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Asian Markets On Red Alert For More BOJ Action

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.

Financial markets still on red alert - for more intervention from Japan - after Prime Minister Naoto Kan says the government's ready to keep intervening to curb the yen's rise.

(SOT) Todd Elmer, Currency Strategist, Citi:

"We suspect they could have success in the weeks and months ahead, we think that if you look at rhetoric from Finance Minister Noda, it's pretty clear that this is high conviction intervention, it's not the usual language about smoothing excess volatility. There's a lot of focus on the downside impact on the strong yen and the Japanese economy. We suspect initially they like to get to the 86-88 region, I think that's where you start to see a much broader base participation."

Doubts still remain though - on how effective Japan's unilateral selling spree might be.

(SOT) Len Blum, Westwood Capital, Managing Director:

“It's interesting if it's going to be effective, because un-coordinated intervention often doesn't work. You know the other question is whether or not if this is a political motivated move, in addition to being an economic motivated move because the ruling party has been challenged about this, whether or not, they were going to do something to stave off the rising yen.”

There's also concern the excess liquidity may impact the financial markets.

(SOT) Arjuna Mahendran, Managing Director, HSBC Private Bank:

"I think this is the most important implication, remember 2004, deja vu, we have a flood of yen liquidity coming into the financial market, and what did that do, it creates a bubble that's lasted 5 years, and bursting in 2008. This is something we have to watch as we go along. a new tap that's open in the global financial markets."

Meantime, a hearing on China's currency-practices enters its second day. U.S. Treasury Secretary Timothy Geithner is due to present his testimony to the U.S. House of Representatives' later today.

Geithner's expected to tell lawmakers that China's currency is gaining too slowly and that he'll be looking for new ways to get Beijing to move faster.

China has repeatedly said it will adjust its currency value according to its own needs, but since the criticisms intensified this week, the Chinese yuan has gained about point-8 percent against the dollar in the last 5 days.

(SOT) Kathy Lien, Director of Currency Research, GFT:

"Over next 24 hours we got big focus with Geithner testifying and TIP data. China seems to be doing some behind the scenes action. Letting yuan rise and buying JGBs so they don't come under criticism.”

Geithner's testimony comes amid rising support from U.S..

Lawmakers and industry groups for punitive action, that may include a bill that would impose duties on Chinese imports to force Beijing to let the yuan rise.

Not all are convinced the measures will work.

(SOT) Arjuna Mahendran, Managing Director, Head Investment Strategy Asia:

"There's an irony here is that a lot of the export companies in China are actually owned by the US multinationals, the likes of Walmart, and you name. A lot of the export sectors are foreign owned, and right now the Chinese priorities are quite different, they are trying to force these foreign owners of the export companies to raise wages, and we see wages going up by an average of 18% in the last year or so. The Chinese are very pragmatic, they're are trying to boost domestic consumption and doing everything possible to see China importing more."

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

Stocks in the region saw a lackluster day of trade, as investors waited for another move from the BOJ.

In Japan the benchmark Nikkei 225 ended almost flat after hitting a 5-week high in the previous session. Investors were disappointed as the yen fell less than expected, after intervention.

South Korea's KOSPI also finished lower, down by 0.7 percent.

Banks were the biggest laggards but gains among tech stocks helped to limit losses.

In Australia, the S&P ASX 200 closed lower by more than a percent, weighed down by losses in mining plays.

But Myer, the country's largest retailer managed to bounce up after it forecasted a 5 to 10 percent rise in profit for fiscal 2011.

In Greater China, the focus on mainland banking shares - amid talk that Beijing's considering higher deposit rates to help fight inflation.

And before we go, a report from CNBC's Janes Wells on "Standing Seats" on airplanes.

(Package starts)

I'm at the airplane interiors at the expo at Longbeach, California where the focus is on lightweight materials so that an airplane can increase its fuel efficiency but nothing is getting the attention as these airplane seats called the 'Sky Riders' from Italy's Aviointeriors. Not because they are 65% lighter than your normal airplane seat but because they are only 23 inches from seat back to seat back. That is, in the US, at least 8 inches shorter than normal. This allows airlines to create new, less expensive seats to cram in more people without actually making them stand. They key is Aviointeriors says, the seats are saddle shaped, pitching you forward like riding a motorbike.

(SOT) Frederik Meloni, Avioninteriors:

Meloni: Because it’s such a narrow pitch, 23 inches, never done before, you can fit more people in the same plane and actually make a higher revenue.

Wells: What if you are 6”5, or weigh 300 pounds?

Meloni: My point is very simple here. This is a sustainable product for the future. And basically it is not accepted so you have to lose some weight.

Wells: How confident are you that the FAA will ever certify these seats?

Wells: 110%. Otherwise, we wouldn't even be here talking about it.

Meloni says there are not going to actually ramp up production and seek regulatory approval until they get a firm order. They do say they have a lot of interest. One thing about these seats, he suggests, they are only good for flights that are no longer than 2 hours. I'm Jane Wells in Longbeach, California. Back to you.

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Well, that wraps up today's business highlights.

I'm Saijal Patel from CNBC.

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