Press Releases

Sydney, Mar 5, 2010 (ABN Newswire) - Friday Asian stocks received a positive lead from Wall Street. US stocks overnight posted a slim gain, supported by better-than-expected retail sales data and analyst upgrades of a batch of blue-chip companies. Yesterday most Asian markets closed lower on renewed worries about China's policy tightening. Hong Kong's Hang Seng Index slid 1.4 per cent, while Shanghai Composite lost 2.4 per cent, with China's banking and property shares dropping sharply. Singapore market was also impacted by China's property bubble concerns, and Straits Times slid 0.5 per cent. Japan's Nikkei 225 was off 1.1 per cent as strong yen hurt exporters.

Company News

Kirin Holdings (TYO:2503) wants to raise its 48 percent stake in San Miguel Brewery (PSE:SMB), possibly as high as 100 percent. While the company has not yet built a solid business in southeast Asia, Kirin Holding plans to place a higher priority on that region than China. Kirin Holdings Co. believes it is necessary to increase economies of scale in Japan through mergers, acquisitions and alliances.

Japan-based semiconductor manufacturer Elpida Memory Inc. (TYO:6665) said it will take over part of U.S. chipmaker Spansion's (OTC:SPSNQ) flash memory research-and-development assets and hire Spansion's technicians. Elpida aims to tap growing demand for smart phones and better compete with its stronger South Korean rivals. The exact cost of the deal was not disclosed, but it will be considerably lower than Y3 billion-Y5 billion reported in the Nikkei Thursday, Elpida spokesman said.

Operations at Taiwan-based semiconductor companies were temporarily disrupted by a serious earthquake shook Taiwan early Thursday. Taiwan Semiconductor Manufacturing Co. (NYSE:TSM), the world's largest contract chip maker by revenue, said wafer production at its production lines in Tainan has been disrupted. Chi Mei Optoelectronics Corporation (TPE:3009) said the company has restored most operations after it halted operations and evacuated its factories and headquarters in southern Taiwan. Advanced Semiconductor Engineering (TPE:2311) has restarted operations at 19 plants.

China Merchants Bank (SHA:600036) (HKG:3968) said on Thursday it will have no need to raise additional capital for the next three years after its recent launch of a rights issue to shore up its balance sheet. Earlier this week, China merchants Bank said it would launch a $3.2 billion rights issue, following domestic peers such as Bank of Communications (SHA:601328) (HKG:3328) and Bank of China (SHA:601988) (HKG:3988).

Contact

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