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Asia Ends Mixed, Global Recovery Concerns Linger

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 today.

We start off with a look at how stocks in the region stacked up this Tuesday.

It was a mixed day of trading in Asia, as concerns over global recovery lingers extending the mood from markets overnight.

(SOT) Jim Awad, Managing Director, Zephyr Management:

"Most importantly, investors are waiting to see how far the economy is going to decelerate. There are signs that we have slowed to something like a 1% growth rate, and the question is it 1% on the way to re-acceleration to 2-plus, or is it 1% on the way to something lower than that? And you just don't know yet, so investors are rightfully taking a wait-and-see attitude.”

In Japan, shares stayed firmly in negative territory but managed to recoup some losses after news reports that Japanese Prime Minister Naoto KAN may offer another round of stimulus-measures to prop up the slowing economy.

The benchmark Nikkei 225 closed 4-tenths of a percent lower, at 9162, its lowest level since November.

Meantime, South Korea's KOSPI finished 0.67 percent higher.

Doosan Engineering and Construction gained on its decision to absorb the un-listed Doosan Mecatec.

In Australia, the S&P ASX 200 hit a one-week high during trading it closed up by almost 1 percent.

Banking stocks a major gainer after the central bank released minutes from its latest meeting and reinforced speculation that interest rates won't rise.

ANZ confirms it's conducting due diligence on a possible bid for a near 60 percent stake in South Korea's KEB.

Stocks in Greater China also saw mixed trading.

On the Hang Seng, property counters declined - a land auction today will test developers confidence after the government tightened mortgage rules and pledged to increase supply.

For mainland stocks, our next guest says there are still bargains.

(SOT) Erwin Sanft, Head of China and HK Research, BNP Paribas Securities (Asia):

"We have 3 laggard sectors where we're taking a close look at the moment. these are sectors which have underperformed the market by 40% or more over the past 12 months. You mentioned that railway construction sector's one of those, and it is a surprise, given that's the booming area of the economy. I'm also looking at the US-listed China internet stocks, online gaming stocks in particular, and the third area is that we upgraded the HuaNeng Power, the biggest power producer because it just looks really at the bottom of its trading range, and coal prices have peaked."

China's remains America's biggest creditor.

This even though, US treasury data shows China has been a net seller of Washington's debt for a second straight month in June.

Holdings fell for the 2nd month as China rebalanced its portfolio into longer term securities. China's holdings fell 24 billion dollars to 84.7 billion dollars.

(SOT) Marc Faber, Editor & Publisher, “The Gloom, Boom & Doom” Report:

“Of course the Chinese are not particularly happy, because they know very well that over time, the US dollar will weaken, that's the policy of the US government, to weaken the US dollar in order to cushion the down turning the American economy and so they will lose money on having dollar holdings. The problem is what else to do with your money, because the Euro has also problems, and other currencies have also problems, so a choice would be essentially to buy precious metals like gold and silver."

But Japan, the number 2 holder of US government bonds boosted its portfolio to just over 800 billion dollars.

Overall foreign investors bought 33.3 billion dollars worth of US Treasury notes, that's more than double the amount bought in May.

Meantime, China's M&A activity is rebounding strongly, says PricewaterhouseCoopers.

PWC says to expect robust deal activity to continue the rest of the year and into 2011.

While inbound investments have returned to pre-financial crisis levels, outward bound deals are also fast catching up, and reached a record 99 deals in the first half of the year.

(SOT) David Brown, PWC, Greater China Private Equity Group Leader:

“Outbound has continued to grow very strongly, it's at 50% quarter-on-quarter, dollar levels are very high, it's up to 25 billion, which is high, very high by China's records by China's standards, and it makes it now a meaningful part of M&A in China, so what you're seeing now is the out bound is becoming, it's here for a quarter of all of the M&A activity in China, by dollar value, so it becomes a meaningful aspect."

But though the resources industry remains China's main target, its appetite for deals abroad is now reaching other industries.

(SOT) David Brown, PWC, Greater China Private Equity Group Leader:

“Chinese companies looking to go out acquire technology, bring it back to China, put it to use within the Chinese economy and it's something we saw happening with Japan, maybe 30 years ago, and you see it being repeated here in China. But I think another thing that's quite interesting about outbound is you're starting to see some confidence building and some a bit of snowballing of activity, there's more and more Chinese companies going overseas, and are seen to be successful going overseas, then I think that breeds further confidence within the country so there's this virtuous circle building up.”

The Reserve Bank of Australia says it's "comfortable" leaving interest rates at average levels, according to the minutes of its latest meeting published today.

The central bank had kept interest rates pat in the last 3 meetings, holding it at 4.5 per cent, considering the nation's economic expansion won't stoke inflation and amid doubts about the global recovery.

Investors don't expect Governor Glenn Stevens to begin resuming interest-rate increases until next year.

The bank also said in today's minutes that the outlook for stronger growth in Australia's economy "has not changed."

RBA forecast is for GDP growth to increase gradually to the 3.75 to 4 per cent range in 2011 and 2012.

Well, that wraps up today's business highlights.

I'm Saijal Patel from CNBC.

Have a good evening.

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