Monday Newsline:Change in India,Thailand;Adam Scott Wins

India's Nifty Fifty Index was up Monday on optimism over the swearing in of new Prime Minister Narendra Modi,63,who is seen as business-friendly.On Tuesday,Mr.Modi will have bilateral meetings with foreign leaders who are attending the ceremony,most notably with Pakistani Prime Minister Nawaz Sharif,whose presence at the event is unprecedented.Relations between the neighbouring countries have traditionally been tense.*
The MSCI Asia-Pacific index rose 0.29% in early Monday trading.US markets are closed for Memorial Day,which is considered the first of the summer holidays.Shanghai copper gained on declining stockpiles of the metal.*
Thailand's military coup received the approval of King Bhumibol.The army will name an interim premier today.At least hundreds of protestors demonstrated against the regime in the streets of Bangkok.*
In sport,Australia's Adam Scott won the Crowne Plaza Invitational at The Colonial in Fort Worth,Texas.The World Number One shot a nine under par 66 and beat American Jason Dufner in a playoff.He is the first person to win the Texas grand slam-all four PGA tournaments played in Texas.Scott is playing in The Memorial Tournament in Dublin,Ohio this week.
At the Formula One Monaco Grand Prix,AMG Petronas Mercedes continued its sweep of the series as teammates Nico Rosberg of Germany and Great Britain's Lewis Hamilton took first and second,respectively.Red Bull Racing's Daniel Ricciardo of Australia won the third spot in the royal box,while his teammate,the reigning World Champion Sebastian Vettel,retired with mechanical problems.

China Manufacturing Slows;Fatal Clash in Xinjiang Province

Preliminary results of a new survey of Chinese factories show a slowdown is occurring.The HSBC/Markit Economics China Flash PMI for November came in at 50.5,a three month low,missing the Bloomberg estimate of 50.9 and declining from November's final number of 50.8.Over 50.0 signifies growth in the manufacturing sector.The report revealed weakness in output gains and employment,although new orders were up.
Asian shares were down almost across the board on the news,along with fears of a Federal Reserve cutback in asset purchases,with the Nikkei dropping 1.62% in Monday trading and the Shanghai Composite off 1.60%.*
A late Sunday clash in a village near Kashgar in Northwest China's Xinjiang Province left 16 dead,according to official news agency Tianshan. Muslim Uighur militants reportedly attacked police with explosive devices and knives,killing 14 officers.Two police also died.The area has a history of unrest aimed at Han Chinese immigration into the ethnic Turkic region.*
Sergio Garcia took his fourth Asian Tour career victory Sunday at the Thailand Golf Championship at Amata Spring Country Club in Bangkok.It was the Spaniard's first and only win of the now-concluded 2013 season.He hadn't won since last December at the Johor Open in Malaysia.
Henrik Stenson of Sweden was second on the leader board,and Frenchman Alexander Levy finished third.

Asia This Day:Bernanke Succession;Syrian Framework

Asian markets were cheered by developments in the US and Geneva Monday morning,sending the MSCI Asia Pacific index up 0.55%.The withdrawal of former US Treasury Secretary Larry Summers from consideration to head the Federal Reserve is being seen as a definite plus by Asia,as it will supposedly make the tapering of supportive Fed policies a little less severe.
We're seeing the rally as being based on Summers being a litle more agressive on tapering,said Philip McNicholas,ASEAN economist at BNP Paribas.Broadly speaking,we do see down side risks to the region with this tapering.We actually think Malaysia is more sensitive.Malaysian markets are closed for a national holiday today.
In the Philippines,the government is being more effective in its spending.That process is still ongoing and showing improvement.Overall,the fundamental story is still there.In Indonesia,the government was able to implement fuel price reform in June.We do think that Thailand can ride this out.
Markets are expecting the Federal Reserve to make an announcement on tapering this week.Mr.Summers' prospective nomination to be Fed Chairman had become highly politicised,and even Democrats opposed him in an open letter supporting the nomination of Janet Yellen,who has become the consensus candidate.
Bill Gross of PIMCO tweeted that Summers' exit makes Monday a huge day for the risk-on trade,i.e.,the buying of equities.
Another positive influence on world markets is the agreement in Geneva on Saturday of a framework for Syrian chemical weapons disarmament by the US and Russia.This will now go to the UN for the final formulation of a Security Council resolution spelling out the details.The framework gives Syria one week to provide a complete inventory of its stockpile;stipulates the first inspection of the weapon sites in November;and the destruction of all the weapons by mid-2014.
US forces will remain on standby in the region to back the agreement up with military action.

