Japan Stocks News and Analysis from Seeking Alpha 'Japan' Tag RSS Syndication from SeekingAlpha.com SeekingAlpha.com http://seekingalpha.com/sector/japan Deflation Grabs Hold of Japan http://seekingalpha.com/article/148090-deflation-grabs-hold-of-japan?source=feed 148090 I really don't want to beat a dead horse here and although I already gave it a kick in the context of the release of the May consumer price data, I do think that this is a pretty significant [quote from Bloomberg with my emphasis].

Japan’s producer prices fell at a record pace in June as oil costs declined and companies required fewer materials amid a global recession. The costs companies pay for commodities and unfinished goods tumbled 6.6 percent from a year earlier after sliding a revised 5.5 percent in May, the Bank of Japan said today in Tokyo. The median estimate of 22 economists surveyed by Bloomberg News was for a 6.4 percent drop.

]]> Fri, 10 Jul 2009 09:32:24 -0400 Claus Vistesen Claus Vistesen submits:

I really don't want to beat a dead horse here and although I already gave it a kick in the context of the release of the May consumer price data, I do think that this is a pretty significant [quote from Bloomberg with my emphasis].

Japan’s producer prices fell at a record pace in June as oil costs declined and companies required fewer materials amid a global recession. The costs companies pay for commodities and unfinished goods tumbled 6.6 percent from a year earlier after sliding a revised 5.5 percent in May, the Bank of Japan said today in Tokyo. The median estimate of 22 economists surveyed by Bloomberg News was for a 6.4 percent drop.


Complete Story »]]> EWJ FXY Claus Vistesen Recovery in Japan? Not So Fast http://seekingalpha.com/article/147857-recovery-in-japan-not-so-fast?source=feed 147857 In early July, the BOJ (Bank of Japan) upgraded its core assessment of Japan's regional economies for the first time in nearly three years, ostensibly on signs of improvement in exports and production. The Bank of Japan's TANKAN (quarterly survey of business activity) for the second quarter showed the headline diffusion index upticking from a record minus 58 the March quarter to minus 48, which marked the first improvement in 10 quarters. Surveys of Japan economists indicate a consensus for the first annualized uptick in Japan's GDP (+2.3%) in a year, versus a record 14.2% annualized plunge in Q1 calendar 2009 (January-March).

Could Japan recover earlier than the U.S.? Not likely. These upgrades merely reflect the view that "the pace of deterioration has slowed". Data from the Cabinet Office implied the recession will continue for months to come, with companies delaying outlays on new plants and equipment. A leading indicator of core capital expenditures, core machinery orders, fell 3.0% in May from April, and much more than the consensus, which was for a 2.0% rise. Further, as the following charts show, the "improvement" seen so far is little more than a dead cat bounce.

]]> Thu, 09 Jul 2009 08:10:39 -0400 Darrel Whitten In early July, the BOJ (Bank of Japan) upgraded its core assessment of Japan's regional economies for the first time in nearly three years, ostensibly on signs of improvement in exports and production. The Bank of Japan's TANKAN (quarterly survey of business activity) for the second quarter showed the headline diffusion index upticking from a record minus 58 the March quarter to minus 48, which marked the first improvement in 10 quarters. Surveys of Japan economists indicate a consensus for the first annualized uptick in Japan's GDP (+2.3%) in a year, versus a record 14.2% annualized plunge in Q1 calendar 2009 (January-March).

Could Japan recover earlier than the U.S.? Not likely. These upgrades merely reflect the view that "the pace of deterioration has slowed". Data from the Cabinet Office implied the recession will continue for months to come, with companies delaying outlays on new plants and equipment. A leading indicator of core capital expenditures, core machinery orders, fell 3.0% in May from April, and much more than the consensus, which was for a 2.0% rise. Further, as the following charts show, the "improvement" seen so far is little more than a dead cat bounce.


Complete Story »]]> EWJ FXY Darrel Whitten Nikkei Down for 7th Consecutive Day http://seekingalpha.com/article/147766-nikkei-down-for-7th-consecutive-day?source=feed 147766 As of this writing, Asian markets are currently trading in the red, extending the declines seen over the last few days of trading. With last night’s declines, the Japanese Nikkei is down for the seventh day in a row.

The Japanese Nikkei slipped on Wednesday for the seventh consecutive day, even though earlier in the day, the U.S. market managed to close barely above the break-even line. Moreover, the S&P futures formed a bullish pin-bar on the daily chart, a pattern that is usually interpreted as a reversal sign.

]]> Thu, 09 Jul 2009 03:19:41 -0400 TheLFB The LFB submits:

As of this writing, Asian markets are currently trading in the red, extending the declines seen over the last few days of trading. With last night’s declines, the Japanese Nikkei is down for the seventh day in a row.

The Japanese Nikkei slipped on Wednesday for the seventh consecutive day, even though earlier in the day, the U.S. market managed to close barely above the break-even line. Moreover, the S&P futures formed a bullish pin-bar on the daily chart, a pattern that is usually interpreted as a reversal sign.


Complete Story »]]> EWJ FXY TheLFB How Long Can the U.S. Dollar Defy the Law of Gravity? http://seekingalpha.com/article/147614-how-long-can-the-u-s-dollar-defy-the-law-of-gravity?source=feed 147614 In the midst of the longest and deepest, post World War II recession, America’s financial position with the rest of the world has deteriorated sharply. Three decades of massive trade deficits have turned the United States from the world’s top lender to the world’s largest debtor, and dependent upon the whims of the so called emerging nations, laden with huge foreign currency reserves, to finance the bailout of Wall Street Oligarchs, and President Barack Obama’s social programs.

