The World Bank trimmed its growth forecast for developing East Asian economies to 6.9% from an outlook of 7.1% in April. The bank said China, the region's biggest economy, growth will ease slightly to 7.4% this year and 7.2% in 2015, as the government seeks to put the economy on a more sustainable path with policies addressing financial vulnerabilities and structural constraints. Excluding China, growth in developing countries in the region is expected to bottom out at 4.8% this year, before rising to 5.3% in 2015, as exports rise and domestic economic reforms advance in the large Southeast Asian economies.
The World Bank's 2014 revised its forecast for Malaysia to 5.7%, up from 4.9% in April, because of robust exports in the first half of the year. Cambodia is expected to grow at 7.2% in 2014, boosted by rising garment exports. Thailand is also expected to benefit from the global recovery, given its strong integration into global value chains - if the respite in political unrest is sustained. But in Indonesia, which still relies on exporting commodities, growth will drop to 5.2% this year from 5.8% in 2013, constrained by falling commodity prices, lower-than-expected government consumption and slower credit expansion.
Among regional bourses
Aussie shares fall
Australian share market finished an eventful day slightly lower, with gains by the big miners offset by falls from the banks, retailers and health care companies. The benchmark S&P/ASX 200 Index declined 0.16% to 5284.20 and the broader All Ordinaries Index slid 0.15% to 5284.80. Turnover was relatively healthy with 1.79 billion shares worth of A$5.25 billion traded today.
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Shares of banks and financial companies extended fall amid worries about raising US interest rates and the looming final report from the government's Financial System Inquiry. Commonwealth Bank of Australia fell 0.5% to A$75.77, National Australia Bank 1% to A$32.38, and ANZ Banking Group 0.13% to A$31.51. Westpac Banking Corp closed steady at A$32.42
Materials and resources stocks rebounded, led by Rio Tinto with gain of 4.3% to A$60.07 after the company confirmed that it had been approached, and rejected, a takeover offer from Swiss mining giant Glencore in August. Resources giant BHP Billiton gained 1.7% to A$33.24. Iron ore miner Fortescue Metals Group rose 4.2% to A$3.44.
Australia's biggest gold producer, Newcrest Mining, gained 0.4% to A$10, and Evolution Mining was up 8.3% to A$0.72, as the precious metal's turned higher, recovering from their lowest levels of the year, as the US dollar eased against major currencies. Gold for December delivery rose 1.2% to settle at $1207.30 a troy ounce on the Comex division of the New York Mercantile Exchange on Monday.
Stronger yen weighs on Tokyo shares
Japanese share market finished the session down on Tuesday, 07 October 2014, as profit taking across the board after yen appreciated to mid-104 level against greenback. Most of the sectoral blue chips declined, with currency sensitive exporters being major losers. The Nikkei 225 index lost 0.67%, or 107.12 points, to 15783.83, while the broader Topix index of all first-section shares fell 0.43%, or 5.51 points, to 1209.89.
The drop in Tokyo share market came as yen appreciated against the greenback after comments by Japanese Prime Minister Shinzo Abe about the debilitating effects of a weak yen on households and small and mid-sized companies. The greenback fetched 108.48 yen, well down from the day's high of 109.22 yen and 108.75 yen in New York.
Sentiments also hit as the Bank of Japan held off launching new monetary easing measures despite its less-optimistic tone on the economy. The Bank of Japan kept its pledge to increase the monetary base at an annual pace of 60 trillion yen to 70 trillion yen.
Shares of Exporters and other currency-sensitive companies declined the most in Tokyo market. Industrial robot maker Fanuc Corp slipped 1.1% to 19230 yen, while chip testing equipment maker Advantest Corp fell 1.4% to 1368 yen. Air-conditioner maker Daikin Industries fell 1.9% to 6471 yen and auto maker Fuji Heavy Industries lost 1.4% to 3476 yen. Sony Corp., which gets 72% of its sales abroad, dropped 1.2% to 1913 yen. Canon Inc, the world's biggest camera maker, lost 0.5% to 3503 yen. Toyota Motor Corp, the world's biggest automaker, slid 0.3% to 6366 yen. Honda Motor Co, a carmaker that gets 84% of sales abroad, dropped 0.4% to 3591 yen.
Tosei Corp., a property developer, slumped 7.4% to 653 yen, after the company announced its nine-month net income fell 4.6% to 1.83 billion yen, while operating profit lost 1% on the year to 3.57 billion yen.
Fujifilm Holdings added 2.7% to 3595 yen after the company said the governments of France and Guinea are considering trials of its antiviral drug Favipiravir following its apparent successes in treating patients afflicted with the Ebola virus.
Hang Seng jumps 0.46%
Hong Kong equity market advanced for third consecutive session on Tuesday, 07 October 2014, as pro-democracy activists scaled down protests and upbeat U.S. jobs data provided some relief over the outlook for the global economy. The benchmark Hang Seng Index advanced 0.46% to 23422.52.
Shares in the city's market opened weaker today, following drop in the US stock market overnight. But, the market recouped early losses gradually by midday and finishing the trade higher as city officials and protesters agreed to formal talks. Protests in Hong Kong showed signs of winding down as pro-democracy demonstrators and the government agreed to start formal talks. Both sides said they hope to start formal talks before Oct. 12.
Shares of Lenovo (00992) registered two block trade in the afternoon session. It rose 2.2% to HK$12.04, and became the top blue-chip gainer. CLP (00002) also gained 2.2% to HK$64.05. CR Land (01109) slipped 1.3% to HK$17, making itself the worse blue-chip performer.
CLSA recommended HKT-SS (06823) and PCCW (00008). Both stocks put on 2.7% and 2.4% to HK$9.85 and HK$5.06 respectively.
Sensex falls on weak Asian cues
Indian stock market declined as funds and investors indulged in trimming positions amid weak cues from other Asian markets. The Sensex was provisionally down 1.1%, or 296 points, at 26272, while the National Stock Exchange's broader barometer 50-share Nifty was down 1.17%, or 93.15 points, at 7852.40 points. Stock exchanges remained closed on October 2, 3 and 6 for Gandhi Jayanti, Dussehra and Id-ul-Zuha, respectively.
HOV Services rose 10% after its board approved selling entire investment in SourceHOV through its US based arm HOVS Llc to promoters. The stock has gained 78% over the last five sessions.
DQ Entertainment International rose 16% after the company said it has signed a content acquisition deal of multiple properties produced by DQE for distribution in Greater China, which includes mainland China, Hong Kong and Macau.
Tata Communications rose 2.9% after it signed an interconnection agreement with Australian telecommunications company Telstra. The network-to-network Interconnection (NNI) will use Tata Communications' 116 points of presence (PoPs), extending Telstra's reach to several smaller Indian cities.
Mphasis fell 4.4% amid concerns over revenues that the company gets from Hewlett-Packard. Separately, Macquarie downgraded the stock to underperform from outperform.
Ballarpur Industries was up 7.1% after the company said International Finance Corp. (IFC) has agreed to invest $100 million in its subsidiary Bilt Paper B.V.
Elsewhere in the Asia Pacific region-- Taiwan's Taiex index fell 0.6% to 9040.81. South Korea's KOSPI index rose 0.23% to 1972.91. Indonesia's Jakarta Composite index added 0.65% to 5032.84. New Zealand's NZX50 shed 0.1% to 5235.71. Singapore's Straits Times index fell 0.28% at 3243.99. Markets in mainland China and Malaysia were closed for a holiday.
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