The Outlook For Gold

Central banks turned net purchasers of gold in 2010,and that trend has continued,said Natalie Dempster of the World Gold Council.Stimulative policies are pushing investors into gold,along with the fiscal cliff.Concerns over credit have stopped the trend of investing in eurobonds.
Strong economic growth has been underpinning jewelry and central bank gold reserves demand from countries such asThailand and Russia.It's really been very broad-based.
At the moment,gold is a very good inflation hedge.It's a much better diversifier than other commodities because they are linked to industrial applications.
Monday New York gold closed at 1728.80 an ounce.

Asia This Day:Petronas To Make Big Canadian Acquisition

The Malaysian state-owned oil and gas company,Petronas,intends to make a major Canadian acquisition.The firm is expected to spend about five billion dollars for a substantial foothold in North America.It's following China's lead in seeking global energy assets.In June 2011,the company aqcuired a stake in Canadian shale gas assets for just over a billion dollars.
China's purchasing managers' index came in stronger than expected.The PMI reading was at 53.1,with 50 showing economic expansion.The index is focused on large enterprises and is affected by seasonality.Natural resources such as rubber and copper will be more in demand on the China and U.S. outlooks.
Tropical Storm Pakhar has hit the coast of Vietnam.The first storm of the year,it will also be troubling Thailand.
Mainland Chinese and Vietnam markets are closed today,Monday,for holidays.It is Tomb Sweeping in China and the Hung Kings' Anniversary in Vietnam.China's markets will remain closed through Wednesday.The rest of the Asian markets opened largely higher this morning,with the MSCI Asia Pacific Index up 0.28%.Japan's markets rose despite a gloomy Bank of Japan Tankan survey of business sentiment,which logged a -4 reading,showing more pessimists than optimists among large businesses.
It was partly cloudy in Kuala Lumpur,Malaysia this morning,with a temperature of 82F.

AIG Substantially Profitable Under Benmosche

AIG had a great operating quarter,said Robert Benmosche(pronounced Benmoshay),CEO of the insurance titan,with a 1.56 billion dollar profit.All of the operating units have been performing well.Thailand lost 368 million-a little above what we'd like to see,but Japan was the big problem,in the wake of payouts for the countries' 2011 natural disasters.
We see the U.S. economy as being pretty strong.Jobs and housing are doing better.We're pretty optimistic about 2012.
Our job is to build a great company.We're gonna focus on the owner who wants to hold the stock for a long time.We're working hard for our shareholders,clients and employees.
The government wants to get out of AIG as prudently and as quickly as they can.They feel they should be able to sell that stock at break even or a profit for the taxpayers.
People still need to save for their retirement.The annuities are selling reasonably well in this market.We provide the public with certain guarantees.We'll take care of that volatility.
Unfortunately,I have cancer,but I'm enjoying what I'm doing.There's no guarantee,but I'm gonna keep going until I can't.I'm feeling good.The doctors are working on some stuff,the tanned and fully bearded Robert Benmosche revealed.He agreed to lead the recovering insurance company in 2009.
Mr.Benmosche,67,had been CEO of Metropolitan Life.The married father of two,a New York native,has been treated with aggressive chemotherapy for an undisclosed type of cancer.
American International Group(AIG),Metropolitan Life(MET)

Continuing Repercussions of Bangkok Flooding

The recent flooding of the Thai capital,Bangkok,is having a number of ripple effects.Honda Motor,for instance,is scaling back production at six U.S. plants through December.This is because the flood has caused parts shortages.
Thailand's GDP for Q3 was up 3.5%-below estimates.The Bank of Thailand has cut its growth forecast for all of 2011 to 1.5% on account of the flooding,which killed around 600 people.More than 14,000 businesses have been hampered by the disaster.
There has been criticism of the Thai government under Prime Minister Yingluck Shinawatra over the flooding.The response was too slow;indeed,there was no preparation for the disaster,the critics complain.
Honda Motor Company(HMC)