Foreigners own roughly half of the US government’s publicly traded debt, or $3.47 trillion, representing nearly 25% of the size of the US economy, the highest level in history. If foreign lenders were to significantly reduce their purchases of US Treasury notes, without even dumping their current holdings, US long term interest rates could zoom higher, and the US dollar could crumble.

]]> Wed, 08 Jul 2009 07:54:07 -0400 Gary Dorsch Gary Dorsch (Global Money Trends) submits:

In the midst of the longest and deepest, post World War II recession, America’s financial position with the rest of the world has deteriorated sharply. Three decades of massive trade deficits have turned the United States from the world’s top lender to the world’s largest debtor, and dependent upon the whims of the so called emerging nations, laden with huge foreign currency reserves, to finance the bailout of Wall Street Oligarchs, and President Barack Obama’s social programs.

Foreigners own roughly half of the US government’s publicly traded debt, or $3.47 trillion, representing nearly 25% of the size of the US economy, the highest level in history. If foreign lenders were to significantly reduce their purchases of US Treasury notes, without even dumping their current holdings, US long term interest rates could zoom higher, and the US dollar could crumble.


Complete Story »]]> FXY GLD SPY UDN UUP Gary Dorsch Japan's Struggle Continues http://seekingalpha.com/article/147605-japan-s-struggle-continues?source=feed 147605 It’s more of the same old news for Japan. The global economy continues to savage the country.

From Market Watch:

]]> Wed, 08 Jul 2009 07:07:39 -0400 Tom Lindmark Tom Lindmark submits:

It’s more of the same old news for Japan. The global economy continues to savage the country.

From Market Watch:


Complete Story »]]> EWJ EZJ Tom Lindmark Bank of Japan Likely to Extend Emergency Programs, But Not Yet http://seekingalpha.com/article/147539-bank-of-japan-likely-to-extend-emergency-programs-but-not-yet?source=feed 147539 Early word from the G8 meeting, like the EU fin min meeting, is that officials recognize that it is premature to enact exit strategies from the emergency facilities and actions to address the economic and financial crisis.

The BOJ is the next major central bank to meet. It will hold its meeting on July 14-15. Its current programs, which include purchasing commercial paper, corporate bonds, and unlimited loans to commercial banks, are set to expire at the end of Sept. There is some speculation that the BOJ may want to be pro-active and indicate an extension of the programs rather than waiting for either next month or Sept. This would send, arguably, important signals to the market about the BOJ commitment and lift some degree of uncertainty. Now is not the time, so the argument goes, for strategic ambiguity.
The BOJ last extended its programs that were set to expire in March 09 in Feb, a month before. That would make August a more likely time frame than next week's meeting. However, what makes now different than then is politics. By the middle of next month the campaigns for the mid-Sept elections will be well under way. Yet, the political implications of extending the emergency programs are not clear. Prime Minister Aso is Japan's third prime minister that has no popular mandate. His support in the recent polls is less than 20%. The issue of the election is unlikely to appear prominently in the BOJ deliberations.
On balance, then, the BOJ most likely will have to extend the programs, probably until the end of the current fiscal year next March, but look for a decision in Aug ., not next week.
]]> Wed, 08 Jul 2009 04:27:27 -0400 Marc Chandler Marc Chandler submits:

Early word from the G8 meeting, like the EU fin min meeting, is that officials recognize that it is premature to enact exit strategies from the emergency facilities and actions to address the economic and financial crisis.

The BOJ is the next major central bank to meet. It will hold its meeting on July 14-15. Its current programs, which include purchasing commercial paper, corporate bonds, and unlimited loans to commercial banks, are set to expire at the end of Sept. There is some speculation that the BOJ may want to be pro-active and indicate an extension of the programs rather than waiting for either next month or Sept. This would send, arguably, important signals to the market about the BOJ commitment and lift some degree of uncertainty. Now is not the time, so the argument goes, for strategic ambiguity.
The BOJ last extended its programs that were set to expire in March 09 in Feb, a month before. That would make August a more likely time frame than next week's meeting. However, what makes now different than then is politics. By the middle of next month the campaigns for the mid-Sept elections will be well under way. Yet, the political implications of extending the emergency programs are not clear. Prime Minister Aso is Japan's third prime minister that has no popular mandate. His support in the recent polls is less than 20%. The issue of the election is unlikely to appear prominently in the BOJ deliberations.
On balance, then, the BOJ most likely will have to extend the programs, probably until the end of the current fiscal year next March, but look for a decision in Aug ., not next week.

Complete Story »]]> Marc Chandler Asian Tech Stock Weekly Summary (June 29 - July 5) http://seekingalpha.com/article/147381-asian-tech-stock-weekly-summary-june-29-july-5?source=feed 147381 Japan

