10.2%.

In Hong Kong fears are growing that nuclear fallout could affect a wider region. The Hong Kong Observatory says, "The chance of radiation from Japan reaching Hong Kong in the next several days is slim." But for those hearing pollution ratings of "fine" when the air outside is soupy, this may not be much of a comfort. Today property shares sank with Hang Lung plunging 6.3%, Henderson Land sliding 4.4% and Sun Hung Kai losing 3.4%. China Resources Land fell 3%, New World Development dropped 2.9% and Cheung Kong slipped 2.9%.

Insurers suffered severe losses with Ping An falling 6.1% and China Life down 3.3%. Banks also fell with Industrial & Commercial Bank of China off 2.9%, Bank of China and Bank of Communications both losing 2.2%.

In China manufacturers of nuclear-related products sustained steep losses. China First Heavy Industries sank 6.3% and Dongfang Electric slid 5.2%

Chinese coal producers closed lower on worries that the suspension of Japanese production will cut the usually large orders for Chinese coal. Yanzhou Coal Mining dropped 5.1% and China Shenhua Energy fell 2.7%.



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]]>bank of japanearthquakeFukushimaHitachijapanjapan earthquakejapan nuclear crisisjapan nuclear meltdownJapan nuclear plantsJapan Steel WorksJapanEarthquakeJapanSteelWorksMitsubishi Heavy IndustriesMitsubishiHeavyIndustriesTokyo ElectricToshibaLauren CooperTue, 15 Mar 2011 07:35:00 ESTJapanese Market Sags in Disaster Aftermathhttp://www.dailyfinance.com/2011/03/14/japanese-market-sags-in-disaster-aftermath/http://www.dailyfinance.com/2011/03/14/japanese-market-sags-in-disaster-aftermath/http://www.dailyfinance.com/2011/03/14/japanese-market-sags-in-disaster-aftermath/#commentsFiled under: ,

In Asia Monday Japan's Nikkei 225 Index plunged 6.2% to 9,620. Hong Kong's Hang Seng Index gained 0.4% to 23,346 and China's Shanghai Composite Index inched up 0.1% to 2,938.

In the aftermath of what Prime Minister Naoto Kan describes as Japan's worst disaster since 1945, Japanese shares plummeted. Businesses operated at a fraction of the usual pace as Tokyoites who braved the hobbled transport system spent hours commuting to work, delivery systems were at a standstill leaving shop shelves bare and many factories have been damaged or shut down.

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As the disasters mount, nuclear contamination is high on the list. The highly profitable firms that build nuclear reactors -- not only in Japan but in countries around the world -- suffered huge losses as investors wonder if nuclear power will remain in vogue now that the possibility of disaster has become a reality in one of the world's most technologically sophisticated countries.

Nuclear Power Companies Hit Hard

Hitachi Ltd., which constructs and operates nuclear power systems, plunged 16.2%. Just last Wednesday the firm was celebrating receiving design approval from the U.S. Nuclear Regulatory Commission for next-generation reactors slated to be built in Michigan, according to Reuters. Toshiba, which also builds nuclear facilities, nosedived 16.3%.

Other nuclear-related companies also sank with Japan Steel Works, a maker of nuclear power plant components, dropping 18.9% and Fuji Electric, which built Japan's first commercial power station in 1965 and still makes products for nuclear plants, fell 11.2%.

Japanese insurers were especially hard hit as the damage estimates will clearly continue to mount as less visible structural damage will add to the obvious destruction and loss of life. Dai-ichi Life Insurance tanked 18%, Tokio Marine dived 16% and MS&AD Insurance Group slid 11%.

Railway lines that suffered massive damage in Northern Japan where tracks and infrastructure were swept away by the tsunami are also reeling from a halt in service in areas further from the quake's epicenter. East Japan has reportedly canceled many of its rush hour trains, according to the Wall Street Journal's Japan Real Time blog, and most if its lines are closed with an average of 20% running -- in part thanks to the rolling black outs sapping power to the transport system. Commuters waiting for trains just west of Shibuya this morning were told that they would have to wait three hours for the next train into central Tokyo. East Japan Railway plunged 18.4% and West Japan Railway slid 3.1%.

