Asia Market Insight: February 2009

India's government projected the biggest budget deficit in 18 years for this fiscal year as it unveiled a raft of measures to spur a slowing economy. ... http://link.gs/bw2z

Wesfarmers Posts 46% Jump in Profit on Coles Acquisition

Wesfarmers reported a 46% jump in net profit for its fiscal first half, the first full period to reflect results from the Coles supermarket group and other retail chains purchased in 2007. ... http://link.gs/EZQP

Indonesia's GDP Growth Slows on Global Downturn

Indonesia's economy slowed in the fourth quarter of 2008 as the global downturn started to bite, official figures showed. ... http://link.gs/CU3Z

Foreign Investment in China Fell in January

China said direct foreign investment in the country fell 33% in January, the fourth straight month of decline. ... http://link.gs/Baqz

Sanyuan Shares Jump on Plans to Bid for Sanlu

Chinese dairy firm Beijing Sanyuan Foods jumped 10% on expectations it will buy the assets of Sanlu, the company at the center of last year's tainted-milk scandal. ... http://link.gs/rb7C

Singapore Airlines to Cut Capacity Further

Singapore Airlines said it will further reduce its capacity and is in talks with its staff and unions on various cost-cutting measures. ... http://link.gs/qqJw

Pakistan to Seek More Funds From IMF

Pakistan will seek an additional $4.5 billion loan from the IMF to help accelerate economic growth and shore-up foreign exchange reserves. ... http://link.gs/H0qB

OZ Minerals Favors Takeover by Minmetals

OZ Minerals Ltd. became the latest Australian mining company to turn to China to ease its debt load, recommending a $1.71 billion takeover bid from Minmetals. ... http://link.gs/IXwk

Islamic Law to Be Imposed in Parts of Northwest Pakistan

Pakistan agreed to implement Islamic law across a large swath of northwest Pakistan in a concession aimed at pacifying a spreading Taliban insurgency. ... http://link.gs/oaHL

Holbrooke Meets Indian Officials

U.S. special envoy Holbrooke met with Indian officials for talks expected to focus on Afghanistan and simmering tensions between India and Pakistan. ... http://link.gs/slrk

Holbrooke Meets Indian Officials

U.S. special envoy Holbrooke met with Indian officials for talks expected to focus on Afghanistan and simmering tensions between India and Pakistan. ... http://link.gs/slrk

The License Raj Is Dead. Long Live the License Raj.

Setting up business in Delhi can test the resolve of even the most dedicated entrepreneur, says Sandeep Kohli, chairman of The Great Indian Restaurant Co. ... http://link.gs/5xqs

Senior Satyam Executive Resigns

India's Satyam said Subbu D. Subramanian, head of its manufacturing and automotive services division, has resigned due to personal reasons. ... http://link.gs/sRFz

Satyam to Weigh Offers

Satyam's new Chief Executive A.S. Murty said the fraud-riddled Indian outsourcer has begun considering offers from suitors. ... http://link.gs/iWYI

North Korea Hints at Preparing Rocket Launch

North Korea suggested it is preparing a rocket launch, claiming its for ... http://link.gs/26zs

Hong Kong Air Cargo Nose-Dives

Hong Kong's international airport said it recorded a 29% drop in cargo traffic in January compared with a year earlier. ... http://link.gs/TRwb

Nippon Paper Agrees to Buy PaperlinX's Australian Unit

Nippon Paper Group, Japan's second-largest paper maker by sales, agreed to buy PaperlinX's Australian Paper unit for around US$460 million. ... http://link.gs/E69w

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In Asia, Clinton to Seek Alliance on Financial Crisis

Hillary Clinton, en route to Japan, said she will seek to develop a strong coordinated response to the global financial crisis between the U.S. and Asia's economic powers. ... http://link.gs/uDCp

Sunday, February 15, 2009

Japan Offers $100 Billion in Emergency Aid to IMF

Japan agreed to offer the IMF up to $100 billion in emergency loans to support its mission to aid developing nations hit hard by the global economic crisis. ... http://link.gs/1Hye

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Japan, New Zealand Markets Drop

Asian markets were mostly lower, with sentiment in Japan hurt by poor GDP data and Fisher & Paykel Appliances skidding 38% in New Zealand after issuing a profit warning. ... http://link.gs/nZbI

Japan 4Q GDP Posts Biggest Drop in Nearly 35 Years

Japan's economy shrank at its sharpest pace in over three decades in the final quarter of 2008, as the financial crisis and languishing overseas demand dealt a blow to the export-driven economy. ... http://link.gs/BOq2

Taliban Plans Cease-Fire in Pakistan

A Taliban spokesman says the militants will adhere to a 10-day cease-fire in Pakistan's Swat Valley during peace. ... http://link.gs/55aZ