Hardware

  • Panasonic Corp. (PC) said its domestic home-appliance unit may exceed its sales forecast this year, helped by government incentives to buy energy-saving products. The company expects the program to boost demand and help sales beat a projection of 640 billion yen (US$6.7 billion) in the year ending March 2010, according to Jun Ishii, the head of Panasonic Japan’s marketing division for home appliances. The home-products unit overall was the most profitable of Panasonic’s four main businesses last year, outdoing divisions making televisions and stereos, electrical components and homes. The July-to-September quarter will be critical for the Japanese unit’s results, Ishii said, after the government introduced incentives in May to boost spending on appliances as a part of Prime Minister Taro Aso’s plan to spur economic growth.
  • Suning Appliance would pay 800 million yen (US$8.3 million) for 27.36 percent of Laox, making it the loss-making Japanese electronics retailer's biggest shareholder. Suning would pay 12 yen for each of 66.67 million shares and get two seats on the Laox board. Chinese firms have been looking for bargains in their efforts to expand abroad, but Suning said this was the first time a mainland firm had purchased a stake in a listed Japanese company. Suning hoped to return the flagging Laox to profit within a year or 18 months. Suning aimed to use Laox's expertise in the highly competitive Japanese consumer electronics retail market to help it improve business practices such as pricing policies, store layout and customer service.
  • Sony Corp (SNE) is considering developing a cellphone-game gear hybrid in a bid to better compete with Apple Inc's (AAPL) highly popular iPod and iPhone. The Japanese electronics and entertainment conglomerate launched its first Walkman three decades ago, dominating the portable music player market, but it has been running far behind the iPod and iPhone in recent years. Sony plans to set up a project team as early as July to develop a new product that combines functions of its portable game player and Sony Ericsson's mobile phones. Sony Ericsson is a cellphone joint venture between Sony and Sweden's Ericsson (ERIC). A growing number of game-makers including Capcom and Square Enix are now offering software for the iPod and iPhone to take advantage of the Apple products' popularity, posing a threat to Sony's PlayStation Portable and Nintendo Co Ltd's DS.

Telecommunications

  • NTT Docomo Inc. (DCM) will launch a new service jointly with Mizuho Bank to enable subscribers to transfer money via mobile phone handsets without opening new bank accounts. Rival KDDI Corp. (KDDIF.PK), the operator of the 'au' brand mobile phone service, has already been offering a similar banking service, but its service requires its users to open new bank accounts. Under NTT Docomo's money transfer service, subscribers input the receiver's phone number and part of their surname to make a payment of up to 20,000 yen (US$208.28), which will be charged on their monthly bills with a fee of 105 yen (US$1.09). The recipient can use the transferred money to pay their phone bills or put into their bank accounts via Mizuho Bank.

Semiconductor

  • NEC Electronics Corp's (NELTY.PK) semiconductor orders would increase several percent this quarter, helped by demand for chips used in cars and liquid-crystal displays. Orders in the quarter probably jumped one and a half times from the previous three-month period, as manufacturers emerged from a period of excessive inventory cuts. NEC Electronics in May planned to cut labour and research costs by 90 billion yen (US$936 million) this financial year to break even at operating level this fiscal year. The company was increasing production to meet a recovery in demand. The factory-utilisation ratio, a measure of how close the plants are to operating at full capacity, would probably rise to 60 percent this quarter, from about 50 percent last quarter and 43 percent in the first quarter this year.
  • Elpida Memory (ELPDF.PK) confirmed that it would receive 160 billion yen (US$1.6 billion) in aid and loans from the Japanese government, its Taiwanese partner and financial institutions after falling chip prices led to a record loss in the past fiscal year. The company would sell 30 billion yen in preferred shares to the state-run Development Bank of Japan by the end of next month. Taiwan Memory, a chipmaker set up by the island's government, planned to invest an additional 20billion yen by March 31, the bank said, while banks would lend the balance of funding. Elpida is Japan's last hope in personal-computer memory chips in an industry dominated by South Korea's Samsung Electronics and Hynix Semiconductor. Makers of computer memory worldwide are seeking funding to survive the chip glut that drove Qimonda to seek bankruptcy protection and resulted in a record loss at Elpida last fiscal year.
  • Shareholders at Japanese specialty chip maker Rohm Co. Ltd. voted against a US$156 million share buyback proposal by U.S. investment fund Brandes Investment Partners. Brandes, which has US$42.4 billion under management, had proposed that cash-rich Rohm buy back up to 2.5 million of its own shares for a maximum 15 billion yen (US$156 million).

Korea

Media, Gaming and Entertainment

  • TU Media, the country's sole operator of satellite-based digital multimedia broadcasting (DMB), said the number of its subscribers topped 2 million, four years after it launched the service. More than 20 million terrestrial DMB devices, including mobile phones, were also sold as of the end of May. The numbers suggest that about 45 percent of South Korea's 49 million population enjoy mobile TV service. South Korea first launched its DMB service in 2005, the first country in the world to do so, with the development of digital radio transmission technology. It has since become a ubiquitous feature of society thanks to a tech-savvy population and widespread cellular phones and laptop computers. Dubbed "TVs in hand," the mobile service allows people to surf TV channels via palm-sized monitors built into their cell phones while sitting in an underground subway or traveling via train. Various modes of public transportation such as buses, trains, and subways have also begun to equip vehicles with monitors broadcasting programs at all times.

Hardware

  • LG Electronics (LGERF.PK) aims to overtake Sony as the second-biggest this year, driven by stronger than expected demand. The company was maintaining its LCD television shipment target of 18 million units this year, which would be achievable, said Simon Kang, the head of the firm's home-entertainment division. Global revenue from LCD televisions would drop 6 percent this year to US$76 billion, researcher DisplaySearch said last week, higher than its previous estimate of US$66 billion. Worldwide LCD television shipments will rise 21 percent to 127 million units, compared with an earlier prediction of 120 million sets, because of higher demand from China and as more consumers replace bulkier glass-tube sets. LG aimed to increase sales of flat-panel televisions by as much as 42 percent this year and boost market share with new products and technologies. Shipments of LCD television sets might rise 50 percent to 18 million sets this year, while those of plasma models would probably climb 7 percent to 3 million sets.
  • Tokyo-based Idemitsu Kosan has entered into a strategic alliance with South Korea's LG Display to develop high-performance organic light-emitting diode displays. Their agreement encompasses the cross licensing of patented technologies related to OLED, and mutual collaboration on OLED technologies. The alliance is seen as mutually beneficial, with Idemitsu securing a global display leader as a customer by supplying high-performance OLED materials and device-structure proposals to the Korean display maker, and LG Display gaining the tools to accelerate its growth in the OLED business. Idemitsu turned its attention to phosphorescent materials as well as fluorescent materials. The company has been active in joint development with device manufacturers Sony and Toshiba Mobile Display, in parallel, and expects its new partnership to further strengthen its OLED-material business.
  • Samsung Electronics (SSNLF.PK) has won a ruling from the U.S. International Trade Commission against Japan-based electronics company Sharp over patented technology for liquid crystal displays. The ITC found that Sharp infringed one of Samsung's patents in its LCD televisions and displays and ordered a ban on their import into the U.S. market. Samsung filed a complaint with the ITC in 2007 to investigate Sharp's products for infringing four of its patents. Sharp filed a counter-claim in March 2008. Earlier this month Sharp won a ruling from the ITC that found Samsung to have violated four Sharp patents and ordered a ban on the import of its LCD televisions, computer monitors, and professional displays in the U.S. market. In March Samsung won a LCD patent infringement suit against Sharp in the Tokyo District Court in Japan. In January the ITC ruled that Sharp infringed two Samsung LCD patents.