Carmakers Careen Lower Along with Most Other Sectors

Honda reported damage to its Tochigi plant, where one employee is confirmed to have died when a wall collapsed in the company cafeteria. Honda and Toyota have both suspended nearly all operations for several days. Mazda fell 10%, Nissan plummeted 9.5%, Isuzu gave up 9.2%, Toyota was down 7.9% and Honda lost 6.5%.

Building firms are among those profiting from the disaster. TOA Corporation, a general contractor specializing in building and cleaning up harbor areas, rocketed up 48.5%. The company has expertise in building commercial and residential properties, erecting harbor facilities, dredging and reclamation. Taisei Corp. soared 19.9%, Kajima Corp. shot up 12.1% and Obayashi surged 10.6%.

In Hong Kong, steel producers ratcheted up on expectations that Japan will be in dire need of raw materials once it starts rebuilding. Angang Steel rose 4.8%, Citic Pacific climbed 4.8%, Maanshan Iron & Steel advanced 2.7%. Miners also advanced with Zhaojin Mining Industry rising 5.2% and Aluminum Corp. of China adding 0.7%.

Hong Kong-listed coal energy companies were also on the rise with China Shenhua rising 2.7% and China Coal adding 1.6%.

In China steel companies were in high demand with investors gambling that China will profit from selling to Japan as it recovers. Baoshan Iron & Steel gained 2.1% and Hebei Iron & Steel advanced 1.6%. But other miners fell, with Tongling Nonferrous Metals sinking 2.7% and Zijin Mining falling 0.2%.









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]]>asian marketsAsianMarketsearthquakehondajapaense marketsjapan earthquakejapan earthquake 2011japanese earthquakeToyotaLauren CooperMon, 14 Mar 2011 08:00:00 ESTAsian Markets Plunge on 8.8 Earthquake in Japanhttp://www.dailyfinance.com/2011/03/11/earthquake-japan-markets-plunge/http://www.dailyfinance.com/2011/03/11/earthquake-japan-markets-plunge/http://www.dailyfinance.com/2011/03/11/earthquake-japan-markets-plunge/#commentsFiled under: ,

Asian markets plunged Friday. In Japan the Nikkei 225 Index spiraled down 1.7% to 10,254 and in Hong Kong the Hang Seng Index dropped 1.6% to 23,250. China's Shanghai Composite Index lost 0.8% to close at 2,934.

Japan suffered a massive 8.8 earthquake today at 2:46 pm. It's the strongest earthquake to occur in the past century and the sixth largest recorded since record keeping began in 1900, Dr. Roger Musson of the British Geological Survey told the BBC.

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The quake was followed by a tsunami packing 33-foot-high waves that devastated Japan's coast just north of Tokyo. Central Tokyo has come to a standstill and workers are scrambling to find alternate routes home as train lines have ground to a halt and taxis are incredibly scarce. Most Tokyo skyscrapers are specially designed to withstand earthquakes, and could be the safest places to be for Japanese workers who have been conditioned since childhood to expect sudden earthquakes.

In a televised address, Prime minister Naoto Kan issued a statement confirming that the four nuclear power plants closest to the epicenter have been shut down and that no radiation has been released from any of the country's 55 operating nuclear plants. However, BBC television reports that a fire has broken out in a plant in northern Japan and authorities are struggling to amass enough electricity to pump water into the facility to cool it down. It has been classified as a nuclear emergency -- the first such announcement since 2000.

Banks and Insurance Companies Tumble

Shares in Japanese banks and financials tumbled, as traders continued working through the quake. Mitsui & Co. plunged 3.7%, Mitsubishi UFJ sank 2.5% and Mizuho Financial lost 1.2%.

Insurance companies were hard hit as the damage they'll be paying for was wrought in real-time. MS&AD Insurance dived 3.2% and Tokio Marine sank 2.6%.

Meanwhile, Japanese building firms surged as traders scooped up shares in the firms that will surely be overwhelmed with work as the country recovers from disaster. Kajima Corp. rocketed up 11.1%, Taisei surged 1.6% and general contractor Shimizu Corporation gained 1.2% and Obayashi advanced 0.9%, Cement producer Sumitomo Osaka rose 1%.

Within minutes of the shocks, shares in building firms based in Northern Japan spiked. Building firm Fukuda rallied 29.9% and Ueki Corp. catapulted up 23.1%.

