Asian Stocks End Lower, but China Properties Climb

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

Good evening, I'm Saijal Patel from CNBC and you're watching "Asia Market Daily".

It's been a mixed day in Asia - with many of the key markets following Wall Street into the red. But South Korea reversed earlier losses - shrugging off a contraction in output - to finish up a third of a percent.

The Nikkei wasn't so lucky... slumping 2 percent as exporters were hit by a stronger Yen. Japan's industrial production fell unexpectedly in August... the third straight month of decline. Nintendo shares plummeted just over 10 percent - after the firm lowered its profit and sales forecasts. The game console maker yesterday warned its new 3D device won't be ready for sale until next year - missing the Christmas and New Year sales periods.

On a brighter note, China's property stocks held up well, after a new round of government measures to cool the overheated property market - were not as bad as expected. Some tax breaks for mid-sized and larger apartments will be scrapped... and banks have been ordered to raise the minimum mortgage deposit - from 20 percent - to 30 percent.

Those purchasing their second home will now need a downpayment of at least 50 percent. While third-home buyers must pay cash for the full value of the property.

But Peter Churchouse of Portwood Capital says he expects more measures are needed - to put a cap on the rising prices.

(SOT) Peter Churchouse, Chairman, Portwood Capital: ?

"I think this will just be a continuing process until we see prices start to slow down and transaction volumes start to slow down as well."

And the other big story coming out of China today is of course the Yuan.

The US House of Representatives have voted in favor of a bill - to pressure China to allow its currency to rise faster. The legislation - which China says violates World Trade Organisation rules - still needs to be approved by Senate, and signed off by President Barack Obama. The bill paves the way for extra duties on Chinese goods entering the US. Just before the vote, President Obama took aim at Beijing's currency regime - saying the Yuan is undervalued.

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

"They are managing their currency in a way that makes our goods more expensive to sell there and their goods cheaper to sell here and that contributes -- that's not the main reason for our trade imbalance -- but its a contributing factor."

Analysts say the trade war between China and the U.S. has gone on for so long now... it's become the norm.

(SOT) Nicholas Consonery, China Analyst, Eurasia Group:

"We're moving into a situation where trade conflict with China, what we have said, is that it's the new normal. I mean this is a situation where both governments are going to increasingly need to adapt to, companies are going to get caught up in. But again, just like the Republicans in the house it's hard to be on the wrong side of this issue in America right now. And I think corporate America's willingness to stand up for China has really deteriorated."

Staying in the region...

Shares in the Industrial and Commercial Bank of China hit a three week low - after the lender confirmed Goldman Sachs had cut its stake in the firm. Goldman sold almost a quarter of its stake in ICBC - which amounts to just over 3 billion shares. The move comes ahead of ICBC's 6.6 billion U-S dollar rights offering in November.

Elsewhere, China's Citic Securities is expanding downunder. The mainland's largest investment bank is reportedly planning to set up its first wholly owned offshore subsidiary, in Australia. Citic hopes the expansion... understood to be in the very early stages... will help it lock in more business from Chinese firms - making resource buys in the country.

Speaking of Australia... China's hopes of quashing BHP Billiton's 39 billion dollar hostile bid for Canada's Potash - could be hitting a hurdle. According to the financial times, talks between SinoChem - and potential bid-partner, Russia's UralKali - have collapsed. Analysts say any potential Sinochem offer for Potash can only go ahead if it sets up a consortium, to get the bid past Canadian regulators.

From a fight for fertilizer... to a tussle for tech talent. Tata Consultancy Services - India's biggest software services provider - is expecting global sales to rise... as developing countries race to close the technology gap. To keep up with demand, the company is investing in its talents - adding 40 thousand staff this fiscal year. Girija Pande of TCS spoke with CNBC's Chloe Cho about the company's growth prospects.


Girija Pande, Chairman, Tata Consultancy Services (TCS), Asia Pacific:

Pande: We've seen the worst of the recession, we believe. And we've come out of it reasonably well, and growth continues. Last year, our average growth on the revenue side is about 6 percent, that's lower than what we did in the past, we believe, this year is better than last year, and our first quarter results shows it. The growth if you look at all the projections, the Garners and IDCs, the growth in IT spending continues. We see in the US and North America, we've seen growth happening in the financial sector, in the retail side, and healthcare and manufacturing as well. So, we are seeing growth coming out. And in all our quarterly results, are showing growth in North America and to some extent, Europe has slowed down a little bit.

Question: Your rivals Wipro and Infosys have warned of slowing sales, going forward, do you project a similar trajectory?

Pande: Our growth, we can see a in short term demand, we have an order book, we have wins, and we are predicting on the basis of that. Now, as the environment unfolds, we will obviously adjust to it. As of now, we are reasonably comfortable, the order book and the revenue pipe line that we see. The reason I was saying right in the beginning is companies are transforming, their business processes and IT systems. They are taking advantage of this downturn to prepare themselves for the growth that's going to come.

Question: As we are about to flip the calendar into 2011, what do you think will be the key challenges for TCS?

Pande: Key risks are clearly going to be the way the North America grows, there's lots of issues there still, rising unemployment is an issue, growth, sometimes it's a question mark. If you talk about double dip recession, you have got Europe which is still not growing. The upside to that in America, Asia Pacific, our emerging markets, and new growth markets. We call markets, our traditional markets our western markets and the new growth markets. The new growth markets today, including India are around 20 percent of our portfolios. That today gives us a fair amount of, these are growing faster than the traditional western markets.


That brings you up to date with all the day's finance news.

I'm Saijal Patel from CNBC.. enjoy the rest of your night.

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