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Gillard Becomes Australia's New PM

This is a transcript of top stories presented by China's CCTV Business Channel as produced by CNBC Asia Pacific.

Hello and a very warm welcome to our China viewers on CCTV Business Channel.

I am Saijal Patel and you are watching "Asia Market Daily" - co-produced by CCTV and CNBC, first in business worldwide.

On to what's moving in markets today...

The big story was from Australia where Julia Gillard became the country's new prime minister after Kevin Rudd stepped down. Investors are hoping that Gillard will soften the government's stance on a controversial mining tax.

Mining plays such as BHP Billiton, Rio Tinto and MacArthur Coal rallied but ended off their earlier highs.

The Australian market actually finished lower after jumping in the morning on reaction to the political development.

CNBC's Matthew Taylor has the full story from Sydney:

A dramatic 24 hours in Australian politics with the Australian Prime Minister Kevin Rudd ousted in favor of his deputy Julia Gillard - who now becomes Australia's first female prime minister.

The situation began to develop last night when Ms Gillard proposed a leadership challenge in an attempt to arrest a slide for the Labor party's fortunes in the opinion polls. We were expecting a ballot to take place this morning - but instead Kevin Rudd stood down, with Julia Gillard elected as Prime Minister unopposed.

In her first move as the new Prime Minister she vowed to address concerns over the resources super profits tax - with open discussions with the miners.

(SOT) Julia Gillard, Prime Minister of Australia:

"Today I am throwing open the government door to mining industry and I ask in return the mining industry throws open its mind and today I will ensure the mining ads paid for by government are cancelled and in return I ask mining industry cease their ad campaign as a sign of good faith and mutual respect."

Already some of the mining giants have pulled their ad campaigns.

It was an emotional Kevin Rudd that fronted the media in Canberra - dropped just two and a half years into his term as Prime Minister.

(SOT) Kevin Rudd, Former PM of Australia:

"I was elected by the Australian people and gave my absolute best to do that.... I'm proud of the achievements to make this country fairer. Proud of the fact that we kept Australia out of the global economic recession."

The hope is Julia Gillard can now lead the Labor party to an election victory when one is called later this year.

(SOT) Julia Gillard, PM of Australia:

"I also acknowledge I have not been elected PM by Australian people. In coming months, I will call an election so that Australian people ...and choose their
prime minister."

So a truly historic day on the political front in Australia. Back to you, Saijal.

Turning to events overnight in the United States.

The Federal Reserve kept interest rates near zero, after a two-day meeting. The decision was in line with expectations.

Fed officials reiterated that short-term interest rates could remain at a record low until next year to support growth.

They also noted how financial conditions had become less supportive of economic growth following the European debt crisis.

Analysts say the Fed has changed the wording on its statement slightly on the prospects for growth and acknowledged the effect of lower prices and tame inflation.

Olivier Disbars, Director of VEX Strategy at Credit Sues shares his thoughts.

(SOT) Olivier Disbars, Credit Sues Director, VEX Strategy:

"I think the FMC stand was more divot than the market expected. We did think that they would keep the rates remaining on hold language unchanged, but there were two divot innovations, one with regards to inflation, one with regards to financial conditions hurting economic growth. I don't think it's totally surprising when you look at the economic data from the US in the recent weeks and when you take into account what's been happening in the financial markets in Europe, I think the message from the Fed is a very clear one rates are gonna remain on hold for the remaining of the year, we don't think they'll be hiking before early 2011 at the earliest."

But Bill Gross the Founder & Co-CIO of PICO is expecting the Fed Reserve to keep rates flat for a much longer time.

(SOT) Bill Gross, Founder & Co-CIO, PICO:

What you need to do at the next meeting, Mr. Banana is to extend your extended period timeline to several years at least. That's what happened during World War II .. the benefit today is that risk...so I say come on Ben, be bold, keep fed funds low for an extended period of time."

And now back to Asia and a full picture of how markets outside of Australia did today.

Stocks were mostly higher.

Japan's Nikkei 225 was flat in thin trade. was one of the biggest
gainer as Apple's phone 4 made its global debut, with fans pouring into
shops. is the exclusive phone operator in Japan.

We'll have more on that in a bit.

Over in South Korea, shares in banks, shipping and builders rose, lifting the index. But on the downside were retailers and consumer goods makers.

And looking at Agricultural Bank of China, it is reportedly planning to raise up to $11.4 billion in the Hong Kong leg of its dual PI in Shanghai and Hong Kong. However, its total offering which includes the Shanghai listing may fall short of the record set by Industrial and Commercial bank of China.

And, as I mentioned earlier.... the phone 4 has arrived in Japan. You're seeing pictures from Tokyo of fans queuing up for the coveted phone.

In Japan, the price of an phone starts at $512 for the basic model but customers can get one for free in real terms if they sign up for certain services.

The phone 4 boasts a higher quality screen and longer battery life than the previous model.

The phone has been a huge success since it made its debut in 2007, boosting Apple's margins and transforming it into one of the world's leading mobile device makers.

The phone 4 also debuts in the United States, France, Germany and the UK on Thursday.

Well, that wraps up today's business highlights.

You have been watching "Asia Market Daily" - co-produced by CCTV and CNBC, first in business worldwide.


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