Asian Markets Overview of January 29

Wall Street slumped overnight led by technology stocks hit by Qualcomm and Motolora's poor revenues and outlook. Greece's fiscal health also dampened investors sentiment.

Most Asian stock markets rebounded Thursday after the U.S. Federal Reserve's pledge to keep interest rates near zero for "an extended period". But analysts expect this would be a temporary rebound. Yesterday, Japan's Nikkei rose 1.6 per cent, boosted by the upbeat earnings reports. Hong Kong's Hang Seng Index added 1.6%, South Korea's Kospi climbed 1.0 per cent and Taiwan's Taiex climbed 1.8 per cent.

Company News

India's Tata Steel Ltd. (BOM:500470) Thursday said it has formed a joint venture with Japan's Nippon Steel Corp. (TYO:5401) to make auto-grade steel in the eastern Indian town of Jamshedpur in 2013. The two companies will jointly set up a 600,000 ton per year facility at Tata Steel's existing steel plant in Jamshedpur. Tata Steel will hold 51% in the joint venture, while the rest will be held by Nippon Steel.

JFE Steel Corp.(TYO:5411) and Marubeni-Itochu Steel Inc. have jointly won a pipeline contract in Australia, making them the only providers of 315 kilometer undersea pipes for the Gorgon Natural Gas Project led by Chevron Corp. (NYSE:CVX). The value of the contract was not disclosed.

South Korea's Hyundai Motor Co. (SEO:005380) posted a better-than-expected net profit in the fourth quarter due to strong domestic demand for new models and tax incentives for new car purchases. Net profit for the three months ended Dec. 31 significantly rose to 945.5 billion won from 243.5 billion won a year earlier. The automaker is looking to increase its share of the global automobile market to 5.4% this year.

CDL Hospitality Trusts (SIN:J85) said that its entity, CDL Hospitality Real Estate Investment Trust, has entered into an agreement to acquire five hotel properties in Australia for A$175 million. The acquisition will be fully funded via debt through a combination of debt in Australian dollars and debt in Singapore dollars.

China Life Insurance Co. (NYSE:LFC) (SHA:601628) (HKG:2628), said it expects net profit to increase more than 50% last year, as investment returns improved following a rebound in the capital market.
Wal-Mart Stores Inc. (NYSE:WMT) has signed a sourcing deal with giant merchandise provider Li & Fung Ltd. (HKG:0494) while Wal-Mart's overall global sourcing strategy will be to continue increasing direct sourcing of its own brands. U.S. retailer could buy US$2 billion worth of goods through the Hong Kong firm in the deal's first year.


Related Companies

Wal-Mart Stores, Inc.
      

Tata Steel Limited
            

Nippon Steel Corporation
          

Li & Fung Limited
      

JFE Holdings
          

Hyundai Motor Company Limited
      

China Life Insurance Company Limited
      

Chevron Corporation
      

CDL Hospitality Trusts