China

Hardware

  • Lenovo Group (LNVGY.PK) raised the compensation of former chief executive William Amelio by 54 percent last financial year, after the mainland's biggest personal-computer maker posted a record annual loss. Mr. Amelio, who resigned on February 5, was paid US$17.6 million in the year to March, including US$3.25 million as compensation for loss of office as director. The document also showed Mr. Amelio's total compensation was US$11.4 million a year earlier. Yang Yuanqing, who replaced Mr. Amelio as Lenovo's chief executive, received a 42 percent increase in total pay to US$7.2 million for the financial year to March. Mr. Yang was previously the chairman, a title now held again by Lenovo founder Liu Chuanzhi. Mr. Amelio, who joined Lenovo from Dell in December 2005, had resigned in the aftermath of the firm's first deficit in almost three years - a net loss of US$97 million for the quarter to December last year, a reversal from a net profit of US$172 million the previous year.
  • Samsung Electronics' Greater China sales volume reached US$44.5 billion in 2008, while its China region purchasing volume rose 27 percent year-on-year in the period to US$27.2 billion. Samsung expects China region purchasing volume to climb to US$32 billion in 2009 and currently has more than 4,500 domestic suppliers.

Telecommunications

  • Ericsson has won contracts to provide fixed broadband to China's three telecom operators, China Mobile (CHL), China Telecom (CHA) and China Unicom (CHU). The initial contract will provide fiber-to-the-home (FTTH) networks for services including high-definition TV and high-speed broadband in Shanghai and eight provinces: Anhui, Guangdong, Hebei, Heilongjiang, Hubei, Liaoning, Shandong, and Sichuan.
  • China Mobile Ltd. is still applying for approval from Taiwanese regulators on its plan to take a stake in Taiwan's Far EasTone Telecommunications Co. The Taiwan Affairs Office is under the State Council, China's highest executive body, and is in charge of cross-strait affairs. State-owned wireless carrier China Mobile agreed to pay about US$527 million for 12 percent of Far EasTone, which would be the first deal between telecommunications companies in China and Taiwan if it is allowed. Far EasTone shareholders have already approved the deal. Taiwan opened 100 sectors to investment by mainland Chinese companies, but didn't include the politically sensitive telecommunications sector, indicating the investment is unlikely to be approved by Taiwanese authorities.
  • China Telecom's 3G brand e-Surfing opened a 3.6 million-handset tender. 70 handset manufacturers - including ZTE, LG Electronics, Samsung Electronics, Nokia, Huawei and China Wireless Technologies subsidiary Yulong Coolpad submitted bids to supply the handsets, which will retail for around 1,000 yuan (US$146.3).

Media, Entertainment and Gaming

  • The9 (NCTY) President Xiaowei Chen has renewed her contract with the company for another two years, reports National Business Daily quoting an unnamed source close to Chen. The9 announced that its full year 2008 income, to be reported on Form 20-F on or before July 15, will be 55 percent to 75 percent lower than net income for the same period reported in its Form 6-K on February 24. The9 has incurred charges related to the loss of its operating license for 3D MMORPG World of Warcraft. Activision Blizzard division Blizzard Entertainment has licensed the game to NetEase for mainland operation following the expiration of The9's contract.
  • Shanda Games Ltd. (SNDA), subsidiary of local online game operator Shanda, announced that it's struck a deal with Japanese peer CyberStep. Inc. to operate the latter's two MMORPGs, GetAmped and CosmicBreak, in China. GetAmped and CosmicBreak are both 3D massively multiplayer online role-playing games, with the former a combat game and the latter a shooter. CyberStep is a Japanese game developer which has been involved in the market for the past 10 years and GetAmped has been operating in over 10 countries so far.

Software

  • Oracle Corp. (ORCL) is expected to commence its most important marketing campaign on the mainland this year following the global launch of its long-anticipated Fusion Middleware 11g suite of products. On the back of the mainland's economic stimulus initiatives, Oracle anticipated that enterprises in various industries are expected to be well positioned to adopt the software release, which includes key technologies brought by Oracle from its many acquisitions. The take-up will start in the telecommunications sector, where mainland network operators are building their nationwide 3G mobile infrastructure, and in the public sector, thanks to continued government spending. The central government announced in November last year a 4 trillion yuan (US$585 billion) economic stimulus package, including support to 10 strategic industries.

