China Railway Construction was also awarded two tenders with a total cost of Rmb37.7 billion.

China infrastructure stocks climbed on the news. China Railway soared 2.1% to HK$11.60 and China Communications Construction Limited spiked 0.7% to HK$22.90.

The Standard, online publication, reported today that China National Aviation Corporation said yesterday it will offer not less than HK$5 per share for the 24% equity in China Eastern in a counterbid to Singapore Airlines offer if the latter fails to win shareholders approval at tomorrow’s extraordinary general meeting.

CNAC’s counter offer is 31.58% higher than that from Singapore Airlines’ and values the takeover bid at HK$9.43 billion.


Mirae Asset Global Investment Hong Kong analyst Patrick Pong Kwok-hung said today that this year’s outlook for banks in Hong Kong is positive as the net interest margin is likely to remain at last year’s level at 1.85%.

Also the prime HIBOR rate, used by small and medium sized banks, is expected to fluctuate between 3.2% and 3.3%.

HSBC plunged 1.8% to HK$127.80.

Crude oil for February delivery fell 0.8% to $97.11. Oil producer PetroChina Co Limited declined 2.3 % to HK$13.86.

China National Materials Co Limited gained after the company said it would build three new production lines, boosting annual production in Guangdong province to six million tons. China National Materials stock closed up 5.3% to HK$11.88.


Asian Markets Round up

In Tokyo Nikkei 225 Index closed lower 190.86 or 1.30% to 14,500.55, in Hong Kong Hang Seng index closed decreased 340.20 or 1.24% to 27,179.49, in Australia ASX 200 closed lower 145.00 or 2.30% to close 6,161.60.

In South Korea Kospi Index close at decreased 32.76 or 1.76% to close at 1,831.14, in Thailand SET index closed lower 13.40 or 1.63% to 808.31, and Indonesia JSE Index increased 11.22 or 0.41% to 2,776.41. Sensex index in India closed higher 125.76 or 0.61% to 20,812.65.


5:00AM New York, 7:00PM Tokyo - Tokyo plunged 1.3% on concerns of U.S. recession.

Stocks in Japan fell on worries that the U.S. economy will enter into a recession.

In Tokyo trading Nikkei 225 dropped 1.3% or 190.86 to 14,500.55, while the broader Topix Index slumped 19.20 to 1,392.71, below 1,400 for the first time in two years.

In the first section of the Tokyo Stock Exchange 9.8 billion shares worth 1.1 trillion yen were traded and in the second section 227 million shares valued at 4.1 billion yen changed hands.

Of the Nikkei 225 stocks 41 gained, 172 declined, and 12 were unchanged.

Sumitomo Metal Mining led decliners with a fall of 6.62%, followed by Nippon Sheet Glass losing 6.15% after commodity prices plunged on concern that a recession in the U.S. will affect demand.