Intel's Strong Earnings Boost Asia Sentiment

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

Hello to our viewers across China..

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

It was a sea of green across Asian markets today - with Intel's better-than-expected third-quarter results giving a boost to investor sentiment.

The chipmaker also gave a positive forecast for the fourth-quarter. That - as well as surprisingly strong machinery orders data - helped the Nikkei finish up almost 2-tenths of a percent. The tech gains also gave the KOSPI a leg up - lifting the index almost half a percent.

But POSCO shares finished down 4 percent in Seoul - after the world's third largest steelmaker cut its full year profit forecast by 7 percent, because of weak demand.

The Shanghai Composite reversed earlier losses to close up 6-tenths of a percent - helped by gains from property stocks. China's trade surplus was in focus, with data showing it narrowed to a five month low, coming in at 16.9 billion dollars in September... below market forecasts of 18 billion.

Its exports also rose at a slower-than-expected pace - up 25.1 percent from a year ago.

In Hong Kong, the Hang Seng was stronger in late trade. Shares in China Suntien Green Energy fell as much as 4 percent on its debut.

In other IPO news, shares in Mongolian Mining Corporation have climbed as high as 4 percent on debut in Hong Kong. Mongolia's largest privately held domestic producer and exporter of coking coal has raised 650 million US dollars in its listing. In a first on CNBC, MMC's Executive Director and Chairman said the company is looking to expand sales - which are currently only to China - to other markets in the region.

(SOT) Odjargal Jambaljamts, Exec Dir & Chairman, Mongolia Mining Corporation:

"In the near future we will look at also the seaborne market, Japan, Korea and India. But we are very optimistic in that the demand for both in China and in the seaborne market."

Meantime, Hong Kong's Chief Executive Donald Tsang has delivered his annual policy speech - focusing on the key issues of poverty and property.

Tsang announced a subsidized housing scheme - to help low income earners secure the money needed to enter the pricey property market.

(SOT) Donald Tsang, Hong Kong Chief Executive

"Under this Plan, the Government will provide land for the HKHS (Hong Kong Housing Society) to build "no-frills" small and medium flats for lease to eligible applicants at prevailing market rent. The tenancy period will be up to five years, within which the rent will not be adjusted. Within a specified time frame, tenants of the Plan may purchase the flat they rent or another flat under the Plan at prevailing market price, or a flat in the private market. They will receive a subsidy equivalent to half of the net rental they have paid during the tenancy period, and use it for part of the down payment."

The government has already earmarked sites for some 5-thousand flats to be built - under the "My Home Purchase Plan" scheme.

The first lot of units are expected to be completed by 2014.

In other news, Standard Chartered's Hong Kong listed shares lost ground in afternoon trade, after it revealed it's planning to raise 3.3 billion pounds in a rights issue.

The Asian-focused bank will offer new stock at 12.80 pounds - or 156.82 Hong Kong dollars a share. That's a 32 percent discount to the closing price in Hong Kong yesterday. The company says the rights issue will help ease the effects of the new Basel 3 capital requirement rules.

The jury's out on what the Bank of Korea will do tomorrow. On one hand, inflation pressures are mounting - but on the other, Seoul is concerned about the strengthening Won, which would be exacerbated by an interest rate rise. SBS CNBC's Rhie-young Lim takes a look at the BoK's quandary.


The kimchi crisis has been hitting the headlines lately in and out of South Korea, as prices of a head of napa cabbage now cross the 10 dollar mark. Just weeks ago it was 2 dollars a head. That and other price pressures have pushed producer prices for agricultural products to their highest level in September since 1965, up 16.5 percent.

(SOT) Lee Kyung-Bae, Housewife:

"I'm so worried about the rising price of vegetables...We try to eat something else like canned hams and eggs."

Economists fear those inflationary pressures may be here to stay.

(SOT) Lee Eun-Mee, Samsung Economic Research Institute:

"Consumer prices will exceed the government's target limit of 3% in Q4 as we see hikes in public utilities and gas, higher house rentals, and unpredictable service prices."

But policy-makers are torn by another concern - the strengthening won and its impact on the export heavy economy. Even as rivals like Japan try to dampen their currencies.

The won has strengthened by more than 5 percent in just the past month. Some analysts estimate that every 10 won move translates into losses of nearly 180 million dollars for exporters like Hyundai and Kia Motors.

The stronger won leaves small and medium exporters especially vulnerable, because many no longer hedge after to a bad experience with currency options during the financial crisis.

(SOT) Kang Nam-Hoon, Korea Federation Of Small And Medium Business

"We kept on losing out because of KIKO and didn't sign up for a currency hedge, so when the won takes off like this we are completely unguarded."

At the end of the day though, inflation is the core concern of the central bank, and that may just be the decisive factor for Thursday's decision.

Rhie-Young Lim, SBS-CNBC.


Still in Seoul... and CNBC's Chloe Cho is in the South Korean capital for the World Knowledge Forum. She sat down with Harvard Professor Niall Ferguson, to ask him about the global currency spat - which has been dominating the headlines.


Cho: This currency war talk we had and it's moved from Washington to Seoul for the November G20 summit. How much of this is really about China and not the United States?

Ferguson: Well I think it's much more about the US actually. There is a misapprehension that this is a spat or war between China and the US which isn't really right. I mean, if you look at the longer-term picture, what has happened has been that China has pegged to the dollar, It's varied that peg, but not massively over the last 10 years or so. But the really major trend over the last several years has been dollar weakness, punctuated by big rallies during the crisis. Now we're back on that dollar depreciation path after 2008-2009 flight to safety. And that's bad news for well practically everybody else, because as the dollar weakens and the Chinese remain more or less pegged to the dollar. It's what I call ChinMerica in action, China plus America pursuing a policy that's actually beneficial to both of those big countries, but leaves other countries, including for example South Korea, in really quite a tight spot. Currency appreciation right now whether you're a German exporter or a Korean exporters are pretty painful prospects, that's not what you want. But the way American policy is set up with Chinese policy so to speak, following it in the rear, points towards a major upward pressure on other currencies...and that extends right around the world to the Brazilian currency.


That brings you up to date with all the business headlines.

I'm Saijal Patel from CNBC.. enjoy your night.

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