Semiconductor

  • A8 Digital Music Holdings has teamed up with semiconductor firm MediaTek to target the potentially vast number of 3G handsets being produced for the domestic market. A8 Music has agreed to have its proprietary software, A8 Box, embedded in the Taiwanese firm's chipsets destined for 3G mobile telephones made on the mainland. Liu Xiaosong, the founder, chairman and chief executive of A8 Music, said the deal would boost the penetration rate of A8 Box in the mainland mobile market. The company, which owns more than 60,000 original works of music on the mainland, designed the A8 Box software to enable mobile users to easily access and buy content from its large online database and various digital music service providers.

Alternative Energy

  • Yingli Green Energy (YGE) has been selected by State Development and Investment Corp. subsidiary SDIC Huajing Power Holding, to supply PV modules for a 10MW on-grid solar plant to be located in Dunhuang, Gansu Province. SDIC Huajing Power Holdings and Yingli made a combined bid to operate the similar-sized government project in Dunhuang.
  • LDK Solar (LDK) expects second quarter shipments to come in between 220MW and 230MW, above previously issued guidance of 200MW to 220MW, while revenues are expected to be US$215 million to US$225 million. In the first quarter of 2009, LDK booked a net loss of US$22.5 million on revenues of US$283.3 million and 206MW of wafer shipments. LDK Solar has secured a one-year principal loan of 500 million yuan (US$73 million) from The Export-Import Bank of China, as well as a three-year 500 million yuan (US$73.1 million) loan from Huarong International Trust to support polysilicon plant construction. LDK Solar had more than US$250 million in cash as of June 30. The company's annualized wafer capacity reached 1.5GW by June 30. LDK saw strong demand for wafers in the second quarter and plans to resume wafer plant expansion to reach 2GW of annual capacity by the end of 2009.
  • ReneSola Ltd. (SOL) announced that its operating subsidiary, Zhejiang Yuhui Solar Energy Source Co. Ltd., has qualified as a high technology enterprise and will receive a reduced income tax rate of 15 percent for three years, starting January 1, 2009. The current statutory tax rate is 25 percent. China's central government awards the high technology classification on the basis of the number of patents and propriety technologies held by the company, as well as its R&D facilities.
  • Trina Solar Ltd. (TSL) has secured a new credit line of US$57 million from Standard Chartered Bank (China) Ltd., bringing Trina's total credit to roughly US$520 million. The company aims to use the credit for raw material procurement and product sales.
]]> Tue, 07 Jul 2009 09:45:14 -0400 IRG Japan

Hardware

  • Panasonic Corp. (PC) said its domestic home-appliance unit may exceed its sales forecast this year, helped by government incentives to buy energy-saving products. The company expects the program to boost demand and help sales beat a projection of 640 billion yen (US$6.7 billion) in the year ending March 2010, according to Jun Ishii, the head of Panasonic Japan’s marketing division for home appliances. The home-products unit overall was the most profitable of Panasonic’s four main businesses last year, outdoing divisions making televisions and stereos, electrical components and homes. The July-to-September quarter will be critical for the Japanese unit’s results, Ishii said, after the government introduced incentives in May to boost spending on appliances as a part of Prime Minister Taro Aso’s plan to spur economic growth.
  • Suning Appliance would pay 800 million yen (US$8.3 million) for 27.36 percent of Laox, making it the loss-making Japanese electronics retailer's biggest shareholder. Suning would pay 12 yen for each of 66.67 million shares and get two seats on the Laox board. Chinese firms have been looking for bargains in their efforts to expand abroad, but Suning said this was the first time a mainland firm had purchased a stake in a listed Japanese company. Suning hoped to return the flagging Laox to profit within a year or 18 months. Suning aimed to use Laox's expertise in the highly competitive Japanese consumer electronics retail market to help it improve business practices such as pricing policies, store layout and customer service.
  • Sony Corp (SNE) is considering developing a cellphone-game gear hybrid in a bid to better compete with Apple Inc's (AAPL) highly popular iPod and iPhone. The Japanese electronics and entertainment conglomerate launched its first Walkman three decades ago, dominating the portable music player market, but it has been running far behind the iPod and iPhone in recent years. Sony plans to set up a project team as early as July to develop a new product that combines functions of its portable game player and Sony Ericsson's mobile phones. Sony Ericsson is a cellphone joint venture between Sony and Sweden's Ericsson (ERIC). A growing number of game-makers including Capcom and Square Enix are now offering software for the iPod and iPhone to take advantage of the Apple products' popularity, posing a threat to Sony's PlayStation Portable and Nintendo Co Ltd's DS.

Telecommunications

  • NTT Docomo Inc. (DCM) will launch a new service jointly with Mizuho Bank to enable subscribers to transfer money via mobile phone handsets without opening new bank accounts. Rival KDDI Corp. (KDDIF.PK), the operator of the 'au' brand mobile phone service, has already been offering a similar banking service, but its service requires its users to open new bank accounts. Under NTT Docomo's money transfer service, subscribers input the receiver's phone number and part of their surname to make a payment of up to 20,000 yen (US$208.28), which will be charged on their monthly bills with a fee of 105 yen (US$1.09). The recipient can use the transferred money to pay their phone bills or put into their bank accounts via Mizuho Bank.

