Asian Markets Mixed Ahead of Key US Jobs Data

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 and here are the top stories across Asia this Thursday.

Markets in the region started the day on a positive note after U.S. stocks climbed overnight thanks to encouraging reports on jobs and the services sector.

In Japan the benchmark Nikkei 225 closed higher by 1.7 percent.

Automakers drove the gains after Toyota, the world's biggest automaker by volume, posted stellar quarterly earnings and gave a bullish outlook.

(SOT) Vivek Vaidya, Director of Automotive & Transportation, Asia Pacific, Frost & Sullivan:

"This company is a resilient company, and it is definitely going to bounce back. It's definitely going to get their act together. So, as far as the product is concerned, as far as the market acceptance is concerned, things seem to be turning around. but this class action lawsuit etc things started looming large over them, and that would hit them maybe four to five years on the line. but as far as the market the product is concerned, things seemed to have turned around."

Meantime, South Korea's KOSPI finished lower by 0.3 percent dragged down by the banking sector, after Woori Finance' weak quarterly results.

Hynix managed to gain some ground though, its shares were among the most heavily traded.

The world's No.2 memory chip maker got a lift from hopes that chip price will fall less than expected this year.

In Australia, miners led stocks higher and the S&P ASX 200 closer up by more than half a percent.

Over in Greater China, a mixed day of trade on the Hang Seng but market watchers are expecting it to breach the twenty-two thousand level in the next several sessions.

(SOT) Fancis Lun, General Manager, Fulbright Securities:

""Definitely next week, because we have more companies reporting, and also because actually last year the first half was a little bit bad year, so you still have many companies reporting stellar figures, so I think the corporate earnings alone will enable the Hang Seng Index to breach 22,000.”

The European Central Bank will be meeting later today for its monthly policy meeting.

With inflation in the 16-country euro zone still undershooting and the region's recovery still delicate, market consensus is for the central bank to leave its key lending rate unchanged, at a record low of 1 percent, and the banks’ expected to keep rates at that level till next year.

But, with the European economy slowly improving in the last couple of months, ECB's President Jean Trichet may consider his second run at an exit strategy.

Growth in Europe's services and industries accelerated in July, while business confidence in Germany soared.

Loans to households and companies also grew at the fastest pace in 20 months in June.

The euro has rebounded 10 percent since June and stocks have jumped.

However, not all economists are convinced the Europe's totally out of the woods although Germany has outperformed, other regions have lagged.

(SOT) Stephen Halmarick, Head of Investment Market Research, Colonial First State Global Asset Management:

“ I think a lot of the growth out of Europe and particularly Germany is because of the weakness of the Euro, and some of that's already reversed, and we are going to get, I think, that big South European divide, so the Southern European countries still doing quite poorly but Germany doing quite well. But that sort of two-speed Europe is probably not a great combination to have.”

Although the bank stress tests had help push once-raging sovereign debt fears further into the background, Stephen Halmarick says more needs to be done.

(SOT) Stephen Halmarick, Head of Investment Market Research, Colonial First State Global Asset Management:

"The European banking system still in dangerous territory, and they’re going to have to get a lot of deleveraging out of the banking system, for quite a number of years to come. They're going to get countries deleveraging as well, because they really have to cut their fiscal positions pretty aggressively. so if you've got deleveraging at the bank system, and deleveraging at the country level, it's hard for me to see significant economic growth.”

Overnight, better than expected private jobs and services data from the US had the markets cheering and gave a boost to the US dollar when it was published.

What does this mean for the non-farm payrolls out Friday? Is there room for optimism.

The median forecast of economists polled by Reuters is still calling for a decline in payroll with an overall drop of sixty-five thousand in the month of July.

CNBC's Rick Santelli fills us in.

'''ADP 42,000, better than expected, but of course, we don't want to look at positive and dismiss it, but it definitely still remains a bit lightening the question still remains: are we going to see more horsepower in the job creation arena, maybe we'll get more information regarding that when the Bureau of Labor statistics puts forth their reporting 30 eastern on Friday.

Of course, these will include government hiring and firing because census workers are probably all going to make the headline number Friday a negative number even though private job growth, just like ADP, should be a positive number. miles will also get initial continuing claims, the bell's toll, we don't want to see anybody filing for unemployment claims, but nonetheless those numbers look to remain in the basic area they have been around 450,000 initial 4 and a half million on continuing claims. we continue to monitor claims like ISM.

Now manufacturing, which was out today, is a good number, better than expected. but it still didn't take out the high watermark which happened to be ensured by three months, March, April, May, or hovering at 4-year highs, this number is a bit lower, but still above 50, which means it's expansionary. so what we're arguing really is the extent of the horsepower of many of these metrics, not necessarily the fact that they're positive or looking at healthy economic growth, just that what pays and how much push and these areas of service and manufacturing are going to put forth.”

Well, that wraps up today's business highlights.

I'm Saijal Patel from CNBC.

See you again tomorrow.

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