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Asian Stocks Drift Up But Outlook Uncertain 

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

Hello to our viewers all over China.

You're watching “Asia Market Daily”, co-produced by CCTV Business Channel and CNBC, first in business worldwide.

I am Saijal Patel with the top stories across Asia today.

Asian stocks are mixed today, but most markets shrugged off the Friday losses on Wall Street and the poor U.S. jobs data.

In Japan the Nikkei 225 closed 7-tenths of a percent higher.

Shares of consumer-lenders surged on a report that the Osaka Prefecture is finalizing a proposal to ask the central-government to relax money-lending laws.

This would allow consumers-lenders to apply higher interest-rates on some cases.

Takefuji shares rose 18-percent, and Aiful was higher by 24-percent.

In the auto space, Japan's number 3 -Nissan Motors overtook its peers to rise some 2 percent today.

It says its new Juke model has been a hit with almost 11-thousand new orders, since it launched the compact SUV in Japan. That's eight times its monthly target.

(SOT)Chris Richter, Auto Analyst, CLSA:

“Right now, I’ve been a fan of Nissan motor for a while. the reason is one: they're doing much better than their peers in china, they've got a superb electric vehicle program, and I think they're going to beat market expectations on earnings this year and as a consequence of that, it's cheap.”

Rival Toyota however continuing to suffer from recall setbacks.

Its Lexus division says it will recall some 130-thousand units in the US to fix potential engine flaws. Analysts though say the latest round of recalls have no major impact. Rather, traders are concerned over future export sales given the uncertainty in US and Europe.

Meantime in South Korea, the KOSPI edged-up 2-tenths of a percent.

STX Offshore and Shipbuilding shares soared 9-percent on reports it's planning a Singapore IPO for its European unit.

In Australia the S&P closed lower by 4-tenths of a percent.

We're seeing a flurry of M&A activity down-under.

Shares of C-S-R closed 4-percent higher, after the conglomerate announced it had agreed to sell its sugar-arm, Sucrogen, to Singapore's Wilmar International for about 1.5-billion U.S. dollars.

Meantime, Centennial Coal, Australia's biggest independent coal-producer, jumped 32-percent after it agreed to a 2-billion dollar takeover offer from Thailand's Banpu Public.

But in China, economic-growth concerns continued to weigh on the share-market.

The Shanghai Composite closed down 8-tenths of a percent to a new 15-month low.

From Asia to Europe, monetary policy is in focus this week.

Over the weekend, European Central Bank Chief Jean-Claude Trichet spoke up against fears of a double dip recession - on the back of a slew of sluggish data out from the US.

Despite his comments, analysts remain cautious since policymakers will have little leeway or options, should there be further softening in the economy.

(SOT) John Noonan, Senior FX Analyst, Thomson Reuters:

“There are 2 factors supporting the Euro right now...one is positioning, markets extremely short on Euro, and also European banks having trouble getting money from lending markets, what we saw was not as dire ..despite 442 billion that had to rolled over from the maturing special ECB facility...not sounding the all-clear siren just yet, but not as bad as what people thought...you have US data which is very poor, so the dollar has lost its safe haven as funding currency in this times of uncertainty...it's a dollar weakness story and a calming in Europe that can be best described.”

Those comments coming out, ahead of the ECB and Bank of England's meetings later this week. Market consensus is for rates to remain unchanged.

Trichet says structural reforms in the form of austerity drives, deficit cuts and stress tests for banks will be critical to restoring confidence.

Analysts say there could be some upside for the Euro, if optimism grows.

(SOT) Jim Vrondas, Manager of Corporate Business, OzForex:

“Last week when market is nervous about debt expiry in Europe, the euro story is quite hard once it got through that 3-month refinancing period, so we have seen a move back to 124-125 in the euro/usd which is a pretty strong resistance level. there is a chance that this rally will continue a bit longer, particularly if the ECB this week comes out reinforcing the strength of the European banks and sovereign debt issues — that could see further upside on the euro.”

Over in Asia, policymakers are also expected to pause on rates.

Down under, the Reserve Bank of Australia is likely to sit on the sidelines when they meet tomorrow.

With six rate hikes since last October, policymakers are expected to track Q2 inflation data that's due later this month and China's pace of growth before making any moves.

(SOT) John Noonan, Senior FX Analyst, Thomson Reuters:

“The market will be anxious to see what RBA has to say about China, the bank has been very confident about China's growth in terms of Australia's terms of trade, so I think their comments on the small slowdown we're seeing in China, how it will play out.”

Citic securities' chief economist says inflation pressures and housing prices should decline in the second half. However, domestic consumption and wages need to keep up in order for China to make a complete economic transformation.

(SOT) Hu Yifan, Chief Economist, Citic Securities:

“For the past 10 years, the GDP growth around 9 to 10 % in china, however the wage growth is much slower, especially the farmer workers and the manufacturing workers. that means china's consumption has been insufficient.”

We'll keep you updated on south Korea and Malaysia’s rate decisions later this week.

And that wraps up today's business highlights.

I'm Saijal Patel.

You're watching a co-production by CCTV and CNBC - first in business worldwide.

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