Semiconductor

  • NEC Electronics Corp's (NELTY.PK) semiconductor orders would increase several percent this quarter, helped by demand for chips used in cars and liquid-crystal displays. Orders in the quarter probably jumped one and a half times from the previous three-month period, as manufacturers emerged from a period of excessive inventory cuts. NEC Electronics in May planned to cut labour and research costs by 90 billion yen (US$936 million) this financial year to break even at operating level this fiscal year. The company was increasing production to meet a recovery in demand. The factory-utilisation ratio, a measure of how close the plants are to operating at full capacity, would probably rise to 60 percent this quarter, from about 50 percent last quarter and 43 percent in the first quarter this year.
  • Elpida Memory (ELPDF.PK) confirmed that it would receive 160 billion yen (US$1.6 billion) in aid and loans from the Japanese government, its Taiwanese partner and financial institutions after falling chip prices led to a record loss in the past fiscal year. The company would sell 30 billion yen in preferred shares to the state-run Development Bank of Japan by the end of next month. Taiwan Memory, a chipmaker set up by the island's government, planned to invest an additional 20billion yen by March 31, the bank said, while banks would lend the balance of funding. Elpida is Japan's last hope in personal-computer memory chips in an industry dominated by South Korea's Samsung Electronics and Hynix Semiconductor. Makers of computer memory worldwide are seeking funding to survive the chip glut that drove Qimonda to seek bankruptcy protection and resulted in a record loss at Elpida last fiscal year.
  • Shareholders at Japanese specialty chip maker Rohm Co. Ltd. voted against a US$156 million share buyback proposal by U.S. investment fund Brandes Investment Partners. Brandes, which has US$42.4 billion under management, had proposed that cash-rich Rohm buy back up to 2.5 million of its own shares for a maximum 15 billion yen (US$156 million).

Korea

Media, Gaming and Entertainment

  • TU Media, the country's sole operator of satellite-based digital multimedia broadcasting (DMB), said the number of its subscribers topped 2 million, four years after it launched the service. More than 20 million terrestrial DMB devices, including mobile phones, were also sold as of the end of May. The numbers suggest that about 45 percent of South Korea's 49 million population enjoy mobile TV service. South Korea first launched its DMB service in 2005, the first country in the world to do so, with the development of digital radio transmission technology. It has since become a ubiquitous feature of society thanks to a tech-savvy population and widespread cellular phones and laptop computers. Dubbed "TVs in hand," the mobile service allows people to surf TV channels via palm-sized monitors built into their cell phones while sitting in an underground subway or traveling via train. Various modes of public transportation such as buses, trains, and subways have also begun to equip vehicles with monitors broadcasting programs at all times.

Hardware

  • LG Electronics (LGERF.PK) aims to overtake Sony as the second-biggest this year, driven by stronger than expected demand. The company was maintaining its LCD television shipment target of 18 million units this year, which would be achievable, said Simon Kang, the head of the firm's home-entertainment division. Global revenue from LCD televisions would drop 6 percent this year to US$76 billion, researcher DisplaySearch said last week, higher than its previous estimate of US$66 billion. Worldwide LCD television shipments will rise 21 percent to 127 million units, compared with an earlier prediction of 120 million sets, because of higher demand from China and as more consumers replace bulkier glass-tube sets. LG aimed to increase sales of flat-panel televisions by as much as 42 percent this year and boost market share with new products and technologies. Shipments of LCD television sets might rise 50 percent to 18 million sets this year, while those of plasma models would probably climb 7 percent to 3 million sets.
  • Tokyo-based Idemitsu Kosan has entered into a strategic alliance with South Korea's LG Display to develop high-performance organic light-emitting diode displays. Their agreement encompasses the cross licensing of patented technologies related to OLED, and mutual collaboration on OLED technologies. The alliance is seen as mutually beneficial, with Idemitsu securing a global display leader as a customer by supplying high-performance OLED materials and device-structure proposals to the Korean display maker, and LG Display gaining the tools to accelerate its growth in the OLED business. Idemitsu turned its attention to phosphorescent materials as well as fluorescent materials. The company has been active in joint development with device manufacturers Sony and Toshiba Mobile Display, in parallel, and expects its new partnership to further strengthen its OLED-material business.
  • Samsung Electronics (SSNLF.PK) has won a ruling from the U.S. International Trade Commission against Japan-based electronics company Sharp over patented technology for liquid crystal displays. The ITC found that Sharp infringed one of Samsung's patents in its LCD televisions and displays and ordered a ban on their import into the U.S. market. Samsung filed a complaint with the ITC in 2007 to investigate Sharp's products for infringing four of its patents. Sharp filed a counter-claim in March 2008. Earlier this month Sharp won a ruling from the ITC that found Samsung to have violated four Sharp patents and ordered a ban on the import of its LCD televisions, computer monitors, and professional displays in the U.S. market. In March Samsung won a LCD patent infringement suit against Sharp in the Tokyo District Court in Japan. In January the ITC ruled that Sharp infringed two Samsung LCD patents.

China

Hardware

  • Lenovo Group (LNVGY.PK) raised the compensation of former chief executive William Amelio by 54 percent last financial year, after the mainland's biggest personal-computer maker posted a record annual loss. Mr. Amelio, who resigned on February 5, was paid US$17.6 million in the year to March, including US$3.25 million as compensation for loss of office as director. The document also showed Mr. Amelio's total compensation was US$11.4 million a year earlier. Yang Yuanqing, who replaced Mr. Amelio as Lenovo's chief executive, received a 42 percent increase in total pay to US$7.2 million for the financial year to March. Mr. Yang was previously the chairman, a title now held again by Lenovo founder Liu Chuanzhi. Mr. Amelio, who joined Lenovo from Dell in December 2005, had resigned in the aftermath of the firm's first deficit in almost three years - a net loss of US$97 million for the quarter to December last year, a reversal from a net profit of US$172 million the previous year.
  • Samsung Electronics' Greater China sales volume reached US$44.5 billion in 2008, while its China region purchasing volume rose 27 percent year-on-year in the period to US$27.2 billion. Samsung expects China region purchasing volume to climb to US$32 billion in 2009 and currently has more than 4,500 domestic suppliers.

