Asian Markets Overview of March 10

Sydney, Mar 10, 2009 AEST (ABN Newswire) - Most Asian markets declined on Monday. Japan's Nikkei average tumbled 1.2% to a 26-year low, while Hong Kong's Hang Seng Index slumped 4.8%, the sharpest fall in the major indexes in Asia. China's Shanghai Composite was down 3.4%. But South Korea's Kospi ended 1.6% higher lifted by technology and shipbuilding sectors.

Today Seoul and Tokyo shares opened lower after losses on Wall Street, but Hong Kong market was up more than 2% in early trading.

Asia Economy Watch

China's National Bureau of Statistics has released the latest figure of consumer price index, which fell for the first time in more than six years in February, dropping 1.6% from a year earlier. The producer price index in February fell 4.5% from a year earlier. Falls in both China's consumer price index and producer price index in February don't signify deflation, the National Bureau of Statistics said.

The outlook for Chinese exports will remain grim in the coming months, Commerce Minister Chen Deming said at a news conference on Tuesday.

Society of Indian Automobile Manufacturers said sales of passenger cars in India jumped 22 percent in February, while sales of commercial vehicles plunged by more than half, prompting analysts to warn that it's too early to say India's auto sector has recovered.

Company News

China Eastern Airlines (SHA:600115) said that it didn't receive any additional capital from the central government after the previous 7 billion yuan capital injection. The statement was made in response to recent media report that the company got an additional 2 billion yuan from the government.

South Korea's Doosan Construction & Engineering Co Ltd (SEO:011160) said on Tuesday that it would scrap 11 percent of its outstanding common shares owned by itself to improve shareholder value.

Kyocera Corp. (TYO:6971) said that it will quadruple production capacity for solar cell modules at subsidiary Kyocera (Tianjin) Solar Energy Co. to 240,000kw a year in 2011 or later. Kyocera will soon start the construction of an estimated 3-4 billion yen new building near its existing plant at the Tianjin unit.

Japan's largest nonlife insurer Tokio Marine Holdings (TYO:8766) says it expects about a Y12 billion profit from sale of its 50% stake in Brazilian pension and insurance company Real Tokio Marine Vida e Previdencia to Banco Santander SA (NYSE:STD).

LG Display (SEO:034220) has begun mass production at a plant in South Korea to meet the demand of rapidly increasing Chinese market, thanks to the Chinese government's "home appliances to the countryside" policy.

Contact

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