In Hong Kong shares also plunged as fears spread that the Japanese earthquake could result in tsunami waves in locations as close as Taipei and as far as Los Angeles. Compounded by a gloomy U.S. jobs report, shares in retail firms supplying major U.S. stores closed lower. Li & Fung, which provides clothes and toys to Walmart as well as Abercrombie and Target, dived 2.6%. Esprit lost 2.2% and sports shoe manufacturer Yue Yuen dipped 0.2%. China Resources, which has businesses ranging from retail to food and property, plunged 3.9%.

Hong Kong property developers suffered from the uncertainty with Hang Lung nosediving 2.7%, Henderson Land sliding 2.4%, Cheung Kong slipping 1.4%, Sino Land down 1.1% and New World losing 0.6%. China Overseas Land & Investment tumbled 3%.

Chinese property firms were also among the hardest hit after the Ministry of Land and Resources told local governments to curb the increase in land prices, including capping prices paid for land sold at auction, reports Bloomberg. Gemdale slumped 2.2%, China Vanke sank 2% and Poly Real Estate lost 1.7%.

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]]>asian marketsjapan earthquakejapan tsunamijapanese earthquaketsunamiLauren CooperFri, 11 Mar 2011 07:20:00 ESTAsian Markets Rise as Japanese Machinery Orders Ramp Uphttp://www.dailyfinance.com/2011/03/09/asian-markets-rise-as-japanese-machinery-orders-ramp-up/http://www.dailyfinance.com/2011/03/09/asian-markets-rise-as-japanese-machinery-orders-ramp-up/http://www.dailyfinance.com/2011/03/09/asian-markets-rise-as-japanese-machinery-orders-ramp-up/#commentsFiled under: ,

Asian markets rose Wednesday. In Japan the Nikkei 225 Index climbed 0.6% to 10,590 and in Hong Kong the Hang Seng Index edged up 0.4% to 23,810. China's Shanghai Composite Index added 0.1% to close at 3,002.

Japan's economy may finally be bouncing back. Figures released yesterday show that machinery orders jumped 4.2% in January as compared with December orders. According to the Wall Street Journal, the increase was higher than expected and the result of a higher-than-expected 7.2% rise in demand from manufacturers.

Analysts now have high hopes for the Japanese market, which has been at a near standstill. "There's a real chance that Japanese stocks will be the world's best performer," Kazuhiro Miyake, Daiwa Securities Capital Markets' chief strategist told Bloomberg. "Investors are rediscovering Japan. Even with the yen appreciating very sharply, you're seeing earnings increase by a large margin."

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In Tokyo trading Fujikura, a maker of optical transmission systems and a variety of cables, jumped 3.5% and IHI, which makes heavy machinery, nuclear power plants and rocket propulsion systems, gained 1.9%. Kawasaki Heavy Industries, a maker of heavy equipment from turbines and submarine engines to ships and train cars, shot up 1.8%, and industrial robot maker Fanuc advanced 0.6%.

IT equipment companies were on the rise with Yokogawa Electric surging 5.6% and Sumco, which makes silicon wafers used for solar batteries and semiconductor equipment climbing 2.7%. NTT Data soared 2.2% and Tokyo Electron advanced 1%.

Battered Airlines Rebound as Oil Prices Stabilize

In Hong Kong easing oil prices bolstered the airline sector, recently reeling from the anticipated effects of sky-high oil prices. Cathay Pacific soared 4.5%. The company is reporting a tripling of net income in the last year and the company now plans to buy 25 new planes, which travelers hope will be decked out with more comfortable seats than the last round.

Passengers who frequently fly between Hong Kong and London report that Cathay's most recent seat updates with a sliding seat base have been a disaster. And this extends to the usually top-notch business class as well, where the herringbone pattern of the seats leaves customers feeling claustrophobic and trapped. But the airline has creatively tapped into key customer bases like offering sweet deals on bundles of flights to Hong Kong families with children attending boarding school abroad.

There was good news for Hong Kong-listed Air China, which advanced 1.1%, but other airlines declined. China Southern Airlines fell 1.3% and China Eastern Airlines lost 0.9%.

Hong Kong shipping companies, recently hit by the rise in oil prices gained today. Cosco International motored up 6.3% and Cosco Pacific added 1.1%.