Afghanistan to Take Part in U.S. Strategic Review

President Karzai said the Afghan government will take part in a U.S. strategic review of the war in Afghanistan, in a sign of increased cooperation at a time of strained relations. ... http://link.gs/iik4

Train Derails in India, Killing at Least 15

A train derailed in eastern India, killing at least 15 people and injuring more than 160. ... http://link.gs/NKD5

G-7 Softens Criticism of China's Currency Policy

The U.S. and its major allies softened their criticism of China's controversial currency policy, in a shift that reflects the West' eagerness for Beijing's help in resolving the global financial and economic crisis. ... http://link.gs/WejF

Saturday, February 14, 2009

Suspect Charged in Deadly Australia Fires

Authorities charged a man with lighting one of the wildfires that killed more than 180 people in Australia, and whisked him into protective custody. ... http://link.gs/CDUs

Japan's Insurers Suffer Amid Market Slump

Japan's top five nonlife insurers posted dismal results in the April-December period because of securities losses totaling about $4.4 billion. ... http://link.gs/x9e5

Clinton Offers North Korea a Peace Map

Clinton pledged aid to North Korea if it abandons its nuclear program. She leaves Sunday for a weeklong trip to Asia. ... http://link.gs/kOAN

Friday, February 13, 2009

Big Holder Questions Rio Deal

Rio Tinto's largest shareholder issued a statement that amounted to a thinly veiled threat to vote against the miner's deal with Chinalco. ... http://link.gs/mxeM

Geithner to Call for 'Exceptional' Measures at G7 Meeting

At the Rome G-7 meeting, Geithner plans to encourage international finance ministers to take bold, extraordinary steps to ease the pain in global financial markets. ... http://link.gs/CG3Q

Glaxo Plans to Cut Drug Prices in Poorest Countries

GlaxoSmithKline plans to cut drug prices in the world's poorest countries and invest part of its profit from those markets into building health facilities. ... http://link.gs/Y0Ie

Renault Delays Factories, Rethinks Models

Renault posted a wider-than-expected loss in the second half of 2008, as global auto sales plummeted and the credit crunch made it harder for consumers to get car loans. ... http://link.gs/l2ns

Patni Seeks Acquisitions in Europe

Patni Computer Systems said it is looking to buy companies in Europe to expand its service offerings and geographical presence ... http://link.gs/J7xH

Gilead Looks for Tie-Ups in India

Gilead Sciences' senior vice president said his company is looking for contract manufacturing and research partnerships in India. ... http://link.gs/eKMN

Indians Flock to Sell Old Gold

As spot gold prices in the local market surge to record highs, Indians are flocking to jewelry shops to sell old jewelry in the middle of the busy wedding season, when purchases usually pick up. ... http://link.gs/yXfh

Indian Passenger Rail Fares Cut as Polls Loom

In a nod to the global downturn and looming general elections, India's Railway Minister presented a please-all interim rail budget, holding freight rates and cutting passenger fares across the board by 2%. ... http://link.gs/tJBG

Ashok Leyland Cuts Capex Plan

Ashok Leyland cut its capital expenditure plan for the next three years by up to $266.8 million amid lower demand for trucks and buses in India. ... http://link.gs/x8vf

Australia's Senate Approves Stimulus Package

Australia's Senate approved a $27 billion fiscal stimulus package after the government secured the support of the one remaining swing voter. ... http://link.gs/DIxc

Pioneer Shares Plunge 20% on Restructuring

Pioneer lost nearly a fifth of its stock market value as plans to abandon its unprofitable TV operations triggered mass-selling by investors. ... http://link.gs/RmZA

India to Ensure Satyam Client Satisfaction

The Indian government will seek to ensure that Satyam Computer Services' clients are satisfied with the company's work. ... http://link.gs/FCeG

Geithner to Take Case to G-7

Treasury Secretary Geithner will urge his Group of Seven counterparts this week to take ... http://link.gs/EeFw

Thursday, February 12, 2009

Facing a Loss, Toyota Offers Job Buyouts, Ends Bonuses

Toyota plans to cut the work week at some plants in North America by 10% and is offering optional buyouts to its workers. ... http://link.gs/jU7F

Australian Resource Stocks Slip; Japan Gains

Japan's Nikkei gained 1.2% Friday as investors judged recent losses were overdone, while Australian resource stocks slipped as base metal prices fell. ... http://link.gs/PFYh

Patni Posts 22% Fall in Net Profit

Patni Computer, one of India's top 10 software exporters by sales, warned that earnings and revenue are likely to fall sequentially in the current quarter. ... http://link.gs/hdZ0

