Asian Shares Higher;Tony Abbott;Malaysian Grand Prix

Asian markets ended the first quarter confidently Monday,with the MSCI Asia-Pacific index up 0.50%.Markets were encouraged by China Construction Bank's better than expected performance on wider lending margins,and consumer shares were strongest.The Nikkei average was up even though Japan's sales tax goes up for the first time in 17 years to 8.0% on Tuesday,and US stock futures followed the positive trend.*
Australian Prime Minister Tony Abbott visited RAAF Pearce in Perth Monday morning to thank the multinational troops searching for the lost flight MH-370 and address the media.It's been tremendous to see all of the cooperation here,Mr.Abbott said.It's really heartening,and it demostrates the nations of this area can come together for the betterment of humanity.
This is an extraordinarily difficult exercise and we are working on extremely limited information.The best minds and all of the technological mastery that we have is being brought to bear here.If this mystery is solvable,we will solve it.I'm certainly not putting a time limit on it.We owe it to everyone to do whatever we reasonably can.The intensity of our search and the magnitude of our operations in increasing,not decreasing.
We're working on the best available intelligence and the best available leads.We're as good as anyone in the world at it.I think morale is high.They're tired,sure;but this is what they're trained for;this is what they live for.I am getting several updates a day on this.My office is at least in hourly contact with those who are responsible for the search.
This is a major international incident and Australia has the lead responsibility for what happens in our search zone.We here will bear the cost of the coordination center under Air Chief Marshall Angus Houston.It's an act of international citizenship on Australia's part.We are happy to be as helpful as we can,Prime Minister Tony Abbott assured the media and military personnel at RAAF Pearce Base.
The search will be coordinated from the Western Australia Crisis Centre in Perth by retired Air Chief Marshall Allan Grant "Angus" Houston,former Chief of Defence.*
In motor sport,Petronas AMG Mercedes took the top two places at the Formula One Malaysian Grand Prix near Kuala Lumpur on Sunday as drivers Lewis Hamilton of Great Britain and German Nico Rosberg finished ahead of Infiniti Red Bull's Sebastian Vettel,the defending World Champion.This follows Rosberg's win at the season opener in Melbourne two weeks ago.Meanwhile,Australian Will Power won the first race of the season in the Indycar Series,the St.Petersburg Grand Prix in Florida,while American Ryan Hunter-Reay took second and Power's teammate Helio Castroneves of Brazil came in third.

Asia This Day:China Construction Bank Reports

China Construction Bank has released its Q4 earnings report.The bank posted a net income gain of 4.8 billion dollars.Profit for the quarter was up by 25%,missing estimates.
Those were considerable earnings,but,all the same,there continues to be deep-seated concern at the country's biggest mortgage lender.China Construction Bank has the most exposure to local government lending,real estate lending and consumer debt.Any problems in those areas could well crimp future earnings at this prominent institution.
Credit quality indeed declined there,with non-performing loans increasing from 1.02% in the previous quarter to 1.09% in Q4.The financial titan cited a more severe global economic environment and domestic economic restructuring as challenges it faces in 2012.
China Construction Bank is represented in a number of exchange traded funds with a Chinese or emerging market orientation,so its performance does affect the well-being of foreign investors.
On Monday morning,Asian markets opened higher,with the MSCI Asia Pacific Index up by 0.15%.
iShares Trust FTSE/Xinhua China 25 index(FXI)

Gillard Holds On To PM Post

Australian Prime Minister Julia Gillard is unpopular with the electorate,but she still commands the loyalty of her Labour Party.Labour MPs have just given their backing for her to remain in office.
Gillard wants to get the controversial carbon tax legislation through Parliament.She has been in office since June,2010.In her favor,the Australian services industry has reported growth for the first time in four months.
According to a Bank of New Zealand survey,New Zealand business confidence has risen in September.
China's service sector Purchasing Managers Index has fallen from 59.6 in July to 57.6 in August,indicating continuing but slower growth in the sector.
Three Chinese companies are buying most of Bank of America's stake in China Construction Bank.They are joined by Singapore and Qatar sovereign wealth funds in the acquisition.
In Sydney,it was 68F on Monday under clear skies.Winds were W at 6 mph,while the humidity was 60%.

China Construction Bank Reports

Asia's stock markets were modestly up Monday morning,perhaps feeling that last week's selling was overdone.Donald Williams of Platypus Asset Management in Sydney said he thinks this will be a consolidation week.Traders will be watching the Federal Reserve's annual conference in Jackson Hole,Wyoming for signs the Fed will implement a third round of quantitative easing,supporting the markets by purchasing more bonds.
We're not looking for a major rally;it's more likely that we trade sideways.The outlook for most companies is the murkiest since 2008.It'll take another 2-3 months to figure out what's ahead.
We're just adding to existing positions.We haven't changed to being more defensive,Mr.Williams noted.
China Construction Bank reported record earnings for the first half of the year.Credit demand was strong and there was a 14.5 billion dollar increase in net income,up 31%.
South Korean golfer Na Yeon Choi lost to Sweden's Suzann Pettersen in a playoff at the Safeway Classic in Oregon.They had both finished in regulation at six under par.
In Sydney,it was 61F on Monday under partly cloudy skies.Winds were SE at 14mph,and the humidity was 59%.
iShares Trust FTSE/Xinhua China 25 index(FXI)