Telecommunications

  • Ericsson has won contracts to provide fixed broadband to China's three telecom operators, China Mobile (CHL), China Telecom (CHA) and China Unicom (CHU). The initial contract will provide fiber-to-the-home (FTTH) networks for services including high-definition TV and high-speed broadband in Shanghai and eight provinces: Anhui, Guangdong, Hebei, Heilongjiang, Hubei, Liaoning, Shandong, and Sichuan.
  • China Mobile Ltd. is still applying for approval from Taiwanese regulators on its plan to take a stake in Taiwan's Far EasTone Telecommunications Co. The Taiwan Affairs Office is under the State Council, China's highest executive body, and is in charge of cross-strait affairs. State-owned wireless carrier China Mobile agreed to pay about US$527 million for 12 percent of Far EasTone, which would be the first deal between telecommunications companies in China and Taiwan if it is allowed. Far EasTone shareholders have already approved the deal. Taiwan opened 100 sectors to investment by mainland Chinese companies, but didn't include the politically sensitive telecommunications sector, indicating the investment is unlikely to be approved by Taiwanese authorities.
  • China Telecom's 3G brand e-Surfing opened a 3.6 million-handset tender. 70 handset manufacturers - including ZTE, LG Electronics, Samsung Electronics, Nokia, Huawei and China Wireless Technologies subsidiary Yulong Coolpad submitted bids to supply the handsets, which will retail for around 1,000 yuan (US$146.3).

Media, Entertainment and Gaming

  • The9 (NCTY) President Xiaowei Chen has renewed her contract with the company for another two years, reports National Business Daily quoting an unnamed source close to Chen. The9 announced that its full year 2008 income, to be reported on Form 20-F on or before July 15, will be 55 percent to 75 percent lower than net income for the same period reported in its Form 6-K on February 24. The9 has incurred charges related to the loss of its operating license for 3D MMORPG World of Warcraft. Activision Blizzard division Blizzard Entertainment has licensed the game to NetEase for mainland operation following the expiration of The9's contract.
  • Shanda Games Ltd. (SNDA), subsidiary of local online game operator Shanda, announced that it's struck a deal with Japanese peer CyberStep. Inc. to operate the latter's two MMORPGs, GetAmped and CosmicBreak, in China. GetAmped and CosmicBreak are both 3D massively multiplayer online role-playing games, with the former a combat game and the latter a shooter. CyberStep is a Japanese game developer which has been involved in the market for the past 10 years and GetAmped has been operating in over 10 countries so far.

Software

  • Oracle Corp. (ORCL) is expected to commence its most important marketing campaign on the mainland this year following the global launch of its long-anticipated Fusion Middleware 11g suite of products. On the back of the mainland's economic stimulus initiatives, Oracle anticipated that enterprises in various industries are expected to be well positioned to adopt the software release, which includes key technologies brought by Oracle from its many acquisitions. The take-up will start in the telecommunications sector, where mainland network operators are building their nationwide 3G mobile infrastructure, and in the public sector, thanks to continued government spending. The central government announced in November last year a 4 trillion yuan (US$585 billion) economic stimulus package, including support to 10 strategic industries.

Semiconductor

  • A8 Digital Music Holdings has teamed up with semiconductor firm MediaTek to target the potentially vast number of 3G handsets being produced for the domestic market. A8 Music has agreed to have its proprietary software, A8 Box, embedded in the Taiwanese firm's chipsets destined for 3G mobile telephones made on the mainland. Liu Xiaosong, the founder, chairman and chief executive of A8 Music, said the deal would boost the penetration rate of A8 Box in the mainland mobile market. The company, which owns more than 60,000 original works of music on the mainland, designed the A8 Box software to enable mobile users to easily access and buy content from its large online database and various digital music service providers.

Alternative Energy

  • Yingli Green Energy (YGE) has been selected by State Development and Investment Corp. subsidiary SDIC Huajing Power Holding, to supply PV modules for a 10MW on-grid solar plant to be located in Dunhuang, Gansu Province. SDIC Huajing Power Holdings and Yingli made a combined bid to operate the similar-sized government project in Dunhuang.
  • LDK Solar (LDK) expects second quarter shipments to come in between 220MW and 230MW, above previously issued guidance of 200MW to 220MW, while revenues are expected to be US$215 million to US$225 million. In the first quarter of 2009, LDK booked a net loss of US$22.5 million on revenues of US$283.3 million and 206MW of wafer shipments. LDK Solar has secured a one-year principal loan of 500 million yuan (US$73 million) from The Export-Import Bank of China, as well as a three-year 500 million yuan (US$73.1 million) loan from Huarong International Trust to support polysilicon plant construction. LDK Solar had more than US$250 million in cash as of June 30. The company's annualized wafer capacity reached 1.5GW by June 30. LDK saw strong demand for wafers in the second quarter and plans to resume wafer plant expansion to reach 2GW of annual capacity by the end of 2009.
  • ReneSola Ltd. (SOL) announced that its operating subsidiary, Zhejiang Yuhui Solar Energy Source Co. Ltd., has qualified as a high technology enterprise and will receive a reduced income tax rate of 15 percent for three years, starting January 1, 2009. The current statutory tax rate is 25 percent. China's central government awards the high technology classification on the basis of the number of patents and propriety technologies held by the company, as well as its R&D facilities.
  • Trina Solar Ltd. (TSL) has secured a new credit line of US$57 million from Standard Chartered Bank (China) Ltd., bringing Trina's total credit to roughly US$520 million. The company aims to use the credit for raw material procurement and product sales.

