Asian Stocks Rise on Positive US Finish

This is a transcript of top stories presented by China's CCTV Business Channel as produced by CNBC Asia Pacific.

It was a sea of green across most of Asia today, putting the region's markets on track to record their biggest monthly gain since July 2009.

The Nikkei and Taiex both put on about 0.6 percent, while the KOSPI climbed just over half a percent.

China's manufacturing industry was in the spotlight.

HSBC's China Purchasing Managers' Index climbed to a 5-month high, thanks to stronger gains in output and new businesses.

The Hong Kong market rallied in early trade - hitting an 8-month high by midday.

But Gome shares were hit hard in heavy trading, falling as much as six percent.

The slump follows yesterday's decision by shareholders to keep Chen Xiao at the helm, rejecting a proposal from jailed founder Huang Guang-yu to oust the Chairman.

Shareholders also rejected Huang's proposal to install his sister and lawyer as directors.

But Francis Lun of Fulbright Securities says it was only a "partial victory" for Chen Xiao -- with shareholders supporting Huang's bid to cancel a mandate to sell new shares.

(SOT) Francis Lun, General Manager, Fulbright Securities

"You need 25 percent to call an EGM, so Chen Xiao planned to issue 20 percent share again and again to dilute his [Huang Guangyu's] shares to under 25. The 20 percent mandate, the new share mandate, is bad for the small shareholders."

From one battle to another -- There are new delays in America's plans to punish China for not allowing the Yuan to appreciate faster.

The U.S. Senate is now likely to wait until after the mid-term elections in November -- to vote on the legislation.

The House of Representatives is still expected to vote on the bill overnight.

Still on China, United Parcel Service is delivering on plans to enter the domestic Chinese market.

UPS says it'll put in a license application to China's postal regulator - as early as this week.

It's going to roll out a next-day delivery service -- and second and third-day delivery products -- as soon as it's approved.

The company says demand for its services in China could be as huge as five million packages a day.

From delivering parcels to delivering on a much more global scale.

HSBC's latest Trade Confidence Index shows traders are optimistic about demand in the next six months.

More than 5,000 exporters, importers and traders from 17 different markets were surveyed -- with emerging markets the standout.

(SOT) Simon Constantinides, Head of Trade and Supply Chain Asia Pacific ex Greater China, HSBC

"While regional trade is very very strong and will... continue to be strong on the outlook. There is more positive sentiment in Europe. I think traders feel some of the worst is behind them. We certainly see the emerging markets as fueling global trade. 58 percent of GDP in the region is from global trade, and we see that still continuing."

Meantime, there's been mixed news out of Japan, with the release of the central bank's Tankan survey.

The survey shows confidence among manufacturers improved for a sixth straight quarter.

But companies warned they expect economic conditions to get much worse.

(SOT) Naomi Fink, Japan Strategist, Bank of Tokyo Mitsubishi.

"I think the Tankan shows a great deal of uncertainty as central bank governors probably all around the world have pointed out. So it really shows greater vulnerability rather than any conclusive forward looking evidence on a double dip. However I think that central banks will be sensitized to this kind of indicator just because the vulnerability might mean that a little bit extra pro-active stimulus might help to avoid the impact of any shock."

And analysts say that negative outlook could spur the Bank of Japan to ease monetary policy further next week.

(SOT) Tomohiko Taniguchi, Professor by Special Invitation, Keio University

"The central bank of Japan has started to show some of the body language, if you will, of a possibility of Japan's own QE2 (quantitative easing 2). But even if the Bank of Japan starts to buy more JGBs, the monetary connection between the banking sector and the real sector has long been broken because of the deflationary situation. So I think it's going to give an extended seatbelt, if you will, for the Japanese economy, but not so much boost."

On a more positive note, China is offering tax breaks for public housing rentals.

The move is part of Beijing's attempt to increase reliance on state-subsidized housing - in a bid to cool its overheated property market.

Staying in China, the country's Iron and Steel Association is digging in for a more favorable iron ore pricing system.

It warns costs may rise because of the Australian mining tax.

CNBC's Matt Taylor spoke with Fortescue Metals boss, Andrew Forrest about how China's demand for Australia's commodities is holding up.


Andrew Forrest, CEO, Fortescue Metals:

"I think the demand picture is ok. I think that prices may not be anywhere near as optimistic as people were hoping. And there could be some very sharp bumps in the road price wise. I think where Australia can compete is volumetrically, being able to move quickly to a commanding position in the supply of its critical commodities, and that's where governments I think must be careful about assuming strong prices by doing everything they can to encourage suppliers to compete against the rest of the world."

Matt Taylor, CNBC Sydney

"Well it's interesting you mention prices. That would appear to correlate with a report that Access Economics has put out which says that commodities prices will weaken going forward and essentially it puts the budget surplus in risk. Access Economics saying that the budget will return to surplus when it's supposed to in 2012/2013 but then a year later it will be back in deficit because of falling commodity prices. Would you then agree that we should be cautious when it comes to forecasting prices for commodities?"

Andrew Forrest, CEO, Fortescue Metals:

"Look I haven't seen that report but in essence I would agree with that. I think Australia needs to encourage its producers to compete on the world stage. It's the only way we can hope for a strong Australian economy. If we want to go to the casino and bet for high commodity prices, tax companies which could otherwise grow, that means that we'll make a shorter term dividend now, for a much longer term loss."

Matt Taylor, CNBC Sydney

"Well in terms of the demand picture then, how does Fortescue sit right now? Is it a case that demand is outstripping supply? Or are you comfortable with the production right now? Or is there further scope for advancement in that area?"

Andrew Forrest, CEO, Fortescue Metals:

"Right now we are completely sold out, and we know that our customers, if we don't increase our production, they'll go to Brazil, go to other parts of South America. They'll go to Africa. And they will get that production. But Australia will lose. And now, I think commodity prices are unstable, and that's why our founding fathers went for royalties instead of profit taxes because profits of mining companies are notoriously cyclical. They spike and they fall."

Matt Taylor, CNBC Sydney

"Well you do mention a profits based tax, and of course we do have the mineral resources rent tax on the agenda here in Australia. The China Iron and Steel Association has come out to say that Chinese steel mills would not willingly pay more for commodities as a result of the mineral resources rent tax. As in costs being passed on to consumers. So as a miner, how do you mitigate this type of challenge or this commentary that's coming out of a body like the CISA?"

Andrew Forrest, CEO, Fortescue Metals:

"You move offshore. You start mining offshore. You take your jobs, you take your skill bases offshore. That's why the three multinationals that did the MRRT deal with the government prior to the election. That's why they're comfortable about it. It's a tax which they won't pay in the main. And they will hedge their bets by moving Australian jobs, Australia skills offshore. Now I think that's a tragedy. But that's how they will hedge their bets against CISA's stand."


That's all the latest business news. I'm Saijal Patel from CNBC. Have a great night.

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