Top performers on Shanghai's big board included ship-building company China CSSC, which rallied 6%, and Offshore Oil Engineering, which shot up 6.6% thanks to parent Cnooc's plans to sink more cash into deep-water oil exploration in China and into various overseas projects.




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]]>Air Chinaasian marketsCathay PacificChina Southern AirlinesCnoocCosco Internationaloil pricesLauren CooperWed, 09 Mar 2011 06:45:00 ESTChinese Reserve Ratios Escape Recent Hike, Asian Markets Risehttp://www.dailyfinance.com/2011/03/08/chinese-reserve-ratios-escape-recent-hike-markets-rise/http://www.dailyfinance.com/2011/03/08/chinese-reserve-ratios-escape-recent-hike-markets-rise/http://www.dailyfinance.com/2011/03/08/chinese-reserve-ratios-escape-recent-hike-markets-rise/#commentsFiled under: ,

In Asia Tuesday the Hang Seng rose 1.7% in Hong Kong to close at 23,712 and the Shanghai Composite inched up 0.1% to 3,000. In Japan the Nikkei 225 Index gained 0.2% to end the day at 10,525.

Asian markets were quick to react to a report that China has canceled its last round of reserve ratio hikes, according to Reuters. Total banking loans given out in February sank to less than 600 billion yuan, satisfying Beijing that the amount of cash swishing around the marketplace is on the decline, and will hopefully lead to a decrease in recent inflation figures. Reserve requirements for China's largest banks now stand at a record 19.5% and despite today's news, economists are expecting further increases.

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In Hong Kong banking shares climbed with HSBC jumping 2.3%, China Construction Bank soaring 1.6% and Agricultural Bank of China rising 1.2%.

Gold hit $1,434.50 in New York yesterday, giving a boost to some Hong Kong mining companies. Zhaojin Mining, which has reportedly put aside $76 million to buy gold mines, motored up 3.5%. Zijin Mining advanced 0.8% but Real Gold Mining declined 0.5%

Middle East Unrest Boosts Energy Companies

Oil companies continued on their upward trajectory as dwindling fuel output in the Middle East increased value. Sinopec rallied 3.6%, Petrochina rose 1.8% and Cnooc advanced 1.2%.

In China real estate developers surged after China Vanke reported a 37% year-on-year increase in net income for 2010, according to capitalvue.com, putting its annual takings at $1.1 billion and making it the number one commercial residential property company in Shenzhen and Beijing. Gemdale gained 1.2% and Poly Real Estate advanced 1%.

Chinese car companies closed higher with Beiqi Foton jumping 3.4%. Beiqi makes hybrid buses and SUVs and according to steelguru.com, it's signed a deal to deliver 50 Midi Pure Electricity cars to a Beijing cab company. Other car makers also rose with Anhui Jianghuai rising 1.5% and Dongfeng up 0.9%, but FAW lost 1.6%.

In Tokyo Hitachi was the talk of the trading floor, rising 1.8% after agreeing to sell its hard-disk drive unit to Western Digital for around $4.3 billion, according to Bloomberg. Let's just hope that the acquisition doesn't corrupt Western Digital's unflaggingly reliable products -- its hard drives are the only ones that never seem to let customers down.

But gains were nearly balanced by losses today. Oki Electric, a maker of ATM machines and communications equipment, plunged 6% after forecasting a net loss of about $342 million for the year ending March 31st. The firm is blaming the loss on retirement benefit payouts, job cuts and reduced payouts.

Japanese shipping lines also lost value as the price of oil threatens to force ships to slow down in order to conserve fuel. Kawasaki Kisen Kaisha slumped 2.8% and Nippon Yusen fell 2.5%.

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]]>asian marketsChinese bankscnoochang sengNikkei 225petrochinareserve ratiosshanghai compositeLauren CooperTue, 08 Mar 2011 07:00:00 ESTAsian Markets Mixed Amid Rising Oil Prices and Japan's Political Shakeuphttp://www.dailyfinance.com/2011/03/07/asian-markets-mixed-amid-rising-oil-prices-and-japans-political/http://www.dailyfinance.com/2011/03/07/asian-markets-mixed-amid-rising-oil-prices-and-japans-political/http://www.dailyfinance.com/2011/03/07/asian-markets-mixed-amid-rising-oil-prices-and-japans-political/#commentsFiled under: , ,

Asian Markets were mixed Monday. In Hong Kong the Hang Seng Index dipped 0.4% to 23,313 and in Japan the Nikkei 225 Index tumbled 1.8% to 10,505. Meanwhile, China's Shanghai Composite Index surged 1.8% to end the day at 2,996.

