Merger News Update

Commodities stock Chalco plunged 7% after BHP Billiton upped its bid for Rio Tinto International to $147.4 billion. Chinalco, the parent of Chalco, last week allied with Alcoa to purchase a 9% stake in Rio Tinto.

Gainers and Losers


Financial stocks fell in today’s trading on lingering sub-prime market turbulence. The International Commercial Bank of China declined 6.35% to HK$4.97, China Construction Bank fell 6.74% to HK$5.67, and HSBC shed 4.12% to HK$113.90.

Export-related companies also fell after a report in the U.S. showed that business activity in the non-manufacturing sector fell in January, sparking the fears of recession in the U.S.

Li & Fung, the largest apparel maker, declined 7.22% to HK$27.00 and retailer Esprit, which is reliant on the European market, fell 6.91%.



5:00AM New York, 7:00PM Tokyo – Stocks in Japan fell after the U.S. recession fears intensified on a latest read on the service sector showed a decline in activities.

Stock indexes in Japan declined sharply after the sell-off in the U.S. markets and a weakness in European trading.

In Tokyo trading Nikkei 225 fell 4.7% or 646.26 to 13,099.24, and the broader Topix Index slipped 4.2% or 57.07 to 1,298.41.

Market Sentiment

In the first section of the Tokyo Stock Exchange 11.2 billion shares worth 1.2 trillion yen were traded and in the second section 319 million shares valued at 3.8 billion yen changed hands.

Of the Nikkei 225 stocks 7 rose, 217 declined, and 1 was unchanged. Clarion Co. Limited led gainers with a rise of 6.19%.

The U.S. Institute for Supply Management reported yesterday in its January 2008 Non-Manufacturing Report on Business that business activity in the non-manufacturing sector contracted in January for the first time in 58 months.

According to the index, the New Orders Index at 43.5% fell to the lowest since October 2001 and Employment Index declined the most since February 2002 at 43.9%.

The Employment Index fell to 70.7% indicating a decline in price increases in January.

Of the companies surveyed, only three reported growth while 14 recorded contraction.

“Members'' comments in January indicate that weakness in the economy coupled with increased costs have negatively affected their business. Members have also indicated that they are experiencing inflationary pressures,” as highlighted in the report.