China's Tightening Move Weighs on Investor Sentiment

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”.

Many Asian markets lost ground today - after Wall Street suffered its worst trading day in two months, on the back of concerns that US banks may have to buy back billions of dollars in soured mortgage-backed bonds.

China's surprise decision yesterday to raise interest rates to cool its economy, also weighed heavily on investor sentiment.

Companies that rely on China's growth were the hit the hardest, by the mainland's first interest rate hike since December 2007.

Japan's Nikkei finished down 1.6 percent - while the ASX 200 slipped almost 0.7 percent, weighed down by losses from the big miners who export heavily to China.

The South Korean and Taiwan markets weren't as hard hit - both finishing in positive territory.

It was a choppy session in Shanghai. The market managed to claw back earlier losses - finishing up almost 0.2 percent.

Meantime, more tightening is expected from China's central bank - as it battles an overheated property market.

Eric Wong of UBS Investment Research has told CNBC's Bernie Lo this rate increase is just the beginning.

(SOT) Eric Wong, Head of Asia Real Estate Research, UBS Investment Research

“It's I suppose the start of a series of hikes which we've been calling for because China is in real interest rate negative territory for some time, and the only way you can actually suppress flaring prices is actually bring it back to positive territory. Obviously all these credit policies on developers, on mortgage lending and then idle land and even property taxes are peripheral because at the end of the day, it's the liquidity that will drive prices higher. So this is something we've been calling for some time and it's good to see it coming, because where the past six months of policies we've seen money leaking out of property into now Asia, to garlic, to mung beans, to all these other assets so in order to prevent further damages creating bubbles elsewhere. This is actually a good thing to do.”

Sticking on China, American and Chinese trade representatives have set a date for their annual talks in Washington.

U.S. Under-Secretary of Commerce, Francisco Sanchez says the forum will get underway on the week of December 13.

He says he's optimistic about achieving progress on issues surrounding barriers to China's government procurement market and protecting intellectual property.

Down in Australia, shares in the Ten Network surged 9.5 percent - following a report in The Australian newspaper that billionaire James Packer has launched a raid on the media firm.

Packer reportedly picked up a 16 percent stake in the broadcaster, after the market closed yesterday - paying $1.50 a share.

That's a premium to yesterday's closing price - and would value any potential takeover bid at nearly A$1.6 billion.

It's understood Packer has been buying more shares today - taking his stake to 19.9 percent, the highest an investor can own, before launching a takeover bid.

Staying down under, The big miners were in focus, with reports in the West Australian newspaper that BHP Billiton, Rio Tinto and Xstrata will walk away from a deal made with the Australian government, over the mining tax.

That news somewhat overshadowed BHP Billiton's quarterly production numbers.

Despite a moratorium on Deep water drilling in the Gulf of Mexico, the mining giant still managed to post record Petroleum output for the quarter to September.

Iron ore output rose 6 percent on year, but wet weather disruptions saw its coal production fall 5 percent on year.

And it's been a big day for the Aussie miner, with reports Canada's Saskatchewan government will give an unfavorable recommendation on its bid for Potash.

But that's not the miner's only headache, Norwegian fertilizer giant Yara has said it's open to buying Potash assets.

Warren Gilman of CIBC World Markets says BHP will now be doing everything it can to convince the Saskatchewan government that "the deal is of net benefit to Canada".

(SOT) Warren Gilman, Vice Chairman, CIBC World Markets:

“Well there has been a little bit of speculation that Marius Kloppers has had his fare share of difficulties over the last couple of years, with the aborted Rio takeover, and now the aborted Rio JV. So certainly he would like to see the Potash takeover completed if at all possible.”

And BHP is certainly going above and beyond saying in a statement today it's prepared to "make commitments which go beyond" the legal requirements, to address the Canadian Government's concerns about potential tax losses.

In other news, Yahoo disappointed after the bell today.

The internet search giant delivered tepid third-quarter revenue growth and forecasted weaker-than-expected sales in the fourth quarter, as it continues to lose market share to rivals like Google.

CNBC's Jon Fortt breaks down the numbers.

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Yahoo reported earnings after the bell and revenues, well they came in a little light, the street was looking for $1.13 billion, they got $1.12. Earnings per share though, a little better than expected. The street was looking for 15 cents per share. What they got, well it kind of depends on how you count it, 29 cents a share if you factor in the hot jobs sale, and more like 17 cents a share if you don't. Ok so what else did they have to say, well guidance a little bit weaker than the street was looking for. Yahoo guidance to a Q4 of $1.13 to $1.23 billion. Now the street was looking for $1.26. But there was more to it than that. Margins were up for Yahoo during the quarter. Their search revenue was down. Carol Bartz says she expects the search deal with Microsoft to be all worked out by the end of October. Also another bright spot. Yahoo has bought back 7 percent of shares over the past year, at prices below where the stock is currently trading. A few of the details that executive pointed out during the call. Asia was particularly strong in the display ads during the quarter. Also talked about Alibaba and the pressure that they're under to perhaps sell their stake in that Chinese internet company. Carol Bartz saying she's not going to really talk about that much anymore. But they hope for productive business relationship with Jack Ma and that company, and saying the bottom line is they've made the best investment in China out of anybody in the US, and they intend to get a good return for shareholders. Also saying that the private equity rumors are something that she wishes she could comment on, but as CEO, it's not appropriate for her to talk about these rumors that private equity firms are looking to team up with AOL and perhaps buy out Yahoo. But saying, look we like our strategy, we like our direction. So after all of that the stock was up just over 1 percent after hours. Investors maybe feeling a little bit better than they did during the regular trading, when the stock was bid down more than 2 percent. For CNBC Asia, I'm Jon Fortt.

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That wraps up all the day's Asia business news.

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

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