Markets reacted to a surge in the price of oil, which crossed the $106-per-barrel line in Asian trading today. Fighting in Libya has curtailed the nation's oil output by at least three quarters, according to the Financial Times, and according to the International Energy Agency, January output was at 1.69 million barrels per day. Other countries, such as Saudi Arabia, are said to be picking up the slack, but the uncertainty is rattling markets.

In Hong Kong airline shares plunged in anticipation of higher fuel prices. Air China dived 3.9%, Cathay Pacific tumbled 3.5%, China Southern Airlines lost 2.1% and China Eastern Airlines fell 1.7%.

Hong Kong developers sank on worries that global economic recovery will falter as high oil prices add to the cost of everything from travel to manufacturing goods to transporting products around the world. Cheung Kong and Sun Hung Kai both slumped 1.3%, China Resource Land dipped 1.1%, Hang Lung fell 0.9% and New World Development lost 0.8%.

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Other big losers included hair care product maker BaWang, which announced on Friday that it expects a loss of CNY 130 million ($20 million) for 2010. The company has been on a slippery slope since a Hong Kong magazine reported that the company's tinctures contain traces of a cancer causing chemical, but the Wall Street Journal points out that the carcinogen is a common byproduct in cosmetics production and the products still meet E.U. and FDA safety standards. BaWang slid 5%, not good news for the firm's sword-wielding spokesman Jackie Chan.

Mining Companies Benefit From Rising Gold

Companies that climbed higher in today's trading included Zhaojin Mining, which jumped 5.6% on a massive surge in annual profits. Real Gold Mining leaped 3.8% and Zijin Mining rose 1.2%, both helped by an increase in the price of gold.

Political uncertainty in Japan undermined investors already jittery over the crisis in the Middle East. Foreign Minister Seiji Maehara tendered his resignation after admitting accepting a paltry $610 political donation from a South Korean national -- a practice distinctly banned by Japanese law, according to the BBC. The resignation is seen as a major blow to Prime Minister Naoto Kan's government, which has been working double-time to straighten out the country's finances, and especially since Maehara was widely viewed as Kan's successor.

Japanese building and engineering firms closed lower with Hazama Corp. nosediving 2.6%, Kajima losing 2.3%, Nishimatsu Construction down 1.8% and Taisei declining 1.1%.

Electronics exporters fell with Canon slumping 2.4%, Sony falling 1.8% and Casio Computer and Sharp both dipping 1.2%.

In China, it was quite another story, with the country's benchmark index climbing higher as the government issued statements saying domestic consumption is the key to positive economic growth. Appliance makers surged with TV maker Hisense Electric rallying 5.7%, Gree Electric Appliances shooting up 4.6% and Qingdao Haier, a refrigerator company, zipping up 4.4%.

Chinese energy companies capitalized on the expectation that the cost of power will continue to rise. China Shenhua, a coal-based energy company and China Coal Energy both hit the 10% daily maximum, while oil company PetroChina surged 2.6% and oil processor Sinopec Shanghai Petrochemical advanced 1.6%.

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]]>asian marketslibyalibya violenceoilOilPricesLauren CooperMon, 07 Mar 2011 07:00:00 ESTU.S. Jobless Claims Report Sparks Rise in Asian Marketshttp://www.dailyfinance.com/2011/03/04/drop-in-u-s-unemployment-sparks-rise-in-asian-markets/http://www.dailyfinance.com/2011/03/04/drop-in-u-s-unemployment-sparks-rise-in-asian-markets/http://www.dailyfinance.com/2011/03/04/drop-in-u-s-unemployment-sparks-rise-in-asian-markets/#commentsFiled under: ,

Asian markets rose Friday. In Hong Kong the Hang Seng Index gained 1.2% to close at 23,409 and in China the Shanghai Composite Index advanced 1.4% to 2,942. Japan's's Nikkei 225 Index added 1% to end the week at 10,694.

A fall in U.S. applications for unemployment benefits sparked a buying spree in Asia. According to figures released by the Labor Department, 20,000 fewer people applied for jobless benefits last week bringing the number of folks receiving unemployment checks to the lowest level since the fall of 2008, according to Bloomberg.

