Market Gazer Hong Kong - Japan - Germany - UK - North America

market review : Global

China and Hong Kong were closed on Friday.
Hong Kong will return on Monday, while
Shares advanced in Japan
China will re-open next week.
as Nikkei 225 ended up
34.88 points or 0.37% at
China manufacturing PMI rose from 51.7 to
9,404.23 on Friday. The
53.8 in September. The PMI released by the
gains came partly from
logistics federation and statistics bureau beat
the improving data such
the consensus reading of 52.5. The better-
as household spending, inflation, and also
than-expected data further eased the concern
employment data. Real-estate shares also
over the possibility that China will entering a
boosted by the aftermath of Thursday’s jump
slowdown period, triggered by the
in housing starts, whereas PM Naoto Kan
government’s efforts to cool down the red-
warned that the government might sell yen
hot economic growth.
again if needed.

Elsewhere, Sinopec planned

Household spending rose 1.7% in August from
to buy new shares of
the same period a year ago, more than the
Repsol’s Brazilian unit Repsol
consensus rise of 1.4%, and above July’s gains
YPF SA worth $7.1 billion.
of 1.1%.
The increase in the stake will
During the same period, national CPI fell 0.9% boost Sinopec’s holdings to 40% and will be
the basis of a joint venture between the two
(y/y) in August, at the same pace as July.
companies worth a total of $17.8 billion.
Excluding fresh food, prices fell 1%, and
stripping food and energy prices, CPI fell 1.5%.
Mitsubishi Estate reversed Thursday’s plunge
In September, Tokyo CPI declined 0.6% in
and gained 3.24% to end at ¥1,402 following
September, less than expected fall of 0.9%.
the data which showed housing starts gained
Excluding fresh food, September saw a fall of
20.5% in August from 4.3% in July.
1% in prices while excluding both food and
energy Tokyo CPI declined 1.3%.
Among top gainers in Japan, Nissan Motor
rose 2.06% to 744 and Canon advanced 1.93%
Employment outlook improved in Japan as
to ¥3,970. Sony Corp fell 1.67% to ¥2,538,
shown by the jobless rate which fell to 5.1% in
Nippon Steel Corp. declined 1.41% and Daikin
August from 5.2%. Similarly, job-to-applicant
ratio increased from 0.53 in July to 0.54. Industries shed 0.8% to ¥3,115.

