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Australian PM Gillard Secures Minority Government

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.

Australia's our first stop where the wait for a new government comes to an end.

It's been more than 2 weeks since the country went to the polls resulting in a political deadlock.

We go down now to Sydney where CNBC's Matthew Taylor has the latest

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It took 17 days of long negotiations with both sides of politics but finally a resolution has been reached in Australia's political deadlock.

Two country independents delivering victory to Prime Minister Julia Gillard and Labor - after Australia's first hung parliament in 70 years with a 2 seat majority.

(SOT) Julia Gillard, Australian Prime Minister

“Labor is prepared to deliver stable effective and secure government for the next three years, ours will be a government with just one purpose and that's to serve the Australian people.”

For the two regional independents a number of factors influenced their final decisions including the construction of a national broadband network and stability of the ruling government over the next 3 years.

(SOT) Tony Windsor, Independent MP:

"The issues that I thought were critical to this and the most critical was broadband, there's an enormous opportunity for regional Australians to engage with the infrastructure of this century.”

The two independents say they will not support no confidence votes against Gillard and the ALP but their backing is not an endorsement for Labor - which failed to hold onto its parliamentary majority after just one term in government.

(SOT) Rob Oakeshott, Independent MP:

“This parliament is going to be different, no one party has dominance over the executive or the parliament that is a reality of the way we are going to do business over the next three years and that is a good reality.”

Earlier in the day the other rural independent Bob Katter, from North Queensland, split ranks with his other colleagues deciding to support the Coalition.

Mr. Katter says the Labor government's plan for a mining tax was a deciding factor but the Coalition falling just short of being able to form government.

We did see a reaction to this news the S&P ASX 200 initially falling sharply but it managed to gain back some momentum by the close of trade. Amongst the biggest decliners the mining stocks, with labor back in power it meant that mining tax is firmly back on the agenda.

Saijal back over to you

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On the economic front, the Reserve Bank of Australia has left interest rates on hold.

The central bank has kept rates at 4.5 percent for the fourth consecutive month in a row.

In its statement, the RBA says the policy was appropriate as domestic economy is growing at trend.

(SOT) Peter Whitley, Senior FX Analyst, Thomson Reuters

"The market's been betting on a no-change , the interest rate market is not building in on any change in rates for the rest of this year, it's very much data-dependent. And obviously the big one here will be the CPI number at the end of the month, we've got the jobs data on Thursday to get over, that will probably be the next focus. But really you know that CPI number I think it's all about the CPI from here on end."

Over in Japan, the central bank has also decided to forgo any monetary easing for now.

The Bank of Japan's keeping its overnight call rate unchanged at 0.1 percent saying the economy is showing further signs of moderate recovery.

But, it will still keep an eye for downside risks amid uncertainty over the U.S. economic outlook.

Meantime, the market's still focussed on the yen's strengths but not expecting any intervention soon.

Chrisitan Carillo on the conditions for the authorities to step in.

(SOT) Christian Carrillo, Head of Asia-Pacific Interest Rate Strategy, Societe Generale Corporate & Investment Banking:

"The levels that we are thinking about is around the 80 dollar yen, but more importantly if we are seeing a type of disorderly yen strengthening move in which you see the yen being stronger against all major currencies and it happens very quickly, so that some type of reaction by the authorities is necessary to make it stop.”

In other news, U.S. President Barack Obama unveiled a $50 billion plan to overhaul America's infrastructure overnight aimed at boosting job creation.

(SOT) Barack Obama, U.S. President:

“Over the next six years, we are going to rebuild 150,000 miles of our roads- that's enough to circle the world six times. That's a lot of road. We're going to lay and maintain 4,000 miles of our railways- enough to stretch coast-to-coast.”

The infrastructure plan is the first in a series of steps the president is expected to unveil this week to give the economy a boost.

(SOT) Shane Oliver, Head of Investment Strategy and Chief Economist, AMP Capital Investors:

"There's a dying need or a big need in the US to reinvigorate infrastructure in the US. It is very run-down and if you 're going to invest, borrow money from people to invest, that's probably the best way to go about it. The only thing is $50 billion over 10 years, I've seen reports say over 6 years, that's a relatively small amount compared to the trillion dollar size of the US size economy. I'd have to say one of the reasons America growth performances have run down the last decade or so, they've let their infrastructure run down, so if they can get that up again, it will have US productivity. It's certainly moving in the right direction but a lot of question marks remain.”

Later today the President is also set to announce initiatives to rescue the failing housing sector and the market's looking forward to some mortgage relief for home-owners.

(SOT) Shane Oliver, Head of Investment Strategy and Chief Economist, AMP Capital Investors:

" If you let household fall another 10 percent, another 400 million extra household into negative equity in term of their mortgages. I think that would be a very dangerous situation. I think it's critically important to help struggling home owners to make sure they don't get another dip down leg in the housing sector, so I think that's one area I think they need action pretty quickly, hopefully in the next month or the next few weeks.”

And now for a quick look at how Asian stocks performed today.

Regional markets were lackluster with Wall Street still on holidays.

In Japan the benchmark Nikkei 225 closed down 0.8 percent.

Japanese lost ground on concern a stronger yen will hurt the value of exports.

Meantime, South Korea's KOSEI finished 0.3 percent lower as the market moved into consolidation mode.

But steel mills managed gains on hopes for higher prices after reports that China has ordered 18 steel mills to shut temporarily.

In Australia, the S&P SAX 200 finished flat after spiking up to 4 week highs.

Qantas Airways in the spotlight, after British Airways says it's still keen on a merger, if the Australian airline remains interested.

Well, that wraps up today's business highlights.

I'm Sail Patel from CNBC.

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