Press Releases

Sydney, Feb 17, 2009 (ABN Newswire) - Asia's major markets ended mostly lower yesterday. Tokyo stocks were hit by the data of huge contraction in the economy, but Shanghai Composite outperformed the Asian markets backed by hopes of further government economic stimulus measures, which also boosted the Hong Kong shares.

Today Taiwan and Hong Kong stocks opened lower, weighed down by some unfavourable earnings results. Tokyo market extended its downward streak as investors are cautous ahead of a deadline for the troubled U.S. automakers to submit their restructuring plans to the U.S. government.

Asia Economy Watch

Standard & Poor's forecasts South Korea's economy will contract by about 3.5 percent this year. Meanwhile Nomura Holdings Inc. also cut its forecast for Korea's gross domestic product for the second time in a month and says the economy will shrink 6 per cent in 2009.

Standard & Poor's downgraded India's sovereign ratings over the next few months, pointing out that India's fiscal position has changed to worse.

Japan's Cabinet Office is expected to downgrade its economic assessment for a fifth consecutive month after its GDP marked a sharp decline.

Company News

Japanese trading giant Itochu Corp.(TYO:8001) has agreed to buy a stake in Chinese garment maker Ningbo Shanshan Group Co. for US$108.7 million. Itochu will acquire the stake from Shanshan Holdings Ltd. Shanshan Holdings Ltd. will transfer 25 percent of the shares it holds in Shanshan Group to Itochu Corporation, and another 3 percent to Itochu (China) Holding Co.

All Nippon Airways (TYO:9202) plans to cut its fuel surcharges on international flights by an average 89 pct in April in a bid to spur air travel demand.

Taiwan-based computer manufacturer Acer Inc. (TPE:2353) has announced a move into the mobile-phone market, unveiling eight "smartphones", its first range of high-end handsets.

Singapore Airlines (SIN:C6L) was forced to cut more flights and discuss with unions to reduce staff costs, including having employees go on no-pay leave, retire early, work fewer days and take a pay cut.

Eight different groups of bidders, including Vale(NYSE:RIO), Xstrata(LON:XTA) and Rio Tinto(ASX:RIO), have submitted proposals to develop Mongolia's prized US$2 billion Tavan Tolgoi coal mine, market sources said.

CNPC (Hong Kong) Ltd. (HKG:0135) said it will buy a stake of 51.01% in China Natural Gas Co. in mainland China for CNY435.2 million as part of an expansion of its gas operations. China Natural Gas is a non-wholly owned unit of China National Petroleum Corp.

Ping An Insurance (Group) Co. of China (HKG:2318) said its trust unit has launched a money broking joint venture with Compagnie Financiere Tradition (SWF:CFT) of Switzerland.

Contact

Michelle Liang Asia Business News Asia Bureau Tel: +61-2-9247-4344 Email: michelle.liang@abnnewswire.net