Coca-Cola Amatil Annual Net Profit Up 24%

Coca-Cola Amatil reported a 24% increase in annual net earnings due to growth in several lines of the beverage company's business. ... http://link.gs/gbIa

India's Industrial Output Shrinks 2%

India's industrial output recorded its worst performance in 16 years, contracting 2% from a year earlier in December. ... http://link.gs/pRon

Credit Crunch Strikes Indian Grocery Chain

One of India's largest grocery store chains, Subhiksha, has shuttered its 1, 600 stores and laid off workers, a victim of the credit crisis. ... http://link.gs/O69Y

AIG to Sell Tokyo Headquarters

AIG is about to put on the market its Japanese headquarters overlooking the Imperial Palace. The building could fetch over $1 billion. ... http://link.gs/ieKd

Koizumi Attacks Aso

Japan's former leader Koizumi blasted incumbent Aso for rejecting reforms at the core of his agenda. ... http://link.gs/4cv9

Australian Stimulus Hits a Roadblock

Australia's Senate voted down a $27 billion fiscal stimulus package proposed by the government, in a move that threatens to hamper efforts to avert a recession. ... http://link.gs/yBJz

Morgan Stanley Real-Estate Executive Investigated

The Morgan Stanley employee under investigation for possible violations of the Foreign Corrupt Practices Act is the former head of the investment bank's real-estate investing operations in China. ... http://link.gs/B6sj

Clients Seek Price Cuts From Indian Service Providers

India's top information technology and software services industry said the global economic crisis has resulted in clients seeking price cuts of 5%-10% from Indian outsourcing-services providers. ... http://link.gs/MSbC

Patni Posts 22% Fall in Net Profit

Patni Computer, one of India's top 10 software exporters by sales, warned that earnings and revenue are likely to fall sequentially in the current quarter. ... http://link.gs/2sSd

India Policy Steps Priced in Worsening Global Woes

The Indian government's recent policy measures have factored in a worsening global economic situation. ... http://link.gs/Knu5

Perot Systems Looks to Buy Firms in India, Mideast

Perot Systems is looking to acquire information-technology companies which provide services to the health-care, financial-services and consulting industries. ... http://link.gs/wbqE

Tata Communications to Invest $430 Million in Asia

India's Tata Communications will invest $430 million in Asia to build an Internet data center and a cable system. ... http://link.gs/5Hbo

AgustaWestland, Tata in Helicopter Manufacturing Deal

AgustaWestland, a unit of Italy's Finmeccanica, has agreed to assemble its AW119 helicopters in India jointly with Tata Sons. ... http://link.gs/JNxJ

Reliance Power to Raise $9.22 Billion

India's Reliance Power plans to raise as much as $9.22 billion to build three power projects by 2016. ... http://link.gs/rjco

India's Industrial Output Shrinks 2%

India's industrial output recorded its worst performance in 16 years, contracting 2% from a year earlier in December. ... http://link.gs/2Rpb

Bell Helicopter January Orders Fall Sharply

U.S.-based Bell Helicopter said it has received only three orders in January, down sharply from 40 in the same month a year earlier, because of the global credit crunch. ... http://link.gs/5iZr

Diageo Says Premature to Suggest Indian Deal Imminent

Diageo isn't yet ready to sign a deal with United Spirits in India. ... http://link.gs/OqBk

Seeing Mumbai From Pakistan

A report gaining surprising credence in Islamabad offers a glimpse of how many Pakistanis view the terrorist attacks, says WSJ's Matthew Rosenberg ... http://link.gs/Kwqc

Mumbai Attacks Partly Planned in Pakistan

Pakistan acknowledged for the first time that the Mumbai terrorist attacks were plotted in part on its soil and said it had arrested key suspects. ... http://link.gs/LiQ6

India Nears Decision on Easing Foreign Holdings in Airlines

The Indian government may decide within days whether to ease rules on foreign investment in the country's aviation sector, with Indian carriers seeking more leeway to raise capital in the economic downturn. ... http://link.gs/6hoq

Woori Swings to Net Loss on Provisioning

Two of South Korea's four big national banks, Woori Finance and Hana Financial, were hit by heavy loan-loss provisioning. ... http://link.gs/Atbg

Nissan Aims for 4.6% China Sales Rise in 2009

Nissan, hoping increased Chinese sales can offset falls elsewhere, said it aims to sell 570, 000 vehicles in China this year, a 4.6% increase from 2008. ... http://link.gs/C7ro

Hong Kong to Extend Trading Blackout Period

Hong Kong officials struck a compromise on new limits to trading by insiders, after tough proposed new restrictions prompted a strong outcry from the city's business community. ... http://link.gs/o0uT

