What To Buy in Asia;Ford's China Position

Several financial markets were closed for the Easter Monday holiday,including Australia,New Zealand and Hong Kong.The MSCI Asia Pacific index declined 0.10% in early trading,while US stock futures rose.*
Japan's trade deficit widened more than expected as exports slowed.There was a 1.5% rise in exports versus an estimate of 1.8%.Imports climbed 18%.The figures may complicate Prime Minister Shinzo Abe's plan to reflate the economy.*
We're buying businesses with strong net cash,said Maquarrie Group's Sam LeCornu.Some sectors in China are doing quite well,with March retail sales up 12.2%.We had a massive overweighting in health care,but have taken a lot off the table in the past six months.
China and Korea are standout buys.Chinese stocks are undervalued.We completely avoid property developers and banks.If we can't project the downside,we just don't invest.It's too risky.We have nine mainland midcaps in our New Stars portfolio.There's a huge discount.We're in two Citic affiliates.
We really like Korea.It's very cheap.We're looking at companies with net cash.We like Hotel Shilla with its duty free shopping and good airport concession chances.Chinese visitor numbers are up 37% in Korea.A number of Korea stocks are trading well below their intrinsic value.*
Ford Motor is the fastest growing foreign automaker in China.I think it's gonna continue,said CEO Alan Mulally at the Beijing Auto Show.We are bringing the entire Ford Win Plan with all our vehicles available.We think our preferred status will continue.Our sales are continuing to increase.It sure is nice to see the Ford preferred in the sales decision.
I think these new Lincolns are gonna be very well received here.We'll bring them here first,then make and design them here as sales pick up,Mr.Mulally explained.*
Petronas AMG Mercedes continued its dominance of the Formula One series as Great Britain's Lewis Hamilton secured his third straight victory at the Chinese Grand Prix Sunday.His teammate Nico Rosberg of Germany was second,and Spain's Fernando Alonso got Ferarri to its first podium of the season with his third place finish.The series continues in Barcelona in three weeks' time.

Japan's Recovery Slows;Congress Party Setback

We have enacted industrial competitiveness,said Japanese Prime Minister Shinzo Abe.We have decided to reduce the corporate tax by 2.4%.There is no end to Abenomics.*
At the same time,in April 2014 Japan's consumer tax will rise from 5% to 8%.*
Japan's GDP growth was just 1.1% annualised in Q3,revised down from 1.9%.The two main factors were flat business spending and a smaller contribution from inventories,according to the Cabinet Office.*
The wealth effect that Japan expected is not coming through in either Main Street or real property prices,said Andrew Economos,strategist at JP Morgan Asset Management.You need productivity gains and sales.The sales tax basically squelches consumption.They are basically on the right track,but they need to stop making wrong decisions,Mr.Economos observed.*
India's Nifty Fifty index was up in early Monday trading on the opposition BJP's winning elections in four states,as well as becoming the single largest party in Delhi and humiliating the ruling Congress Party.Congress' Vice President Rahul Gandhi,heir of the Gandhi political dynasty,is seen by some as an example of failed leadership and low confidence even as the BJP's leader,Chief Minister of Gujarat state Narendra Modi scored a big win in the elections.National elections will occur within five months.
We will introspect seriously and take all necessary actions to rectify our mistakes and the way we function,said Congress' President Sonia Gandhi,who is Rahul's mother.*
Through these elections,the people have delivered a message,Rahul Gandhi said.That message has been taken by me and our party,not just with our minds,but in our hearts.The Congress party has the ability to transform itself,to stand up to the expectations of this country,and the Congress Party is going to do that,the presumptive prime ministerial candidate promised.*
The MSCI Asia Pacific index rose 0.71% Monday morning on a strong US jobs report and Chinese data.*
In golf,Thailand's Pornanung Phatlum won the Ladies European Tour's Omega Dubai Ladies Masters on Sunday in the UAE.It was her second career victory on the LET.American Stacy Lewis was second,and Spain's Carlota Ciganda third.

Asia This Day:China,Sri Lanka,Australia

Overall,there is still some risk appetite across the world,said David Gaud,Senior Portfolio Manager at Edmond de Rothschild Asset Management.Europe could become a second growth driver,probably going from -0.6% growth to 2%.That would help China.China is extremely cheap currently.The earnings growth has been revised up from 8-9% to 12-13%.There is a real case for investing in China by the end of this year.*Sri Lanka is opening a 500 million dollar container terminal built by China at Port Colombo today,It is the largest investment ever in the country's harbours.*China's official July Services PMI was at 54.1,up from 53.9 in June,and above the estimate.A reading above 50 signifies growth.The services sector represents 45% of Chinese GDP.*Australia's election is to be held September 7.Polls have the Labour government slightly behind the opposition coalition,although Labour leader Kevin Rudd is preferred as Prime Minister over opposition leader Tony Abbott.*Toyota Motors will return 30% of its 37 billion dollar cash hoard to shareholders in the form of dividends.It will also increase R&D and CapEx spending,heeding the call of Prime Minister Shinzo Abe.*Beijing is planning to raze a village just outside the capital in order to build a new airport.*The Edmond de Rothschild Group offers private banking;asset management;private equity;institutional and fund services;and corporate finance advisory services from its offices worldwide.The group draws on the heritage of its founding family,bankers to royal houses,who "walked with kings,while never losing the common touch,"as the saying goes.*Toyota Motor Corporation(TM)

Asia This Day:Japan's New Prime Minister;Has China Turned The Corner

Shinzo Abe(pronounced ah-bay) has been elected the new Prime Minister of Japan.His LDP Party has a 61% majority in Parliament;with a partner,the LDP will have a 68% majority.Mr.Abe had served as Prime Minister three years ago.
The question now is how they use that majority,said Mohammed Apabhai of Citi Global Markets Asia.The priority at the moment is actually controlling deflation and getting growth back on track.Reflation trades include insurers,banks and real estate.
Abe will restore nuclear power to provide affordable energy to the Japanese economy.Only two of Japan's nuclear reactors are currently on line,down to public outrage after last year's tsunami and nuclear accident.Japan's debt to GDP ratio is 237%,the highest in the world.
It's undeniable that China has really turned the corner.There's a lot of scepticism about that from clients internationally.The upside in the rest of Asia is actually a lot higher.
The Chinese Politburo will keep policy stable with adjustments as needed,accepting slower growth.It will fully deepen reforms and firmly promote opening up,the Xinhua news agency reported.
China has submitted documentation on its territorial dispute with Japan in the South China Sea to the United Nations.
Indian investors are awaiting the Royal Bank of India interest rate decision.The Nifty Fifty futures index was down 0.08%.
Australia is in talks with Sri Lanka to curb people smuggling.
The Nikkei index was up a strong 1.54% on Abe's election,while the MSCI Asia Pacific index was up by only 0.04% in early Monday trading.
Citigroup(C)