(Repeats item first filed Tuesday with no change to text)
Nov 10 (Reuters) - Asian corporate earnings have generally
beaten market forecasts and there are signs of renewed
confidence in recovering economies -- from IPOs and M&A to IT
spending and capital investment.
Much of the uptick has been driven by massive government
stimulus spending, so state exit strategies are closely watched
for signs of sustainable recovery without this crutch.
Below, Reuters Asia specialist correspondents and editors
in the financial, autos, resources and technology sectors offer
their insight on current trends.
Double-click in [brackets] for related news.
Top Asian company earnings news [E-ASIA-RES-NEWS-LEN]
All Asia company earnings news [E-ASIA-RES-LEN]
Asia company earnings previews [E-ASIA-LEN-RESF]
For Thomson Reuters Asia Earnings Monthly report, click:
here
14300_9.pdf
FINANCIAL
M&A RETURNS; CHINA IPO INDIGESTION?
An M&A pulse is returning, with two forced sellers
disposing of assets in Asia at lofty prices.
Singapore bank OCBC (OCBC.SI) is buying ING's (ING.AS)
private banking unit in Asia, paying a higher-than-expected
$1.5 billion, and AIG (AIG.N) agreed to sell its Nan Shan
Taiwan insurance unit for $2.15 billion to a consortium, in a
deal that at one point looked as if it wouldn't sell for more
than $1.5 billion.
Bankers and analysts argue there's plenty of liquidity in
Asia just now. After the market took off this year and settled
a few months ago, confidence looks to be returning among
executives looking to do deals. But one place where confidence
is fading is the Hong Kong/China IPO market.
While offerings are still pricing, the market has signs of
indigestion, especially with Chinese property IPOs. Developer
Evergrande (3333.HK) drastically reduced its deal, while
mainland developer Excellence Real Estate Group shelved its
plans for an up to $1 billion citing market conditions.
Michael Flaherty (michael.flaherty@thomsonreuters.com)
[ASIA-RTRS-E-LEN-FIN-NEWS] > Even distressed sellers
fetch top prices in Asia[ID:nHKG216796] > DBS leads Q3 surge in
Singapore bank profits [ID:nSIN12742] > TAKE A LOOK-Global
IPO market heats up [ID:nSP393789]
AUTOS
YEN HIT: JAPAN LOSING PRODUCTION
With most Japanese automakers reporting interim earnings
better than their initial expectations, the near-term focus
will be on the progress they make for a further recovery in
profitability.
One trend emerging is the transfer of some vehicle
production from Japan, where a stronger yen has made
export-bound vehicles less competitive and profitable,
especially against products from South Korean rivals.
That trend will be keenly watched by both the industry and
macro economists as Japanese automakers, lamenting the new
government's laissez-faire stance against the yen's rise,
threaten to reduce domestic production even more.
Chang-Ran Kim (ran.kim@thomsonreuters.com)
[E-ASIA-AUT-NEWS-RTRS-LEN] > Toyota Q2 profit
surprises; halves loss outlook [ID:nT145640] > Nissan changes
loss guidance to profit [ID:nT127974] > TAKE A LOOK -
Auto industry grapples with change [ID:nCARS1]
RESOURCES
MONGOLIA IN FOCUS: CHINA COPPER WORRIES
The land of Genghis Khan is catching fire as the region's
next go-to destination for mining related investments.
China Investment Corp (CIC) [CIC.UL], a near-$300 billion
sovereign wealth fund, agreed to give $500 million to
Mongolia-focused coal firm SouthGobi Energy SGQ.V. It is also
investing $700 million in Iron Mining International Ltd, which
runs an iron ore mine in the country.
Additional deals are expected as the theme spreads to more
investors across Asia.
Mongolian officials, meanwhile, debate who will win the 49
percent stake in its $2 billion Tavan Tolgoi coal deposit. They
have said the decision will be made this year, but high-level
deals historically move at a glacial pace in the country of
windswept grasslands.
In China, September imports of copper soared 28.7 percent,
but high import prices are likely to have crimped another surge
in October. China's apparent copper demand grew 21 percent in
September. Jitters linger that inflation fears and stockpiling
are behind the surge, and real underlying demand is dragging.
Joseph Chaney (joseph.chaney@thomsonreuters.com)
Metals/Mining - [ASIA-LEN-RTRS-MTL-NEWS]
Energy - [ASIA-LEN-RTRS-ENR-NEWS] > CIC invests $700
mln in Hopu-backed miner [ID:nHKG368809] > Rio/Chinalco in
talks over Mongolia mine - paper[ID:nSYD330534] > China copper,
oil demand looks hot, but is it? [ID:nPEK282801]
TECH
THE CHIPS ARE DOWN ... FOR LESS EFFICIENT MAKERS
After a long, dark winter, beleaguered logic and memory
chip makers see signs of spring, even as consolidation may
squeeze out smaller, less efficient manufacturers.
Elpida Memory Inc (6665.T) and Hynix Semiconductor Inc
(000660.KS) have posted their first profits in two years, and
memory chip leader Samsung Electronics Co Ltd (005930.KS)
posted the best quarterly profit in its history.
In contract chips, leaders TSMC (2330.TW) and UMC (2303.TW)
both posted third-quarter profits, though analysts expect
orders to weaken this quarter.
But the picture is less rosy for smaller players such as
Powerchip (5346.TWO) and Chartered Semiconductor (CSMF.SI),
saddled with billions of dollars in losses during the downturn
and still losing money.
Their lack of funds for new R&D, coupled with broader
financial pressures, could make many candidates for acquisition
or eventual closure.
Doug Young (doug.young@thomsonreuters.com)
Telecoms - [RTRS-LEN-E-NEWS-TEL-ASIA]
Electronics - [RTRS-LEN-E-NEWS-ELC-ASIA]
Chips - [RTRS-LEN-E-NEWS-ELI-ASIA] > Samsung,
Panasonic signal tech sector upturn [ID:nSP459435] > TSMC
posts biggest profit in a year [ID:nTP163864] >
India's Bharti sees price war damaging growth [ID:nDEL300502]
(Editing by Ian Geoghegan)
