Monday Newsline:China Manufacturing;Sinopec

The HSBC China PMI Index came in even lower in March than it did in February,falling to 48.1 from 48.5.Below 50 means the manufacturing sector is contracting.Still,this poor number raised expectations that China would enact stimulus measures,sending the MSCI Asia Pacific index up 0.85% in Monday trading.*
Sinopec's Q4 net profit fell 35% year on year as improved refining profits lost out to lower upstream earnings.The 13.8 billion yuan profit was way lower than the 20.5 billion consensus forecast.
Profits were squeezed by a drop in oil exploration and production profit partly caused by lower world oil prices.Lower prices also hurt its chemical division,as did an increase in domestic production capacity.
To improve its performance,the oil and gas major will sell up to 30% of its marketing and distribution division,which is a vast network of some 3,000 petrol stations,plus convenience stores,pipelines and storage facilities.The sale could raise up to 20 billion.It will also cut capex by 4.2%.*
South Korea's KOSPI index surged 10.61%,bolstered by shipbuilding stocks rising on the day.Daewoo Shipbuilding soared 4.61%,while Hyundai Heavy Industries added 1.98%.*
Sinopec Shanghai Petrochemical Co Ltd(SHI),Daewoo Shipbuilding&Marine(DWOTF:OTC US),Hyundai Heavy Industries Co Ltd(HYHZF:OTC US)

Asia This Day:Chinese Oil Majors Strong;Julia Gillard's GDP Vision

Sinopec Corporation beat earnings estimates on its refining business.The company,an integrated oil and petrochemical firm,is China's largest refiner and had Q3 net income of 2.93 billion dollars,versus an estimate of 2.27 billion.
Petrochemical prices rebounded,and demand for petrochemicals will continue to rise.
Sinopec's profit growth was up 12.4%.It was upgraded to outperform at Sanford C Bernstein.
CNOOC Ltd.,China's largest oil and gas producer,had much stronger product growth in Q3 and this will continue into 2013.The Canadian government must make a decision on the CNOOC-Nexen merger by mid-November.We think it's gonna go through,said  Bernstein's Neil Beveridge.It's in Canada's interest to have good business ties with China.We like both CNOOC and Sinopec.
Nexen,Inc. is an oil and gas exploration and  production firm with operations in the UK North Sea;offshore West Africa;the Gulf of Mexico;and Western Canada.
Australia is aiming to raise its GDP per capita to 73,000 dollars per person and reach the global top ten of that measure.It is currently number 13 on the GDP per capita list.
Austarlia wants to boost the Asian component of its GDP to one-third.It would like to give every student the chance to learn an Asian language.It's a vision,the increasingly popular Prime Minister Julia Gillard said;it's gonna take some time to deliver.
Sinopec Corporation(SNP),CNOOC Ltd.(CEO),iShares MSCI Australia Index Fund(EWA)

China Continues Energy Shopping Spree

The Shanghai market reopened this morning,Monday,after the Golden Week holiday.Taiwan's market was closed for National Day,however,and Japan's markets were shuttered for Sports Day.
Sinopec,China's largest oil refiner,is purchasing Canadian firm Daylight Energy for 2.2 billion dollars Canadian.Daylight owns extensive shale gas properties,as well as oil sands and conventional oil prospects.
It is the latest in a series of Chinese acquisitions of Canadian energy assets.Sinopec also bought a 45% stake in Syncrude for 4.5 billion,while another Chinese energy firm,Cnooc,is purchasing OPTI Canada for 2.1 billion.China is aggressively seeking energy assets globally with its huge foreign currency reserves.
Canada is America's biggest oil and refined oil supplier-a fact many Americans may be ignorant of.
Over the Golden Week holiday,air travel in China fell to 8.2%,but retail sales rose 18%.China has cut fuel prices for the first time this year to rein in inflation.
In Beijing on Monday,it was 64F under clear skies.The wind was NE at 4 mph,and the humidity was 45%.
Taiwan's Yani Tseng,the world number one in the Rolex rankings,won the LPGA HanaBank Championship at the Ocean Course of the Sky 72 Golf Club in Incheon,South Korea on Sunday.Korean Na Yeon Choi,the HanaBank winner from 2009-10,came in second.
Sinopec(SHI),Daylight Energy(TSX:DAY)

