6:00AM New York, 6:00PM Hong- Chinese Yuan rises to record at 7.1846 against the U.S. dollar.

Stocks in Hong Kong declined on profit taking before the markets close for the Lunar New Year holidays and concern on the deterioration of the global economic outlook. Shipping lines, realty stocks and financial institutions fell as a result.

In Hong Kong trading the Hang Seng Index dropped 0.89% or 223.38 to 24,808.70, and the China Enterprises index of H-shares slumped 0.57% to 14,040.68.

Daily turnover on main-board was HK$85.03 billion compared to HK$117.6 billion yesterday.

Hong Kong trading will close after the morning session tomorrow and will be opened again on Monday next week.

The China People’s Daily online edition reported that the International Commercial Bank of China has been given regulatory approval to acquire 20% equity in South African bank Standard Bank for $5.46 billion.

Shareholders from both financial institutions have approved the transaction, and the South Africa Registrar of Banks and the Johannesburg Securities Exchange have also sanctioned the deal.

Separately, the online publication reported that a Lishui municipal intermediate people’s court in the eastern Zhejiang Province yesterday jailed former securities director of Shanghai listed Hangxiao Steel Structure Chen Yuxing and slapped two accomplices with a fine of Rmb 80.74 million for insider trading after recovering illegal gains of Rmb 40.37 million worth of illegal gains.

Financial stocks declined on profit taking. China Life fell 1.09 % to HK$31.90 and China Construction Bank shed 1.94% to HK$6.08.

Shipping lines fell on speculation the global economic growth is slowing. China Shipping Development lost 5.33% to HK$21.30 and China Shipping Container Lines slipped 4.27% at HK$3.14.

Realty and mining stocks traded lower ahead of the Lunar New Year holidays. New World Development declined 5.34% to HK$22.15 and Cheung Kong slid 2.07% to HK$123.30.

Also of Jiangxi Copper Co Ltd edged down 2.76 % to HK$15.48.

UBS reported yesterday that the telecommunications were unlikely to be highly profitable in the short-term as a restructure in the industry was likely to delay the launch of third generation mobile services. China Telecom dropped 0.5% and China Netcom shed 3.35% as a result.

Retailer Li & Fung, which relies on North America for its products, shed 5.21% at HK$29.10 on the economic worries in the U.S.

Sinopec gained 2.13% to HK$9.59 after crude oil for March delivery climbed down 0.9% to $89.60 per barrel.


5:00AM New York, 7:00PM Tokyo – Weaker than expected corporate earnings dragged market index lower. Toyota, Sanyo Electric, Yamaha Motor, and Mitsubishi Estates reported earnings.


Stocks in Japan traded in negative territory on weaker corporate results announced to the market.