Sydney, Feb 9, 2009 AEST (ABN Newswire) - Asian shares are set to gain on Monday after a rally on Wall Street last Friday. Japan's Nikkei average is also expected to be buoyed by exporters on a weaker yen. Asian shares rallied across the region Friday with shipping stocks leading for another day and miners rising on hopes that demand for commodities might be picking up. The Shanghai Composite Index rallied 4%, delivering its best performance of the week while China-related shares also lifted the market in Hong Kong.
Asia Economy Watch
Governor of China's central bank, Zhou Xiaochuan, says China does not need to rely only on interest rate adjustments as a monetary policy tool. Some economists said China may be less aggressive in cutting rates as new loans surged to a record high last month and the economy could be showing signs of bottoming out.
Korea's financial authorities has announced plans to add speed and efficiency to the ongoing revamping process, which includes establishing a new private equity fund to help ailing companies improve their finances and expand pre-workout programs.
The Japanese government may consider compiling another economic stimulus package after the national parliament passes the fiscal-2009 budget if economic conditions deteriorate further.
Company News
Ping An Insurance (Group) Co. of China Ltd. (SHA:601318)(HKG:2318) will vote against the proposed sales of Fortis (NL) N.V. assets at a Wednesday meeting of shareholders in the Belgian-Dutch group, citing the decisions to sell assets have severely impaired shareholders' interests. Ping An is the largest investor of Fortis holding a 5% take.
Sharp Corp. (TYO:6753) posted a net loss of 65.8 billion yen for the fiscal third quarter and warned it now expects to post its first full-year net loss in 50 years.
Toyota Motor Corp.(TYO:7203)(NYSE:TM) on Friday said it could see an operating loss of 450 billion yen in the fiscal year to March, due to the plunging sales amid global economic downturn. The company further lowered its earnings forecast and said it now expects to incur 350 billion yen net loss for the fiscal year to March 31.
Korea's Kia Motors Corp (SEO:000270) said on Monday its planned share issue worth 28.8 billion won had failed as no investors showed interest in the new stocks.
Bank of Communications Co. (HKG:3328), China's fifth-largest lender by assets, said it plans to issue up to 80 billion yuan in subordinated bonds from 2009 to 2011.
Nomura Holdings Inc.(TYO:8604)(NYSE:NMR) said it may raise as much as 300 billion yen. It was hit by the burden of bigger payroll after acquiring Lehman in the global downturn and posted a record net loss for the fiscal third quarter.
Hong Kong Resources Holdings Co. (HKG:2882) said Henderson Land Development Co. (HKG:0012) Chairman Lee Shau-kee agreed to buy an 8.1% stake in the company for HK$20 million, to help fund its purchase of a local jeweler.
Bhushan Power & Steel (BOM:500055) Saturday made an open offer to buy an additional 26 per cent stake in Orissa Sponge Iron & Steel (BOM:504864) for Rs 300 a share, as part of its decision to acquire a majority stake in the company.
Contact
Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net
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