Honda Troubled By Thai Flood

Honda Motor shares fell on Monday as the company announced its Thailand plant may be closed for six months.Honda needs to replace equipment that was damaged by the recent flooding in the outskirts of Bangkok.The plant produces the Civic and Accord models.
The center of Bangkok is generally dry,protected by a wall of hundreds of thousands of sandbags that guide the waters to the Thai delta.The wall has prompted bitter criticism by residents of the northern reaches of the city,whose homes have been flooded,while those living just inside the wall are dry.Prime Minister Yingluck Shinawatra pointed out that they had no choice but to protect the city center.Thailand's international image would suffer if the capital city were allowed to be flooded.She called for patience for 2-3 more days.These are very critical days in the disaster,the Prime Minister added.
About 400 people have died as a result of the flooding.The total financial losses so far are about 30 billion dollars.The Bank of Thailand is lowering its Gross Domestic Product growth estimate for the country from 4.2 to 2.6% because of the flooding.Industrial and agricultural exports will take a hit.
Toyota Motor has had to close three plants in Eastern Thailand because of a disruption of parts delivery caused by the flood.
In Bangkok,it was 84F on Monday under clear skies.The wind was NE at 7 mph,and the humidity was 62%.Good weather for the next several days should help with the flooding situation.
Honda Motor Company,Ltd.(HMC),Toyota Motor Corporation(TM)

Rice Crop Hindered By Flooding

The UN is warning that flooding in Southeast Asia may result in food shortages.Rice paddies have been devastated in Thailand,Cambodia and Laos.In Thailand and Cambodia,12.5% of the rice has been lost.Thailand,the world's largest rice exporter,may lose up to 25% of its harvest.These losses may cause a 17% price increase.
The Stock Exchange of Thailand is closed today,Monday,for the Chulalongkorn Holiday,which honors the death of a revered king.
In South Korea,the Pohang Iron and Steel Company,or POSCO,has reported a 75% drop in profits.This is because of both less demand and lower steel prices.POSCO is the world's third biggest steel producer.
Taiwan's Yani Tseng won the inaugural LPGA Taiwan Championship on Sunday,shooting a six under par 66 at the Sunrise Golf and Country Club in Yang Mei.It was Tseng's seventh LPGA Tour win of the season as she was cheered on by a large crowd of supporters in her native land.She donated 100,000 dollars of her prize to Taiwan junior golf.
In Bangkok on Monday,it was 88F under scattered clouds.The wind was NE at 6 mph,and the humidity was 58%.
POSCO(PKX)

Yingluck's First Foreign Trip

The new Thai Prime Minister,Yingluck Shinawatra,is making her first foreign trip in office.She is visiting Cambodia,Laos and Indonesia.Among other things,she is seeking resolution of a border dispute with Cambodia that has resulted in military clashes.
Markets were closed in Taiwan,Shanghai and South Korea on Monday for the Mid-Autumn festival.Hong Kong's stock exchange will close for this on Tuesday.
U.S. Ambassador to China Gary Locke gave his first talk to Chinese students on Friday at Beijing's Foreign Studies University.He said there's room for China and the U.S. to be partners.Both countries have shared interests and are not in a zero sum competition.We can and must achieve security and prosperity together.
Ambassador Locke,who is of Chinese descent,had formerly been Commerce Secretary in the Obama cabinet.A student remarked that his having a yellow face doesn't matter;it's what he says that matters.
The Australian and New Zealand dollars are down to one month lows on Euro debt crisis fears.Job advertisements in New Zealand fell 1.9% in August,and Australia's corporate bond risk has risen to its highest level since 2009.
Taiwanese golfer Yani Tseng won the Walmart Northwest Arkansas Championship on Sunday.The world number one was defending her title at the LPGA event.
In Bangkok,it was 82F on Monday under mostly cloudy skies.Winds were S at 12 mph,and the humidty was 94%.

Asia This Day:Japan Rebounds Strongly

The earnings reports coming form Japan are very good,says Jesper Koll of JP Morgan Chase.Corporate Japan is recovering very nicely.For April-June,it is very likely there was a sharp increase in aggregate earnings,a very steep recovery in overall sales.You could see 10-15% up in aggregate terms,Mr.Koll believes.
In Thailand,we're definitely seeing a return of foreign buying after the election,Andrew Yates of Asia Plus,the RBS partner in Thailand,indicated.It seems to be business as usual.The foreign flows are very strong.
We continue to like the banks.People are also looking at property and consumer plays.The SET property index is up 12% since the election.The single biggest concern is inflation.The Bank of Thailand has been pushing up rates,but the current 4% of inflation isn't too bad,in Mr.Yates'opinion.
Golfer Yani Tseng of Taiwan won the RICOH Women's British Open in Carnustie,Scotland on Sunday.
Most Asian shares were higher Monday morning in relief at the U.S. debt ceiling agreement.In Taipei,it was 90F under scattered clouds.Winds were N at 5 mph,and the humidity was 59%.