Sinopec Excels in First Half

Asian shares opened mostly higher on Monday,as Federal Reserve Chairman Ben Bernanke's recent remarks on the U.S. economy and the Fed's capacity for aiding it were viewed favorably.China's Sinopec,Asia's biggest oil refiner,posted record profits for the first half of 2011.This was even though they aren't allowed by the government to pass rising costs on to consumers,showing the company's great skill in managing expenses.
China has raised reserve requirements on banks again.The expansion of controls may drain a further 140 billion dollars from the banking system over the next six months.This is on top of previous measures that lifted reserve requirements to a record 21.5% as China attempts to rein in inflation and its trade surplus.
Cathay Pacific has accepted a new 777 airliner from Boeing and has 35 more of them on order.The Hong Kong airline is upgrading its business class with private alcoves that offer more table space and a flat bed for side-sleepers.Cathay says it has gotten fantastic feedback on the new accommodations.
South Korean golfers Hee-Won Han,Na Yeon Choi and Jiyai Shin shared sixth place with Korean American Jenny Shin at the CN Canadian Women's Open in Mirabel,Quebec.American Brittany Lincicome won the event.Jessica Shepley was recognised for lowest score by a Canadian,finishing at one under par.
In Shanghai Monday morning,it was 86F under mostly cloudy skies.Winds were E at 9 mph,and the humidity was 66%.
Boeing(BA),Sinopec(SHI)

Asia This Day

Today,Monday,marks the one month anniversary of the Japan earthquake.Toyota Motor plants there have been closed since then,plagued by parts shortages.The company hopes to reopen all 18 plants by next Monday.
Japanese automaker stocks were down about 2% in early Monday trading,pressured by a Citigroup downgrade of them on lost earnings due to the quake.The broadly based Topix index was down 0.14 on this concern,and the Nikkei 225 was off 0.48.Chinese and Australia/New Zealand markets opened higher.
BHP Billiton is reportedly interested in acquiring Woodside Petroleum for around 50 billion dollars,with an initial purchase of 24 billion.Woodside has liquified natural gas assets on Australia's North West Shelf.
In Chinese energy news,Fu Chengyu is moving from energy majors CNOOC to Sinopec.At CNOOC,Mr.Fu oversaw considerable growth.He has much experience in oil and gas exploration,which is a deficiency at Sinopec,as well as in mergers and acquisitions.
Hong Kong awoke to clear conditions and temperatures in the upper 70s F.
CNOOC Ltd.(CEO),Sinopec(SHI),BHP Billiton Ltd.(BHP)

Asia This Day

Asian stocks were mixed Monday morning,with the Japanese Nikkei down 31.07 and the Australian ASX dropping 5.40,while China showed some strength as both the Hong Kong and Shanghai indexes were up modestly.
In Japan,repair work on the Fukushima reactors is still delayed because of a radioactive water leak;it can't resume until the leak is fixed,an official said.Two workers have substantial skin contamination from standing in the water.
Power shortages continue in Japan,and automakers there may cooperate,staggering production schedules to deal with the shortfall.
Sinopec,the Chinese oil and petrochemical major,reported its 2010 earnings.It posted record earnings,with net income up 14% for 2010 and 31% for Q4.Sinopec will now cut costs and expand overseas activity and investments.
Other Chinese energy firms exceeded Sinopec's results,with Cnooc reporting profits up 85% and Petrochina's 35% higher.They are less exposed to crude oil price hikes than Sinopec,which is more heavily into refining and hence restricted by government price controls on fuel.
Sinopec(SNP),Cnooc(CEO),Petrochina(PTR)
Update:Hong Kong shares later took a tumble,falling 0.72%.Only Shanghai remained in the green.