Asia This Day:Last Chance to Ditch Gillard;Infosys Reboots

Indonesia raised interest rates last week,flying in the face of the long-standing global trend of cutting them.
BNP Paribas is recommending purchasing Chinese oil major CNOOC shares on rising production and a projected return on equity of 17% next year.
The Federal Reserve has to communicate a complex message that seems to be getting lost in translation,said John Woods,chief Asia Pacific strategist at Citi Private Bank.The market has to understand that the tapering of bond purchases the Fed is suggesting is not the same as tightening monetary policy.
Stock market losses in recent days are more a correction than a reversal.Once summer is past,we expect the underlying fundamentals to reassert themselves,with a slightly positive outlook into the end of the year.
The Australian parliament is convening today for a final two week session before the September 14 election.A poll shows the opposition coalition leading the Labour government of Prime Minister Julia Gillard by 57 to 43%,which translates to a 30 seat advantage.It is the last opportunity for Labour to replace her,yet former Labour leader Kevin Rudd is unpopular within the party and said he isn't interested in returning to the post.
Infosys co-founder Narayana Murthy has been recalled to the executive chairmanship of the software services firm,having left the CEO post 11 years ago.He said recovery at the company will take 36 months,but they will do whatever it takes to stabilise earnings.Sales have reached a four-year low recently.
It will be painful in the short term,but Infosys will revitalise the sales force with incentives and offer flexible pricing on large contracts.
The MSCI Asia Pacific index was up 0.85% as of mid-day Monday.
Infosys Ltd(INFY),CNOOC Ltd(CEO)

Asia This Day:Dreamliner Cleared;Bangladesh's Rising Star

Boeing sighed with relief as All Nippon Airways announced it will return the iconic 787 Dreamliner to service on June 1,following a successful test flight of the revamped aircraft.Ethiopian Airlines has already done so.
Australia's revenue shortfall has widened,Prime Minister Julia Gillard said.This is in spite of the unpopular Minerals Resource Rent Tax which her government imposed,which brought in much less than projected because of falling commodities prices and miners taking deductions.
India's Nifty Fifty futures index rose Monday morning on an upbeat meteorological forecast.A normal monsoon season is expected this year,which is good news for the agricultural sector.
The MSCI Asia Pacific index was up 0.25% in early Monday trading.
Bangladesh is considered the new manufacturing hotspot in Asia as Chinese costs rise,causing companies to shift operations to the poorer nation.Bangladesh manufacturing is worth 18 billion dollars now,with textiles alone accounting for 10% of GDP.Eighty percent of exports are going to the US and the EU.
Asian officials must act early to cool down overheating economies,the IMF said.
Chinese banks are reporting record profits,but manufacturing growth has slowed to 5.3%,below expectations.The current way of growing the Chinese economy by fixed asset growth is unsustainable,said Victor Wang,Deputy Head of Hong Kong/China Research at Macquarie Group.
Macquarie Group Ltd(MQG:ASX),Boeing(BA)

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)

Dissent and Personal Protection:Gillard Rescued From Ruckus-plus an update

Concern crossed the faces of Australian security personnel as Australian Prime Minister Julia Gillard and opposition leader Tony Abbott put aside their differences when a security threat materialised in Canberra,the Australian capital,on Thursday.The politicians were gathered at an awards banquet on Australia Day,the national holiday,which marks the arrival of the first British colonists in Australia in 1788.A crowd of aboriginal rights protesters outside the affair became enraged when Mr.Abbott said things were much better for the Aborigines now,and it was time to move on from the ramshackle protest camp on the lawn of the old Parliament building nearby.That was like waving a red flag at a bull,a protest leader remarked.The activists charged the restaurant,banging on the glass windows and shouting "Shame" and "Racist."
Ms.Gillard's first concern was for Mr.Abbott's safety when she was informed the situation was deteriorating and it was time to get going.What about Mr.Abbott,she asked.We'd better get him out,too.
Ms.Gillard went over to Mr.Abbott and told him about the early exit plan.We'll pull together,she said.No problem,Mr.Abbott replied.
Police,one of them with a riot shield,formed a phalanx around the leaders as one of Ms.Gillard's body guards rushed her to the motorcade.She lost a shoe in the fracas,but was uninjured and later hosted another event at her residence,praising her personal protection detail.The protester who found her shoe said she intended to sell it.
Ms.Gillard,50,is Australia's first female Prime Minister.She formed her Labour Party government in June,2010.
Update:On Friday,the protesters burned an Australian flag in front of Parliament.A mainstream aboriginal leader said the activists do not represent the views of most Aborigines,but are a radical fringe.
Prime Minister Gillard's shoe lost in the escape to her car on Thursday was put up for sale on eBay,but the site took it down because it doesn't belong to the seller.The protesters said it will be returned to Ms.Gillard,who attended the Australian Open tennis tournament on Friday.She said she wasn't worried about the shoe,being fortunate enough to own other pairs of shoes.
iShares MSCI Australia Index Fund(EWA)