Asia This Day

Thailand's opposition Peau Thai party has scored a decisive victory in Sunday's election,bringing the country's first female prime minister,Yingluck Shinawatra,to power.There's still a lot of work to do for the well-being of the people and unity and reconciliation,the 44-year old politician said.She is the sister of deposed prime minister Thaksin Shinawatra,who is in exile in Dubai.The victory is being seen as an expression of voter dissatisfaction with the ruling elite.
The Thai army has accepted the result.She is to hold discussions with them.Ms.Shinawatra made the namaste gesture,her hands pressed together,as she acknowledged her victory.
China's purchasing managers indexes have come in less than expected,showing that the government's efforts to prevent bubbles from forming are having an effect.The manufacturing PMI was at 50.9,and the service sector PMI registered a 57.0 for June,indicating growth was still occurring,but at a slower pace than had been supposed.
The Asian markets all opened higher on Monday morning in reaction to Wall Street's strong performance on Friday.
Hong Kong went to work in hot and humid conditions,with the temperature at 88F and the humidity at 70%.Winds were southwest at 15mph under partly cloudy skies.

Asia This Day

FoxConn,a major outsourcer for Apple,Hewlett-Packard and Sony,has suffered a tragic fire and explosion in Chengdu,China.Three workers were killed.All operations at that plant and similar plants were shut down.
Computers are assembled at the stricken facility.iPad and iPhone production may also be hindered by the blast in a dust duct there,which caused smoke to billow from the plant.
FoxConn is based in Taipei,Taiwan.It was plagued by a rash of worker suicides last year.
Elsewhere in Asia,Thailand's GDP growth has exceeded expectations.It grew 3.0% on the year.The growth is being attributed to very strong exports,as well as robust domestic demand.
Asian markets were lower today,Monday,on account of fears about European debt and a Chinese regulator's call for better risk management by banks.
Hong Kong saw a temperature of 73F under mostly cloudy skies,with thunderstorms in the forecast.
Apple(AAPL),Sony(SNY),Hewlett-Packard(HPQ)

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)

Early Edition:Bangkok Back To Business

Bangkok,Thailand is getting back to business.The center of the city had been virtually shut down for weeks by redshirt protesters.Finally,the army forcefully drove them out.Sixty-eight deaths resulted from the political confrontation.
The dawn of a steamy Monday saw volunteers with big brooms continuing the clean-up,while heavily-armed troops were on patrol.Schools reopened and the stock exchange prepared to trade again,having been damaged by violent renegades.The exchange says they have revamped their back-up plans,and can open elsewhere if something happens in Bangkok.
The sounds of traffic once again rushed beneath the skyscrapers of the Southeast Asian metropolis.

Ford Gets In Sync

Ford Motor Company(F) is expanding in Southeast Asia.It is building a plant in Thailand with its Mazda affiliate.The factory will produce 100,000 small cars a year.The 2008 Ford Focus,the automaker's smallest car,has received good marks for being predictable and steady on the road,with more comfortable front seats and a 3% more powerful engine than in previous versions.It is perhaps most remarkable for its debut of the Sync voice control system.Designed by Microsoft(MSFT),this voice-activated feature reads text messages to you from Blackberries and other devices while you are driving.The Sync system has received a Breakthrough Award from Popular Mechanics for setting benchmarks in design,creativity and engineering.Talks between Ford and the United Auto Workers union are in high gear,now that the UAW has reached agreements with General Motors and Chrysler.Because Ford carries a lot of debt and isn't as far along in its restructuring as GM and Chrysler,talks could be more difficult.As well,CEO Alan Mulally has a reputation for toughness,having endured a 28 day strike while he was working at Boeing(BA).Ford intends to sell its luxury brands in the next two months,and has hired away a marketing executive from Toyota Motors(TM).Having had a big loss in '06 and the worst sales decline among US automakers in '07,the old line company needs every leg up it can lift.Ford shares have been sparked by the UAW accords with the other automakers,while Microsoft shares have been bolstered by its global business and success with electronic games.Both stocks were trading up this morning.