Press Releases

Sydney, Feb 22, 2010 (ABN Newswire) - US stocks Friday closed modestly higher as investors increasingly viewed Federal Reserve's surprise move to raise its discount rate as an important signal that US policymakers feel confident in financial system recovery. The market was also boosted by the Labor Department's report that consumer prices barely rose in January and core inflation dropped for the first time since 1982. For the week, Dow index surged 3 per cent, the S&P 500 rose 3.1 per cent, and the Nasdaq gained 2.8 per cent.

Asian shares Monday are expected to be buoyed after Wall Street delivered its best week of the year. China's Shanghai bourse will open today after a long holiday for the Lunar New Year. The Hong Kong and Tokyo stocks lost more than 2 percent on Friday on U.S. Federal Reserve's decision to raise its discount rate. The discount rate hike also sent commodities prices lower and hit resources shares in the region.

Company News

Shares in Takeda Pharmaceutical (TYO:4502) rose today as US safety reviewers compared drug maker GlaxoSmithKline's (LON:GSK) (NYSE:GSK) Avandia to Takeda Pharmaceutical's diabetes drug Actos and said Avandia has an increased risk of heart attack and heart failure.

Citic Securities Co. (SHA:600030), China's largest brokerage by assets, is in discussions with Hong Kong- based CLSA Asia-Pacific Markets about buying a minority stake in CLSA, as part of an effort to expand business abroad, reported a Chinese media. The two companies have yet to reach a purchase agreement. The market believes more mainland brokerages are interested in buying local securities firms.

South Korean conglomerate STX Group has decided not to join the bidding for a stake in Daewoo Engineering & Construction Co. (SEO:047040), STX Group's holding firm STX Corp (SEO:011810) said on Monday. STX Group said last week it may team up with state-run Korea Development Bank to jointly purchase Daewoo E&C, the country's No. 4 construction firm by market value.

Shares of Nikon Corp (TYO:7731) climbed on Monday as the company said its digital camera sales are likely to beat its forecast for the year to March, driven by strong demand in China and other parts of Asia. The company said earlier this month it expects digital single-lens reflex (SLR) camera sales of 3.55 million units in the 2009/10 financial year, and digital compact camera sales of 11.5 million units. Now Nikon expects sales of its high-end camera will likely beat its target.

Contact

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