BHP Shares Rise On Gillard Policy Win

Shares of natural resource firm BHP Billiton rose Monday morning on news that the Australian Labour Party is lifting its ban on the export of uranium to India.Prime Minister Julia Gillard said the move will help the Australian economy by tapping into India's demand for energy.Her critics pointed out that India hasn't yet signed the nuclear non-proliferation treaty.
Japanese shares also rose on optimism that the Euro debt crisis is being seriously addressed.Jesper Koll,Head of Japanese Equity Research at JP Morgan Japan,described Japan as the forgotten angel.It is showing good job creation,wage growth and policy decisions.Goldman Sachs agreed,saying Japanese profits could rise significantly in 2012.
Mr.Koll is a longtime resident of Japan and has many years of experience analysing its economy.
BHP Billiton Ltd.(BHP),iShares MSCI Japan Index Fund(EWJ),JP Morgan Chase(JPM),Goldman Sachs(GS)

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%.

Asia This Day:Firm Support for U.S. Treasuries

Asian markets fell Monday morning from 1-3% in reaction to the downgrade of U.S. credit.Singapore dropped 3.36%,and Hong Kong lost 2.95%.Nonetheless,Asian investors stood by U.S. bonds.Following an emergency meeting,South Korean officials reaffirmed their support for U.S. Treasury bonds.
Taiwan said the downgrade would have no direct or immediate impact.Hong Kong was sticking to its previous policies.Japan said it had not lost trust in Treasuries.Russia said U.S. Treasuries were reliable and it would not be reviewing its investment policy.
UBS said 70% of its clients indicated they would hold onto their U.S. bonds;30% would even increase their holdings.
Australian Treasurer Wayne Swan said Australia faces the challenges from a position of strength.Prime Minister Julia Gillard reassured the nation that Australia could handle the current instability.After all,Australia was the only developed country that did not go into recession during the 2008 financial crisis.
France questioned Standard&Poor's judgement in imposing the downgrade.All the same,U.S. stock futures were down precipitously Sunday evening,warning of a volatile Monday session ahead.
Singapore saw mostly cloudy conditions Monday morning.It was 86F,with winds S at 5 mph.The humidity was 70%.
Australian Adam Scott won the World Golf Championships Bridgestone Invitational in Ohio on Sunday.It was the 31-year old's eighth career victory on the PGA Tour.

Asia This Day:Carbon Tax Dust-Up in Sydney

Sydney is in an uproar over the Labour government's carbon tax proposal.Prime Minister Julia Gillard said we will require about 500 big polluters to pay a price per ton of pollution emitted into our atmosphere.Opposition leader Tony Abbott dismisses the idea,saying it will drive up prices,threaten jobs and do nothing at all for the environment.Millions will be worse off.
Industry is likewise up in arms.The mining and coal sectors call the proposal a job-killer.Companies feel that it puts them at a disadvantage.On the other hand,the green energy industry hails it as a wonderful opportunity.
The ASX 200 index was down substantially Monday as stocks reacted to the carbon tax,as well as Chinese inflation and Wall Street's Friday decline.
Sydney saw partly cloudy conditions Monday afternoon.It was 61F,with winds W at
14 mph and humidity of 27%.

Asia This Day

Some Asian markets are closed today,Monday.Australia and New Zealand are observing Anzac Day,and Hong Kong is marking Easter Monday.Of those which are open,the Nikkei was up 0.48,while the Korean Kospi rose 0.30 and the Singapore MSCI futures were virtually flat,edging up 0.05.
Australian Prime Minister Julia Gillard was working on the holiday,visiting Korea in search of a trade deal.She said the partnership between the two countries was full of promise and potential.She also toured the Demilitarized Zone between North and South Korea.
Tension flared on the border between Thailand and Cambodia.Ten soldiers have been killed since Friday in the territorial dispute,which started three years ago over ownership of several temples in the area.
A number of earnings reports will be issued this week.Big Chinese banks,tech companies,REITs,Panasonic,Canon and Honda are among those reporting in China and Japan.
The Hong Kong morning dawned clear at 79 degrees F.The humidity was 61% and winds were W at 4 mph.
Canon(CAJ),Honda Motor(HMC),Panasonic(PC),iShares FTSE Xinhua China 25 Index (FXI)