In Hong Kong, shares of shoe and clothing exporters shot up with Yue Yuen Holdings, which makes athletic shoes for the likes of Adidas, Nike and Puma surged 4.5% and Li & Fung, distributor of Asian-made clothing and toys climbed 4.4%. Esprit, maker of trendy clothes popular in Europe and the U.S. advanced 2.7%.

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Foxconn, the Hong Kong subsidiary of Taiwanese Hon Hai, which is contracted to make mobile phones and gadgets like the iPhone and iPad, gained 1.5%, following yesterday's unveiling of Apple's (AAPL) iPad 2. Meanwhile, Chinese Internet and telecom firms climbed higher. Tencent scored a 4.4% rise on the tails of an announcement that Groupon, the U.S. based deals website, will team up with Tencent to offer group-buying services in Beijing and Shanghai, according to the Wall Street Journal -- a great business plan considering the Chinese appetite for bargain shopping. Hutchison Communications surged 3.2% and China Mobile advanced 1.2%.

In China, building-related stocks rallied in anticipation of tomorrow's National People's Congress meetings to discuss economic development including plans to add 36 million affordable homes over the next five years. Baoshan Iron & Steel climbed 2% and Hebei Iron & Steel gained 1.8%. Cement makers, which provide materials for China's signature concrete slab apartment blocks, advanced, with Anhui Conch rising 3% and Sany Heavy Industry jumping 1.8%. Today Maanshan Iron & Steel shot up 7.7%, also helped by the news that it will ramp up production of wheels for China's high-speed rail cars.

In Japan car companies got a boost from the positive U.S. jobless figures, as well as a weaker yen, translating into higher earnings once overseas earnings are repatriated and converted into the local currency. Mazda motored up 3.5%, Isuzu jumped 1.4%, Nissan advanced 1.3% and Toyota gained 1.2%. Honda declined 0.1%.

Sumitomo Electric Industries catapulted up 8.1% after reports circulated that it has developed an electric car battery that should cost only 10% of the price of the current lithium ion batteries. The batteries, which use molten-salt as electroytes and could be available in 2015, were developed with help from Kyoto University, reports greencarcongress.com.

Japanese electronics exporters were also among today's gainers with Konica Minolta climbing 4.2%, Canon surging 1.8% and Sony advancing 1.2%.

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]]>canonfoxconniPad 2SonytencentLauren CooperFri, 04 Mar 2011 07:00:00 ESTU.S. Employment Figures Buoy Nikkei, Buffett's BYD Boosts Hang Senghttp://www.dailyfinance.com/2011/03/03/u-s-employment-figures-buoy-nikkei-buffetts-byd-boosts-hang-s/http://www.dailyfinance.com/2011/03/03/u-s-employment-figures-buoy-nikkei-buffetts-byd-boosts-hang-s/http://www.dailyfinance.com/2011/03/03/u-s-employment-figures-buoy-nikkei-buffetts-byd-boosts-hang-s/#commentsFiled under: ,

Asian markets were mixed Thursday. In Japan the Nikkei 225 Index rose 0.9% to 10,586 and in Hong Kong the Hang Seng Index added 0.3% to close at 23,122. In China the Shanghai Composite Index edged down 0.4% to end the session at 2,903.

A slight slip in the price of oil allowed Japanese investors to focus attention on positive employment figures out of the U.S. instead, where private employers bumped up payrolls with 217,000 jobs last month, according to a survey by ADP. This data will surprise the more than 50,000 workers that private placement firm Challenger, Gray and Christmas say were slated to lose their jobs in February, and many will await the final word from the U.S. Labor Department, which will release its report tomorrow morning.

In Japan shares in machinery exporters climbed higher with Okuma, which manufactures heavy tools like lathes and grinders used to make everything from medical implants to airplane landing gear, surging 6.3%, and Mitsubishi Heavy Industries rocketing up 5.4%. Hitachi Construction Machinery shot up 3.5% on high hopes for increased overseas sales of its bulldozers, excavators and cranes.

Fuji Heavy, which makes Subaru all-wheel drive cars as well as jet engines, rose 0.9%, Honda also increased 0.9% and Isuzu advanced 0.8%. Mazda and Toyota both lost value with Mazda slipping 1.5% and Toyota dipping 0.1%.

