Shares in Central Japan Railway Co. ( TYO:9022) surged on Tuesday, buoyed by the news that Japan Airlines Corp. ( TYO:9205) appears bound for bankruptcy and may delist.
Sydney, Jan 13, 2010 AEST (ABN Newswire) - Overnight US shares was lower on the disappointing Alcoa fourth-quarter report and profit warning from Chevron and Electronic Arts. Financial sector also fell as investors feared that a potential government levy might hurt bank profits.
Asian markets ended mixed Tuesday. China's Shanghai Composite gained for a third successive session, Hong Kong's Hang Seng Index fell 0.4% and Taiwan's Taiex slipped 0.2%. Japan's Nikkei stock average climbed to a 15-month closing high on Tuesday after China reported record imports of some commodities and stronger-than-expected exports.
The commodities currencies such as Australian dollar were lower after China unexpectedly raised bank reserve requirements. The US dollar fell sharply against the yen but rose against high-yielding currencies on Wednesday.
Company News
STX Pan Ocean Co. (
SEO:028670), South Korea's No. 1 bulk carrier by sales, said Tuesday it plans US$203 million this year on six vessels despite uncertainties still lingering in the market. The company said it made the investment decision as bulk-carrying demand and breakup of old vessels are on the rise.
LG Group, parent of LG Electronics (SEO:066570) and LG Chem (SEO:051910), said yesterday that it would invest 15 trillion won in facilities and research and development, the largest ever annual investment in the conglomerate's history. The investment will be 28 percent up from 11.7 trillion won last year. Out of the total investment money, 11.3 trillion won will go into businesses including flat panels, solar cells and telecommunication networks and 3.7 trillion won into R&D. LG Group said it plans to achieve record sales of 135 trillion won in 2010, up from 125 trillion won last year.
Shares in Central Japan Railway Co. (TYO:9022) surged on Tuesday, buoyed by the news that Japan Airlines Corp. (TYO:9205) appears bound for bankruptcy and may delist. Analysts expect that passengers who travel between Tokyo and Osaka may chose trains over planes while the ailing carrier may cut domestic routes in its reconstruction plan.
Suntech Power Holdings Co Ltd's (NYSE:STP) solar panel is sold out through at least the second quarter of 2010 while demand for solar power products has rebounded after a difficult 2009. The Chinese company was basically in a sold-out situation in Q4 and in a sold-out situation at least through Q2, a company executive said on Tuesday. With stable prices for panels and efforts to cut other costs, the Suntech has maintained gross margins for its panels at about 20 percent.
Poly Real Estate Group Co. (SHA:600048), the second-largest China-listed developer by assets, said Wednesday its property sales for 2009 surged 141.38 per cent from a year earlier. Sales for the 12 months ended Dec. 31 was 43.38 billion yuan.
Contact
Michelle Liang
Asia Business News Asia Bureau
TEL: +61-2-9247-4344
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