Asian Stocks Close Up, Eye US Jobs Report

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.

A mixed day of trade in Asian markets this Friday. Most started on a positive note but gave back some of the early gains.

In Japan the benchmark Nikkei 225 closed up almost 0.6 percent. Exporters led the way up. But, fast Retailing and ABC Mart slipped after both companies reported a decline in retail sales.

Meantime, South Korea's KOSPI finished higher by 0.2 percent led by tech stocks. Shinhan Financials though, continue its losses after a scandal involving the group CEO.

(SOT)Michael Kurtz, Head of Regional Strategy, Macquarie Securities:

“One of the interesting fact of the markets in Asia right now is that the more cyclical higher beta markets tends also to be the ones that are cheaper and less owned by the institutional investor community.

so we are talking about Korea, we are talking about Taiwan we are even talking about Singapore in this environment. Particularly the capital goods and more export intensive markets like Korea and Taiwan, they will get the benefit of what we think the driver of the US recovery is going to be which is capital spending by US corporation not so much the consumer.”

In Australia, the S&P ASX 200 closed up by 0.2 percent with mining stocks among those most actively traded.

Andean Resources soared after receiving a $3.2 billion takeover offer from Canadian rival - Eldorado Gold.

A slew of economic data out of Asia today.

First up in Japan, where capital spending fell less than expected in the April-to-June quarter. According to Reuters, capex fell 1.7 percent year-on-year against a forecast of a 6.5 percent.

Analysts say the better than expected data mean second-quarter GDP growth will likely be revised up from a preliminary estimate of 0.1 percent.

There's still caution though that the strong yen and slowing export growth continue to pose a risk to economic outlook.

Over in South Korea, gross domestic product expanded 1.4 percent in the second quarter, from the previous 3 months. That's slightly lower than the 1.5 percent in earlier estimates.

Analysts are expecting South Korea to expand by 6 percent this year powered by export growth.

In Hong Kong, solid growth in overall new orders and output gave a boost to August PMI numbers. The purchasing manager's index rose to 52.3 in August from 51.3 in July - showing an improvement in business conditions. Private sector employment also gained - marking 11 consecutive months of increase.

In Singapore, manufacturing activity contracted in the month of August, after expanding 15 months in a row.

It joins Taiwan with its contraction, while Japan and South Korea just hover in expansion.

China on the other hand, has its PMI rising from 51.2 in July to 51.7 in August.

And later this evening, markets will be keeping a lookout for U.S. Non-farm payrolls for August. The number will give an indication about the depth of the slowdown.

Analysts looking at a 100-thousand drop in payrolls while the closely watched unemployment rate is expected to tick higher to 9.6 percent compared to 9.5 percent in July.

(SOT) Gary Schlossberg, Senior Economist, Wells Capital Management:

“I think it's going to be some time before we get acceptable job gains, job gains strong enough to make inroads against the unemployment rate. Businesses, are under tremendous pressure, unit sales have picked up a bit, the growth, but pricing power just beginning to recover, and in that environment business continue to focus on cost control. Still in the U.S., President Barack Obama will be holding a news conference next Friday, in an effort to revive the economy ahead of November's Congressional elections. Although the White House was quick to dash reports that the President is considering a second stimulus package, there're expectations for more quantitative easing down the road.”

(SOT) Michael Preiss, Chief Investment Strategist, Standard Chartered Bank:

"There's still a lot of uncertainty, a lot of charts still look the wrong way, if you look at some previous indicators they are all looking down, but I supposed the real question is whether the weaker the numbers get, the more quantitative easing we will see."

Meantime, The ECB says it's optimistic the Eurozone won't slip into another recession, but that it still remains in crisis mode.

The central bank had kept its key interest rate of 1 percent overnight, but raised its growth forecast for the next 2 years.

It also extended emergency lending measures for banks into 2011.

Despite the extension, ECB Chief Jean-Claude Trichet tells CNBC his cautious exit strategy remains on track.

(SOT) Jean-Claude Trichet, ECB Chief:

“The fazing out process is still proceeding and it is in particular proved by the fact that we have the maturing of the extraordinary measures we have taken in the past, like the 6 month operation and 12 month operation.”

Also speaking to CNBC was French Finance minister Christine Lagarde, we asked her if she feared a second round recession.

(SOT) Christine Lagarde, Finance Minister of France:

“I don't believe in a double dip recession. We have acted in the last two years collectively with a clear focus on avoiding protectionism, reactivating the financial pipes and kick starting growth. I'm not sure that the growth will be as strong or as vivid, or originating from the same sectors as ten years ago. The world has changed clearly; but I don't believe in this double dip approach that is feared by some.”

And before we go, a quick look ahead to the key issues out of India next week.

Here's CNBC-TV 18 reporter, Reema Tendulkar:

“It's likely to be a very light week for the Indian markets next week.

These are very little in terms of corporate announcements or even the events which take place. And it's also a short week so next Friday Indian markets will be off for a public holiday, which is Ramzan. But the event to watch out for is September 9th. That's a Thursday. Gujarat Pipavav Port, this is the IPO that will be listed on the exchange. The issue price has been fix. It's at 46 rupee. It's got a lot of subscribers, almost about 19 times in totality. So those are the events we are watching out for.”

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