Meanwhile, rumors that Yahoo plans to dump its 35% stake in Yahoo Japan have fueled investor buying, with Softbank, the alleged receiver of the shares, continuing to rally today. Shares in the Japanese telecom company shot up 4.8%, while Yahoo Japan tumbled 1.5%.

In Hong Kong shares in Buffett-backed BYD climbed higher on an announcement from the company's billionaire founder Wang Chuanfu that BYD electric cars will be available in Europe next year and that BYD has won approval for a joint venture with Daimler, according to the China Post. If priced right, the Chinese-built vehicles will be a welcome addition to the poor selection available in a country that bestows hefty road tax and parking discounts to electric car drivers. Today, shares surged 5.1% -- although they are still worth less than half their October 2010 value.

Hong Kong-listed banks climbed with Standard Chartered leaping 4.4%, China Merchants Bank jumping 2.3%, China Construction Bank and Industrial & Commercial Bank of China both adding 1% and HSBC up 0.4%.

In China harsh news from the International Air Transport Association took a toll on airline stocks. The industry group predicts that rising oil prices will limit profits for the sector to $8.6 billion -- down from the $9.1 billion they forecast just a few months ago, says Market Watch, China Southern Airlines plunged 2.1%, Air China fell 1.8%, Hainan Airlines slipped 1.4% and China Eastern Airlines slid 1.1%.

On a more positive note, Chinese banks rose in Mainland trading as well, where Merchants Bank surged 4.2% and Agricultural Bank of China advanced 1.9%.

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]]>asian marketsBuffettBYDelectric carsemployment dataWarrenBuffettLauren CooperThu, 03 Mar 2011 07:00:00 ESTAsian Markets Slide as Oil Passes $100http://www.dailyfinance.com/2011/03/02/asian-markets-slide-as-oil-passes-100/http://www.dailyfinance.com/2011/03/02/asian-markets-slide-as-oil-passes-100/http://www.dailyfinance.com/2011/03/02/asian-markets-slide-as-oil-passes-100/#commentsFiled under: ,

Asian markets closed lower Wednesday. In Japan the Nikkei 225 Index slid 2.4% to 10,492 and in Hong Kong the Hang Seng Index fell 1.5% to 23,049. China's Shanghai Composite Index edged down 0.2% to end the day at 2,914.

Investors around the world focused on rapidly rising oil prices, which broke the $100-per-barrel mark in response to growing tensions in the Middle East. Higher oil prices mean higher costs for manufacturers, and today Japanese producers took a hit as investors considered today's rise in the value of the yen, higher energy costs and a slowdown in the global economic recovery.

Bad News for Automakers

This was not good news for car makers as Isuzu plummeted 3.7%, Toyota plunged 2.9%, Mazda tumbled 2.8% and Honda slid 2.5%. Makers of car parts also slumped with Jtekt, a Toyota partner diving 3.5%, Asahi Glass falling 4.3% and Alps, an automotive electronics firm, declining 2.1%. Japanese-listed shares of Bridgestone slipped 1.7%.

Electronics exporters pulled the Nikkei lower with Sharp losing 4.8% after Morgan Stanley downgraded its shares. Pioneer gave up 4.4%, Sanyo Electric fell 2.4% and Sony lost 2.2%. Competing gaming company Nintendo plunged 3.7% with some suspecting that enthusiasts purchased shares long before last weekend's launch of the 3DS, helping Nintendo shares rise more than 20% since last October, according to Reuters.

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Shares in Yahoo Japan spiked 3.7% today on rumors that it's discussing dumping its 35% stake in a joint venture with Softbank. Softbank is denying that any discussions have taken place, but its shares tumbled 3.6%. Some speculate that Yahoo is likely to avoid structuring any deal as a sale in order to avoid paying hefty taxes on any proceeds, says Bloomberg. Coming on the heels of an announcement that Yahoo plans to eliminate 1% of its workforce, this may not be the best publicity move, as it could irk taxpayers tired of hearing about corporate tax avoidance.

and Chinese Railways . . .

Turmoil in Libya had a major effect on Hong Kong-listed Chinese railway firms that have scored contracts around the world. China Railway Construction plunged 7.8% after halting three construction projects in Libya and racing to evacuate its workers.

