Asian Markets End Lower; Yen Hits 15-Year High

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.

It was a dismal Wednesday for stocks in the region after a sell-off overnight on the Wall Street and concerns over the health of European banks weighed.

Investors switched out of equities into safe havens such as gold - sending its prices to near record highs.

In Japan the benchmark Nikkei 225 closed down by 2.2 percent.

Japanese stocks were the worst hit as the Yen rose toward a fresh 15-year high against the dollar, dragging down the exporters.

The yen also climbed to a two-week high versus the euro on concerns about Europe's bank stress tests.

Separately data showed the Japan's current-account surplus widened more than economists expected, as export gains outpaced imports, suggesting that companies are so far withstanding the impact of the nation's appreciating currency.

In South Korea, the KOSPI finished lower by half a percent.

Banking stocks led the retreat. Samsung shares also lost ground, after the company says it expects a glut in D-Ram chips - used in computers - in the 4th quarter of this year.

In Australia, the S&P ASX 200 hit fresh 3-day lows ending the day down by 0.8 percent - with miners the big losers.

Victory for the Labor Party in Australia means there will be no escape from the mining tax for the big miners. But while the tax is still in development — the Greens and a key independent are putting pressure on the government to revisit a higher tax rate.

Treasurer Wayne Swan said earlier the government would be seeking support from all independents for the tax as it currently stand Swan

(SOT) Wayne Swan, Australian Treasurer:

“The MRRT is critical to funding our investments in superannuation, regional infrastructure and corporate tax. So the independents will want to be informed about the final design of the tax, and we will be seeking their support for the final design of the tax.”

(SOT) Jonathan Reoch, Senior Portfolio Manager, AMP Capital Investors:

“I think from the markets perspective the policy platforms are open to change. The mining tax obviously it's something that has been discussed in some detail, that will still go through, but a lot of the other platforms, broadband policy, potential tax reforms, all this are up for discussion and that will add to the mood of uncertainty.”

European lenders took a hit overnight on fresh concerns about the quality of banks' sovereign debt exposure.

That's after a Wall Street Journal report highlighted the weakness of July's stress tests saying they allowed European lenders to understate their holdings of potentially risky sovereign debt.

That fueled fears banks may not be as well capitalized as initially believed.

(SOT) James Shugg, Senior Economist, Westpac Bank:

“It's not just Wall Street Journal that's putting out these stories about the tests not being rigorous enough, the banks themselves have actually said, they were surprised at how they were allowed to understate some of their holdings of the bonds of European governments."

So I think it's absolutely right these concerns are back, they shouldn't have gone, we still have very deep concerns that we will ultimately have to see a re-structure of the debt of one or more European sovereign within the euro.”

Speaking exclusively to CNBC's Maria Bartiromo ahead of the Journal report, ECB President Jean Claude Trichet said banks capital bases had to be re-enforced.

Bartiromo: Is the banking sector well capitalized today?

Trichet: Well you know what the stress test has shown on both sides of the Atlantic that in the medium term perspective it has to be reinforced and one of the decisions that would be very important would be to how to organize the transition from the present situation to a fully confident that the system is much more resilient but of course taking into account the necessary transition.

One of the top stories on Wall Street overnight - Hewlett Packard is suing former CEO Mark Hurd and has asked a court to block him from joining Oracle saying the move would HP's trade secrets in peril.

CNBC's Jon Fortt has more.

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HP is suing former HP CEO Mark Hurd over his move to oracle. He's named an Executive there on Monday. He is taking the position of co-president and a member of the Board. But HP is saying hold on, wait a minute, you signed provisions that you can’t pass HP's trade secrets along in any of your future jobs.

This job with Oracle, they argue, just by definition, involves Mark Hurd passing along information about HP that he shouldn't pass along. What kind of information were they talking about: employee evaluations, HP's business plans, the sorts of companies that they might buy, the sorts of suppliers that HP deals with, how it deals with them. All down the line. HP is saying that the letter of these provisions, Makr Hurd was obligated to inform them beforehand, before he took this job at Oracle that he didn't do that.

They are also saying that they paid him millions upon millions of dollars to enforce and keep this confidentiality agreements that he is not doing that. HP asking for various types of release. They are also addressing the entire idea that HP and Oracle don't compete. They point out that in mid-March, Mark Hurd received from HP a competitive analysis of Oracle. They are also pulling out various statements from the press releases that oracle put out about Hurd's appointment saying that hey, wait a second, Hurd is talking about competing with IBM servers and storage. Servers and storage are a couple of areas that HP has significant businesses. That's the sort of thing that wont stand. Of course, you expect to see oracle push back on this saying that wait a second, non-competitive agreements don't stand in California.

They might also argue that HP is such a large tech company. By revenue, its e largest in the world. That any tech company that hurd went to could potentially raise the issue of non-compete or trade secrets violations. You can expect to see them fight back on this. Interesting to note, HP itself fought Lexmark's claims of trade secret violations when mark Hurd poached Bruce D, exec from Lexmark to come work art HP to run the management print services business. So not only is this an issue of Mark Hurd having left HP and the history there but now there is a lawsuit as well. For CNBC Asia, I'm John Fortt.

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Well, that wraps up today's business highlights.

I'm Saijal Patel from CNBC.

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