Asian Markets Overview of January 27

U.S. stocks closed slightly lower on Tuesday, giving up early gains boosted by consumer confidence data and strong earnings from Apple. Investors remained cautious as there were continued concerns over bank regulation plans.

Asian markets fell sharply yesterday amid ongoing worries over US banks restriction and China's limits on bank lending. The Shanghai Composite Index and Hong Kong's Hang Seng Index each fell 2.4%, while Taiwan's Taiex tumbled 3.5%. Japan's Nikkei 225 Average was down 1.8% and South Korea's Kospi lost 2.0%.

Company News

Sumitomo Metal Industries Ltd. (TYO:5405) and Sumitomo Corp. (TYO:8053) expect to receive a EUR91 million order from Nord Stream AG to supply coated steel pipes for a natural gas pipeline connecting Russia and European countries. The pair has received an informal notice of awarding the contract from Nord Stream, a consortium formed by Gazprom OAO (LON:GAZP), E. ON Ruhrgas AG, BASF/Wintershall Holding AG and N.V. Nederlandse Gasunie.

PSA Peugeot Citroen SA (EPA:UG) said it was still in exploratory discussions with Mitsubishi Motors Corp. (TYO:7211) to form a stronger partnership in response to reports that talks between the two automaker were nearly stalled due to valuation hurdles. Mitsubishi Motors also said a capital alliance is possible.

Korean automaker Hyundai Motor Co. (SEO:005380) is studying a possible entry into the low cost hatchback market in Brazil, the company said Tuesday. The company aims to build a new assembly line in Sao Paulo to manufacture automobiles that can compete with Volkswagen's Gol the Fiat's Palio in Brazil.

Japan's Kyushu Electric Power Co. (TYO:9508) has reached a basic agreement with Chevron Corp.(NYSE:CVX) to take part in a project to tap and liquefy natural gas from a field in Wheatstone, northwest Australia. Kyushu will buy 300,000 tonnes a year of LNG from the Chevron-operated Gorgon project over 15 years and 700,000tpa of LNG from Wheatstone for up to 20 years. Kyushu Electric will acquire a 1.37 percent interest in the Wheatstone project.

Keppel Corp. (SIN:BN4), the world's biggest builder of oil rigs by output, said that its fourth-quarter net profit rose 30% on year, but warned that the group will find 2010 "challenging".

China Construction Bank (SHA:601939) (HKG:0939) plans to form a US$100 million auto financing unit with Banco Santander (NYSE:STD) to tap into the rapidly growing car market in China, a source said on Tuesday. China Construction Bank and Santander will each hold a 50 percent stake in the joint venture, according to the source.

Industrial & Commercial Bank of China Ltd. (HKG:1398) said it expects to post a 15% rise in 2009 net profit, the slowest earnings growth in the past seven years, but didn't give a reason for the profit increase and didn't provide any exact figures for 2009's earnings.


Related Companies

Volkswagen AG
       

Sumitomo Metal Industries Limited
       

Sumitomo Corporation
      

PSA Peugeot Citroen S.A.
      

Mitsubishi Motors Corporation
      

Kyushu Electric Power Company
      

Keppel Corporation Limited
      

Industrial And Commercial Bank Of China
      

Hyundai Motor Company Limited
      

Gazprom
        

China Construction Bank Corporation
      

Chevron Corporation
      

Banco Santander, S.A.