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Asian Stocks Advance After Wall Street's Rally

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 Christine Tan standing in for Saijal Patel today.

Here are the top stories across Asia.

Financial markets rose Thursday as regional stocks took heart from U.S. bank, State Street's robust profit forecast.

Investors were back in action, scooping up stocks and sending markets into positive territory.

Leading the way up, Japan's benchmark Nikkei 225, which closed 2.8 percent higher

Exporters were the big gainers, Fuji Electronics' shares rose after reporting quarterly profit jump of over 20 percent.

Meantime in South Korea, the KOSPI gained 1.4 percent powered up by chip exporters.

In Australia, positive jobs data also gave the region an additional boost.

The S&P ASX 200 finished 2.4 percent higher.

Bank, mining and energy stocks the gainers in the Australian market.

With today's good showing, are financial markets likely to turnaround from hereon? Andrew Sullivan of MainFirst Securities doesn't think the uptrend will last.

(SOT) Andrew Sullivan, Sales Trader, MainFirst Securities HK:

“People are really looking for signs of whether the US consumers are going to continue spending. I think that people will be watching for the retail sales numbers coming out of the individual stores, which is due shortly. We already had a report from the American Retail Association, saying that they were seeing spending up, but I mean, at the same time, we saw Citigroup downgrading a number of retailers earlier in the week, so that's the real crux of the problem, it's the fact that there is so much conflicting data coming through at the moment. People aren't quite sure which way to go, and hence we're seeing this volatility but on quite low volumes."

We had a slew of economic data published today.

Starting in Australia where employment numbers exceeded expectations.

In the month of June, employers added more workers for the fourth consecutive month as the economy strengthens.

The number of people employed went up by 45,900 from a month ago, 3 times more than what the market expected.

June unemployment data held steady at 5.1 percent.

The good news also gave a boost to the Australian dollar, traders are now confident that the Aussie dollar will stay well above its recent 10 months low for the rest of the year.

Over in Japan, it's a less rosy picture, with machinery orders tumbling, in its largest decline in 2 years.

The fall of 9.1 percent was more than market expected. Economists had forecasted a 3 percent decline.

Core machinery order is often regarded as an indicator of capital spending.

The weak data signals that a recovery in corporate spending may be delayed, as companies turn cautious due to signs of a slowdown in global growth and worries about a rising yen.

Kenneth Rogoff, Professor at Harvard University was a special guest host on CNBC today. He shares his concerns for Japan's longer-term growth prospects.

(SOT) Kenneth Rogoff, Professor of Public Policy and Economics, Harvard University:

“The end game on Japan is really unclear, their population is declining, they don't have an obvious way to replenish their workforce, and you know 5-10 years from now, they could have slow motion crisis. The problem is, it's an aging population, they are retiring, they want their money back. The pension funds are beginning to become net dis-savers, where are they going to get more money, and they have to start going abroad, to finance those JGBs, making them more vulnerable.”

And for the global macroeconomic growth outlook, Professor Rogoff says he is not expecting a double dip recession.

(SOT) Kenneth Rogoff, Professor of Public Policy and Economics, Harvard University:

“I think the key now is managing the recovery without getting too much debt. I favor soft monetary policy, firming fiscal policy, I think monetary policy is much more important as far as supporting the economy, a little inflation would be fine.”

US President Barack Obama came out overnight with a vow to boost American exports.

He announced the formation of a private sector council whose goal is to double US exports and create millions of new jobs over the next five years.

US Treasury Secretary Tim Geithner explained in an interview with CNBC's Larry Kudlow the significance of the move.

(Extracted from “The Kudlow Report”)

Geithner: We have a pro-growth agenda; part of the agenda is growing exports. They are central to our future. What the President said today that is important to the United States is that we're going to be committed to expanding opportunities for American businesses everywhere. Now, this President understands deeply that governments don't create jobs; businesses create jobs and our job, as government is to make sure we create conditions that allow businesses to prosper so that they can hire people back. Get this economy growing.

Kudlow: I hear you but as you know you've had tremendous criticism from the business roundtable, business council, you see this criticism with the small business surveys, they're worried about stimulus spending, taxing, cap and trade, financial regulation, healthcare, the cost of doing business, Summers characterized it as a bad environment for investment job, so how do you react to that? You know, changing the rules of the game, this over-regulation, how do you react?

Geithner: I think businesses are doing what they always do. They want their taxes lower, and less regulation, as they always do. Our job, though, is to make sure we create conditions to make this economy work better for the country as a whole. Now, just remember, when the President stepped into this job, businesses of America were out of business, people could not borrow, they were cutting deeply into the bone of the productive capacity of this country, they were completely out of commission, it was almost lights out. What the president did is to take on the tough things early, to bring stability to economy that was falling off the cliff. And businesses across this country are now in much stronger positions because of the actions taken. Now people don't like change, they don't like these reforms but he took on things that are absolutely critical to our capacity growth, in education, in healthcare costs, and in the financial system, and by taking those tough choices early, we're in a much stronger position now to make sure we can prosper going forward.

Kudlow: What is your economic outlook right now?

Geithner: I think this economy is healing, repairing damage caused by the crisis. We’re growing, and we've been growing now for 12 months, that's 6 months of sustained growth in private sector jobs. Coming out of the last recession to this almost 2 years before we had a sustained, set of almost month-to-month increase in private sector jobs, that's very encouraging. I think the most likely thing is you're going to see economy growing at a moderate pace, hopefully strengthening over time. This growth now you're seeing is being led by business investments, by exports, by manufacturing, that's very encouraging too. And again, if you look across American industries there, you see the great strength of America, you see our companies competing in the technology that the world needs, we're exceptionally good as a country making things that are very important to growth around the world, and that will serve us well.

That was CNBC's Larry Kudlow speaking with US Treasury Secretary Tim Geithner.

Well, that wraps up today's business highlights.

I'm Christine Tan from CNBC.

Have a good evening!

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