Sinopec and Cnooc also fell today after successfully suspending Libyan operations and sending workers back to China. Cnooc evacuated all 77 of its Chinese employees and Sinopec sent its seven employees home, according to Reuters. But shares in Chinese-listed PetroChina were up 0.3%.

In Hong Kong, airline shares tumbled in reaction to the higher oil prices. China Southern Airlines nosedived 3.5%, Cathay Pacific Airways and Air China both slumped 2.6%, China Eastern Airlines sank 1.5%. Chinese-listed airline shares also sank.

On the brighter side, BYD, Warren Buffett's electric car hopeful, rallied 9.2% in Hong Kong on reports that its cars will be available in Europe sometime next year.

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]]>isuzuMazdanintendotoyotaLauren CooperWed, 02 Mar 2011 06:50:00 ESTAsian Shares Climb, HSBC Snags Pre-Earnings Report Gainshttp://www.dailyfinance.com/2011/02/28/hsbc-earnings/http://www.dailyfinance.com/2011/02/28/hsbc-earnings/http://www.dailyfinance.com/2011/02/28/hsbc-earnings/#commentsFiled under: , , , ,

Asian markets climbed higher Monday. In Hong Kong the Hang Seng Index rose 1.4% to 23,338 and in China the Shanghai Composite advanced 0.9% to 2,905. In Japan the Nikkei 225 Index added 0.9% to end the day at 10,624.

In Hong Kong, HSBC shares racked up a 1.5% gain before the company's announcement early today in London that it had missed earnings estimates. The banking giant's net income clocked in at $13.2 billion for 2010 -- over $7 billion more than the previous year, according to Bloomberg, but still below the $13.7 billion analysts expected.

In more disappointing news, HSBC's cost-efficiency ratio rose from 52% to 55.2%, a number that Chairman Douglas Flint called "unacceptable." Among the reasons the top brass gave for the gloomy report were rising staff costs and the Middle East situation, where HSBC has a major presence and used to operate under the names British Bank of the Middle East and Imperial Bank of Persia. The bank's shares are already falling in London in early trading.

Other banks also rose in Hong Kong with Bank of China surging 2.2%, Industrial & Commercial Bank of China soaring 1.9%, Agricultural Bank of China climbing 1.9% and China Construction Bank gaining 1.6%.

Hong Kong-listed developers climbed higher with Henderson Land shooting up 3%, Hang Lung advancing 1.7% and New World Development up 1.3%

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Other big gainers included Great Wall Motor, which makes SUVs like the square-looking Coolbear and the Wingle pick-up truck. Shares rocketed up 6.7% after Nomura said new taxes wouldn't have much impact on the carmaker's business. There are also rumors that Great Wall could begin collaborating with Jaguar and Land Rover, reports China Daily. This would no doubt appeal to the Chinese consumer's hunger for the ultimate luxury products.

In Shanghai it was affordable housing that drove the market higher. Government plans to build more low-income housing boosted the value of cement-related companies like Sany Heavy, a maker of machinery for concrete construction. Today shares surged 8.5%. Changsha Zoomlion Heavy Industry Science & Technology Development, another concrete machinery firm, zipped up 4.7%, Huaxin Cement motored up 3% and Gansu Qilianshan Cement rose 2%.

The appliance sector also gained in China with GD Midea leaping 6.6%, Qingdao Haier rallying 6.3% and Gree climbing 5.4%.

In Japan Mizuho Securities jumped 12% on reports that its parent company is considering rolling it and its other subsidiaries into a wholly owned company. Mizuho Trust & Banking surged 6% and Mizuho Financial advanced 1.8%.

Among electronics exporters Pioneer gained 4.5%, Casio Computer leaped 4% and Sony added 0.9%. But the news was not so hot for Nintendo, which plunged 4.1% despite the debut of its much-hyped glasses-free 3DS, which hit Japanese shelves over the weekend. According to Nintendo, all 400,000 units in the first shipment sold out within hours, and the reviewers are raving. Computerandvideogames.com calls the gizmo, which will begin selling in the U.S. on March 27 for $250 each, "More than a little bit magical."

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]]>asian marketsBankOfChinaCasioHSBCNintendoPioneerSonyLauren CooperMon, 28 Feb 2011 06:45:00 EST