China Says Its Banks Won't Bid for AIG Unit

The Chinese government has decided that its banks, including Bank of China, won't bid for a stake in AIG's Asian life-insurance unit. ... http://link.gs/ulwT

Mumbai Attacks Partly Planned in Pakistan

Pakistan acknowledged for the first time that the Mumbai terrorist attacks were plotted in part on its soil and said it had arrested key suspects. ... http://link.gs/Utr5

India Nears Decision on Easing Foreign Holdings in Airlines

Rolls-Royce Plans to Bid for India Jaguar Engine

Rolls-Royce Group plans to bid for an Indian government program to replace the engines of its 125-strong fleet of Jaguar combat jets. ... http://link.gs/JQtd

India Breaks Dry Spell, Too

A small training and technology company broke India's four-month drought of IPOs and saw its share allotment get oversubscribed. ... http://link.gs/4GL1

Probe Follows Firing

Morgan Stanley said it recently uncovered actions initiated by an employee based in China that appear to have violated the Foreign Corrupt Practices Act. ... http://link.gs/AfpB

12 Detained in Beijing Hotel Fire

Beijing police detained 12 people over a massive hotel fire at a government television complex sparked by an unlicensed fireworks display. ... http://link.gs/5J5M

Australian Senate Votes Against Stimulus Plan

Australia's upper house voted down a $27.22 billion fiscal stimulus package proposed by the center-left federal Labor government. ... http://link.gs/9KEn

Police Detain Two About Australian Wildfires

Police detained two suspects after they were reported acting suspiciously in an area burned out by last weekend's fires. ... http://link.gs/bzXA

Indonesia Hit by Powerful Earthquake

A powerful earthquake struck off eastern Indonesia early Thursday, briefly triggering fears of a tsunami. ... http://link.gs/2W9b

South Korea Cuts Main Interest Rate

South Korea's central bank cut its main interest rate by a half-percentage point to 2%, its sixth cut in four months. ... http://link.gs/ZUs5

Rio Tinto Gets Infusion From China

Rio Tinto will sell convertible bonds and minority stakes in a collection of mining assets to Chinalco in a $19.5 billion deal. ... http://link.gs/98oP

China Lending Surged in January

Chinese government data showed that new yuan loans in January soared to a record amount, signaling that Beijing's stimulus measures are freeing up credit. ... http://link.gs/OKTb

Pioneer Posts Loss, Cuts 10, 000 Jobs

Pioneer plans to cut 10, 000 jobs globally as it swung into the red for the fiscal third quarter and expects a deeper net loss for the full year. ... http://link.gs/I2x6

Wednesday, February 11, 2009

Australia Mining Shares Rise; Tokyo Slips After Holiday

Asian share markets were mixed Thursday with the Nikkei down 1.8% as a stronger yen hurt exporters. Mining shares gained in Australia as gold rallied. ... http://link.gs/fPmn

Chip Firms Seek Funding

Two groups led by Japan's Elpida and U.S.-based Micron Technology are accelerating their efforts to consolidate with Taiwanese peers in order to receive much-needed funds from the Taiwan government. ... http://link.gs/05I1

SFC Muddles Debate on Rule in Hong Kong

The uncertain stance of Hong Kong's top securities regulator has complicated debate on a rule that would restrict trading by insiders. ... http://link.gs/qUd3

Headstrong Says Some Satyam Clients Have Approached Company

Headstrong Corp. said some clients of Satyam have sought to transfer the deals they had given to Satyam to the U.S.-based software services provider. ... http://link.gs/OAGg

Embraer Expects to Sell More Military Planes to India

Brazilian aircraft maker Embraer said it expects to sell more military aircraft to India, capitalizing on the country's plan to modernize its defense forces. ... http://link.gs/IZx6

India to Inject Capital Into Three Banks

India's federal cabinet approved a capital infusion into three state-run banks to increase their capital adequacy ratio. ... http://link.gs/CRSK

Satyam Says Most Clients Want to Continue Ties

Satyam said most of its clients will continue working with the Indian software exporter despite recent revelations of accounting fraud. ... http://link.gs/P4gy

Telenor's Unitech Wireless Signs Tower Sharing Agreement

Norwegian telecom operator Telenor ASA has come closer to its aim of taking a 60% stake in Unitech Wireless, as the Indian mobile operator has now signed a tower sharing agreement. ... http://link.gs/ZaRf

India's Central Bank Could Ease Monetary Policy to Support Borrowing, Analysts Say

Analysts say India's central bank will have to buy back federal government bonds heavily and even use monetary tools such as lowering the cash reserve ratio or interest rates to support the federal government's extra borrowing program. ... http://link.gs/hiw8