Press Releases

Sydney, Nov 13, 2009 (ABN Newswire) - Asian stock markets were broadly lower Friday following the weakness in Wall Street. Chinese shares also fell on profit taking, but airline equities rose across the board on a new pricing mechanism of fuel surcharge to take effect this weekend.

South Korean stocks started slightly higher on the drop of the won this morning. Yesterday Japanese exporters were also supported by yen weakness against US dollar. US Treasury Secretary Timothy Geithner said that it is very important to the US that the dollar remains strong. He declined to comment on a weak Chinese currency concern. But China hinted that it may allow the yuan to appreciate but sudden upward movement in the yuan could slow China's economic growth.

Company News

Japan Airlines Corp (TYO:9205), Asia's largest carrier by revenue, is now seeking its fourth state bailout since 2001 from the Enterprise Turnaround Initiative Corp, a government-backed turnaround fund. JAL is due to announce its April-September results this afternoon. Analysts expect its operating loss forecast to widen compared to the previous projection of 59 billion yen loss for the financial year to next March. But JAL plans not to give its latest annual projections in this half year result.

Japanese casual clothing chain operator Fast Retailing Co. (TYO:9983) plans to launch 119 Uniqlo stores at home and abroad in the year ending August 2010. With a focus on large stores, domestic openings will total just 60. But 59 new sites are planned in five countries, including China and South Korea.

U.K.'s largest retailer Tesco PLC (LON:TSCO) said it will build three shopping malls in China in partnership with Asian investors as it seeks to expand its presence in the country. The supermarket group has entered into a joint venture with a syndicate of leading Asian investors to build the malls in Anshan, Fushan and Qinhuangdao. Tesco will be a 50% partner in the venture, with HSBC Nan Fung China Real Estate Fund, Singapore's Metro Holdings Ltd (SIN:M01) and Hong Kong's Nan Fung Group compaleting the syndicate.

China Minsheng Banking Corp (SHA:600016), planning to raise as much as HK$31.56 billion through a Hong Kong listing, has drawn US$14.1 billion worth of orders from international investors before opening its initial public offering to local investors, a banking source said. The institutional tranche has already been about three times oversubscribed since book building was launched on Monday.

State-run Saudi Aramco has recently resumed negotiations with China Petroleum and Chemical Corp.(Sinopec) (SHA:600028), over investing in one of the latter's refineries located in Qingdao. Saudi Arabia is China's No.1 crude supplier, making up 20 of total imports into the world's second-largest oil consumer.

Contact

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