Asian Markets End Mixed, M&A Deals Support

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

Hello and welcome 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 and here are the top stories across Asia today.

Our first stop in India, where the Reserve Bank of India has raised rates by 25 basis points to 5.75 percent.

The move was expected, as inflation has been holding persistently above 10 percent in the past 5 months.

In an earlier statement, the central bank had also revised up the growth forecast to 8 percent and is hopeful that growth may even exceed that target.

If growth does accelerate, RBI says that will mean more rate hikes.

Peter Redward of Barclays Capital with his outlook for India's growth.

(SOT) Peter Redward, Head of Research for Emerging Markets Asia, Barclays Capital:

“We are looking for growth this fiscal year of about 8-and-a-half percent so we think that there's actually a little bit of an upside risk to that. And India's economy, the potential growth rate of the economy probably isn't on the side of 8%, so we think that the economy can continue to grow extremely quickly, driven by domestic demand. In terms of our rate trajectory, the RBI's basically been moving in 25 basis point increments, one at a policy statement, one in the meeting, one at the policy statement, ratcheting rates higher."

India and China are often seen as the engines of growth in Asia.

But, the Chinese economy historically outpaces India's on many fronts, China's fast-acting government has implemented new policies and that has helped the economy pick up more speed.

But India is fast closing up the economic divide.

(SOT) Peter Redward, Head of Research for Emerging Markets Asia, Barclays Capital:

“If you look at India's growth, as the investment to GDP ratio has risen, we've seen a rise, a structural rise in GDP growth. If we look at China on the other hand, GDP growth has averaged about 10% per annum, each decade for the last three decades, but in the last decade, we've seen investment as a share of GDP grow from around 35% to nearly 50%, in other words for every increment of growth, China is having to throw more coal on the fire to get us there. That’s actually quite worrying in the medium term. In the short term, probably no feat, but if you were to project growth rate about 7-10 years time from now, I’d suggest China's growth is actually going to slow significantly. Whereas when we look at India, it's much more micro,the investment that's taking place is hidden, it's not in big projects, it's small businesses, small medium size enterprises, adding extra and new technology, and that's where the growth is coming from.”

British Petroleum or BP for short has been in the limelight for the oil spill in the Gulf of Mexico in the recent months.

It all comes to a head today as the energy giant reports its quarterly earnings, tallying up its losses and its chief executive Tony Hayward to be replaced.

CNBC's Maithreyi Seetharaman with the details from London.

Well, BP has taken a pre-tax charge, I should say, of about 32.2 billion dollars, all culminating from the Gulf of Mexico oil spill. This does include the 2.9 billions already spent during the quarter, it also includes that 20 billion dollar. Interestingly, net loss came in at about 17.1 billion, if you take in the gulf of Mexico out, they would have actually seen a net profit rise of about 77%.

So all of it comes down to the Gulf of Mexico, and the oil spill there, which has now cost Tony Hayward his job. He’s been removed as CEO, you've got Robert Dudley taking his place. Analysts quite impressed with that, again, this seems to be the right man to take over the job, maybe put an American face to this company, which is having so much trouble in Congress at keeping its US operations.

Also, the fact that the company's come out saying that they're going to reduce their net debt, down to about 10-15 billion in the next 18 months or so. Also talking about the fact that they're going to sell non-coal assets, assets that are more important to other companies than to BP for about 30 billion.

That’s expected to be raised, that's going to contribute again, to any cost-related to this BP oil spill, but right now, the big headline of course, being Tony Hayward's lost his job, he's going off to their Russian counterpart, and of course, Robert Dudley takes over BP as CEO.

The Dow's triple digit gains overnight was mostly lost in Asian trade today.

It was a mixed performance from regional markets.

In Japan the benchmark Nikkei 225 closed 0.07 percent lower. Optimism over a strong earnings season was dampened by worries of its strong currency.

Companies which rely on overseas sales declined after the yen strengthened. Toyota, Canon and Nintendo all recorded losses.

South Korea's KOSPI also finished lower by 0.04 percent

LG Electronics, South Korea's second-largest electronics maker managed to advance after JPMorgan raised the stock's rating to "overweight" from "neutral."

In Australia, the S&P ASX 200 bucked the trend and closed up higher by 0.3 percent.

Over in China, concern about rising credit risks at banks and prospects of slowing economic growth rattled the markets.

Charles Ma of BNP Paribas still thinks there's value in the consumer sector, despite the government's measures to moderate growth.

(SOT) Charles Ma, Investment Specialist, Chinese Equities, BNP Paribas Investment Partners:

“The general increase in the income level of the Chinese people, I mean, we now see the average per capita had reached about 6000 RMB, so usually, when you hit that level, you see people buy more cars, buy more white goods, like refrigerators and air-conditioning. Number two is, of course, China has been telling the whole world that they will be rebalancing their economy, away from exports to more domestic consumption, so they have done a lot of policy in terms of stimulating those areas. And the third thing, which is what we see more sustainable going forward is what we call the urbanization process 093449 more people are moving to the cities, once they move to the cities, then they will have access to electricity, when they have access to electricity, and with the income growth, then they will buy all those electronic goods."

Southeast Asia markets had a better day where the consumption sector is also choice for Norman Chan in Banyan Asset Management.

(SOT) Norman Chan, Chief Investment Officer, Banyan Asset Management:

“I think Asia, a lot of Asian regional markets, we found very good value, some less researched areas, such as smaller markets like Malaysia, Thailand or even Indonesia, especially for domestic consumption plays, those we less brokerage coverage, still have interesting value. In Southeast Asia, we have seen the volatility has not been that much. And especially for if you can be bottom up stock-picking, and you can probably reduce correlation of the market.”

Well, that wraps up today's business highlights.

I'm Saijal Patel from CNBC.

Join me again tomorrow evening.

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