German DAX fell 17.68 points or 0.26% to

In addition, vehicle sales were down 4.1%
year-on-year in September, after jumping
46.7% in prior period.
Prime Minister Naoto Kan delivered his
warning that the government would sell more
yen to prevent the currency to strengthen too
much to derail economic growth in Japan
which relies heavily on exports.
01 October 2010
6,211.34 while FTSE 100 index rose 44.28
points to 5,592.90 or 0.8%, thanks to rising
commodity-linked shares after China
manufacturing PMI showed a better-than-
expected reading. Dow Jones Industrial
Average also gained, starting a October with a
0.39% gains or 41.63 points to finish the day
at 10,829.68. Nasdaq Composite was at
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 Market Gazer Hong Kong - Japan - Germany - UK - North America
2,370.75 at the closing, up 0.09%, and S&P
500 was up 5.04 points or 0.44% at 1,146.24.
The rise in US shares
was linked to better
than expected
University of
Michigan confidence
index in September which showed a rise to
68.2 from 66.6, above the consensus of a rise
to 67. Construction spending also beat the
market’s expectation, rising 0.4% in August
after it fell 1.4% in July. The market had
expected a fall of 0.4% in spending. The
better-than-expected data countered the
weak reading in ISM manufacturing which fell
to 54.4 in September, worse than the
consensus fall to 54.5 from 56.3.
European data also showed weakening
manufacturing activities. German PMI for
manufacturing fell to 55.1 from 55.3, lower
than the consensus of 55l.3; UK PMI also fell
from 54.3 to 53.4, lower than the expected
53.8. Eurozone PMI however, inched higher to
53.7 from 53.6.
BMW is withdrawing its
BMW & Rolls-Royce-
branded cars due to
power-brake fault. The
total number of recalls
would be around 350,800
units and will include the 5, 6, and 7 series
models and Rolls-Royce cars produced
between 2002 and 2010. From the 350,800
units to be recalled, 198,000 units are from
the US. The voluntary recall will later require
repairs which would take probably just two
hours to complete, according to the company.
The German automaker plunged 4.16% to end
at €49.30 along with Volkswagen which ended
down 2.81% at €78.56 despite the latter said
01 October 2010
that US sales increased by 14.9% in
September (YoY).
Allianz SE’s document automation and client
correspondence efforts are expected to slash
operational costs by €250 million per year
over four years through 2011. Allianz edged
higher at €83.10, up 0.24%.
The appointment of Leo Apotheker as the
new H-P boss has led to a speculation in the
market that H-P could aim collaboration
between SAP and H-P. SAP – Apotheker’s
former employer – could even be acquired by
H-P although analysts said that it would not
be that easy to see a merge between the two
since SAP itself is a strong company. However,
as mergers between software and hardware
firms are quite popular, surely this possibility
cannot be ruled out. H-P shares tumbled
3.09% on Friday to $40.77 as Apotheker does
not seem to be strongly favored by the
market to become the new CEO of H-P.
BP Plc. on Friday
announced that it cost the
company $11.2 billion to
response to the oil spill
crisis at the Gulf of Mexico which had been
dealt with recently. BP’s shares were up
2.97% to 440.50 pence, buoyed by the initial
moves taken by its new CEO Robert Dudley to
restructure the company by emphasizing
more on safety.
HSBC Plc has been listed at Goldman’s
CONVICTION BUY list, upgraded from BUY.
HSBC was up 1.33% to 653.60 pence.
Ford Motor inched 0.16% higher to $12.26 as
the company reported an increase of sales in
September to 160,873 units, a 41% jump.
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Wal-Mart and Humana will

join hands in a prescription
drug plan to be sold in US.
On Friday, the plan has
started its marketing program in Medicare. It
will charge a monthly fee of $14.80 and it will
be applied at the start of 2011. Wal-Mart
slipped 0.3% to $53.36.
McDonald’s ‘Mini-Med’ plans have been
investigated by the Senate on whether the
plans are sufficient enough for McDonald’s
employees. McDonald’s shares however,
advanced 0.55% to $74.92.
Microsoft sued Motorola
on patent-infringement
regarding its Android-
powered smartphones.
While Motorola responded by saying that the
company has not received the copies of the
lawsuit, Google – the owner of Android
software – stated that the company will stand
behind Android and Motorola and other
partners which have helped developed the
operating system. Previously, Oracle also sued
Google over the same patent-infringement
lawsuit on the same Android OS. Microsoft
ended down 0.45% at $24.38, Google ended
at $525.62, down 0.03%, while Motorola
gained 0.35% to $8.56.
Halliburton Co. rose 0.79% to $33.33 as Argus
upgraded the company’s shares to BUY from
HOLD with price target set at $40 on the back
of good performance in 3Q. Litigation risk
from the oil spill at the Gulf of Mexico was
also considered as low.
Amazon shed 2.13% after
McAdams Wright
downgraded it to HOLD from
BUY while Raymond James set
it at MARKET PERFORM. The
move from McAdams was due to the reduced
attractiveness of the share’s risk/reward
although the shares remain favorable with
price target set at $160. Raymond James’s
assessment was based on the company’s
strong fundamentals.
Disclaimer: This report is provided for information purposes
only. It is not an offer to sell or to buy any securities. This
report has been prepared based on sources believed to be
reliable, but there is no assurance or guarantee regarding its
completeness & and accuracy. The author accepts no
responsibility or liability arising from any use of the report.

More on Google, CNET reported that

NetApplications research showed that
Google’s Chrome internet browser gained an
additional 0.5% of arket share from 7.5% to
8% in August. Microsoft IE’s share fell from
60.4% to 59.7%. On another occasion, Google
said that it allows developers to create
Android applications and sell them on Android
Market. The number of countries open to this
program has been increased to 29 countries.
Also, Google was set at OUTPERFORM by
Raymond James with target at $640.

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01 October 2010 Page 3