Asian Markets Overview of March 5

Sydney, Mar 5, 2009 AEST (ABN Newswire) - Asian share markets were bolstered on hopes for China's further stimulus measures, which are speculated to include market-supportive moves. Shanghai Composite Index surged 6.1% while Hong Kong's Hang Seng Index rose 2.5%. South Korea's Kospi was up 3.3%. Japanese and Singaporean markets also shrugged off the bad lead from Wall Street, gaining 0.9% and 1% respectively.

Today Seoul and Hong Kong shares opened higher after the solid gains on Wall Street. Japan's Nikkei average extended the rising streak of yesterday and opened firmer on Thursday.

Asia Economy Watch

The Reserve Bank of India Wednesday cut its benchmark lending rate by half a percentage point to 5.0%. It also trimmed the borrowing rate by an equal amount to 3.5% to discourage banks from parking their surplus funds with the RBI.

China will expand public spending 22.1% this year, but will keep the budget deficit within 3% of gross domestic product, Finance Minister Xie Xuren said Thursday.

Singapore's Minister Mentor Lee Kuan Yew said yesterday if the second quarter shows a further drop of another 30, 40 per cent, Singapore's economic growth will go down to -10 per cent this year.

Company News

China Minsheng Banking Corp (SHA:600016) said it is in talks to sell shares to strategic foreign investors. The bank is negotiating with companies from the United States and Europe.

Hong Kong Tycoon Joseph Lau Luen-hung yesterday revealed he and "friends" had bought a US$200 million stake in telecommunications company PCCW (HKG:0008). But the identities of his "friends" were not disclosed.

Panasonic Corp. (TYO:6752) said that it will issue 400 billion yen of straight bonds this coming Tuesday, for the largest-ever single offering of corporate debt to institutional investors.

Japanese brokerage firm Nomura Holdings Inc. (TYO:8604) said it will conduct a public stock offering in a bid to raise up to 312.8 billion yen. The company will offer 716.4 million new shares for 417 yen each.

Yakult Honsha Co. (TYO:2267) is increasing production capacity for its lactic acid drink in China by 40%. The company plans to invest 4 billion yen to expand plants in both Guangzhou and Shanghai by early April.

Australia's Woodside Petroleum Ltd. (ASX:WPL) said the company has invited Korea Gas (SEO:036460) to invest in some of its gas permits offshore Western Australia state. Woodside has signed a memorandum of understanding with Kogas under which the parties agreed to explore sharing business opportunities.

Contact

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