Complete Story »]]> ASIA CHA CHL CHU DCM ELPDF.PK EWJ EWY FXI KDDIF.PK LDK LGERF.PK LNVGY.PK NCTY NELTY.PK ORCL PC SNDA SNE SOL SSNLF.PK TSL YGE IRG Toyota Plans to Mass-Produce Plug-in Prius in 2012 http://seekingalpha.com/article/147324-toyota-plans-to-mass-produce-plug-in-prius-in-2012?source=feed 147324 By Jeff St. John

Toyota (TM) will start mass-producing a plug-in version of its Prius hybrid in 2012, with plans to make 20,000 to 30,000 of the vehicles that year, according to news reports.

]]> Tue, 07 Jul 2009 05:58:43 -0400 Greentech Media Greentech Media submits:

By Jeff St. John

Toyota (TM) will start mass-producing a plug-in version of its Prius hybrid in 2012, with plans to make 20,000 to 30,000 of the vehicles that year, according to news reports.


Complete Story »]]> F GMGMQ.PK TM Greentech Media Risk Aversion Sends Yen Higher http://seekingalpha.com/article/147135-risk-aversion-sends-yen-higher?source=feed 147135 Overall, the dollar showed some signs of the strength during the Asian session, even though the dollar index moved very little. However, the real gainer of the Asian session was the yen, which strengthened across the board as the Japanese index Nikkei is down approximately 1.5%. Ahead, the market may remain in risk aversion mode throughout the European session as the S&P futures and crude oil continue to decline.

The Euro (Eur/Usd) moved relatively flat, even though the other major currencies declined compared to the dollar shortly after the London open. On the daily chart, the euro trades in a very volatile area trapped below the 20-day moving average, but above the resistance trend-line, that connects the 06.16 and the 06.23 lows.

]]> Mon, 06 Jul 2009 08:54:55 -0400 TheLFB The LFB submits:

Overall, the dollar showed some signs of the strength during the Asian session, even though the dollar index moved very little. However, the real gainer of the Asian session was the yen, which strengthened across the board as the Japanese index Nikkei is down approximately 1.5%. Ahead, the market may remain in risk aversion mode throughout the European session as the S&P futures and crude oil continue to decline.

The Euro (Eur/Usd) moved relatively flat, even though the other major currencies declined compared to the dollar shortly after the London open. On the daily chart, the euro trades in a very volatile area trapped below the 20-day moving average, but above the resistance trend-line, that connects the 06.16 and the 06.23 lows.


Complete Story »]]> EWJ FXA FXB FXC FXE FXY SZE UDN UUP TheLFB Japan Defends Dollar’s Status, China Tears It Down http://seekingalpha.com/article/147021-japan-defends-dollars-status-china-tears-it-down?source=feed 147021 In the lead-up to next week’s G8 summit, the Chinese have been making yet more noises about setting up a new monetary system without the dollar as its anchor and leading reserve currency. The Chinese, who have maintained a export orientation which has made them the largest holder of U.S. government bonds, are concerned that they are holding depreciating assets. As the U.S. economic and fiscal position deteriorates, the likelihood for a disorderly decline in the U.S. dollar increases. So, China wants a change.

The Japanese, who also have the same export orientation, making them the second largest holder of U.S. treasury assets, have come America’s defense.

]]> Sun, 05 Jul 2009 10:08:03 -0400 Edward Harrison Edward Harrison submits:

In the lead-up to next week’s G8 summit, the Chinese have been making yet more noises about setting up a new monetary system without the dollar as its anchor and leading reserve currency. The Chinese, who have maintained a export orientation which has made them the largest holder of U.S. government bonds, are concerned that they are holding depreciating assets. As the U.S. economic and fiscal position deteriorates, the likelihood for a disorderly decline in the U.S. dollar increases. So, China wants a change.

The Japanese, who also have the same export orientation, making them the second largest holder of U.S. treasury assets, have come America’s defense.


Complete Story »]]> UDN UUP Edward Harrison The U.S. Bailout Circus Is Just Getting Started http://seekingalpha.com/article/146972-the-u-s-bailout-circus-is-just-getting-started?source=feed 146972 Since the last week of June, the stock market has whipsawed in a tight range. Gone is the hot-headed exuberance but neither has a drastic correction materialize. Some bulls are still holding the fort amid a thin market volume, but deciphering market sentiment is difficult as false signals can be easily generated by a few market participants.

Not surprisingly, a cautious mood has descended on investors as they await the next major move in the stock market. During this lacklustre period (a good excuse for not updating this blog), what gives for July? For one thing, there is the hugely anticipated second quarter earnings reports which will either lend credence to green shoots theory or spark a fresh round of selling as optimism is shown to have overtaken reality by a mile.

]]> Sun, 05 Jul 2009 07:26:52 -0400 Jeflin's Investments Jeflin's Investments submits:

Since the last week of June, the stock market has whipsawed in a tight range. Gone is the hot-headed exuberance but neither has a drastic correction materialize. Some bulls are still holding the fort amid a thin market volume, but deciphering market sentiment is difficult as false signals can be easily generated by a few market participants.

Not surprisingly, a cautious mood has descended on investors as they await the next major move in the stock market. During this lacklustre period (a good excuse for not updating this blog), what gives for July? For one thing, there is the hugely anticipated second quarter earnings reports which will either lend credence to green shoots theory or spark a fresh round of selling as optimism is shown to have overtaken reality by a mile.


Complete Story »]]> EWJ FXI GLD RSX Jeflin's Investments End of an Era for Japanese FX Leverage? http://seekingalpha.com/article/146727-end-of-an-era-for-japanese-fx-leverage?source=feed 146727 Japan's Financial Service Agency will reportedly will limit the amount leveraging available to retail foreign exchange participants, who according to estimates account for around a quarter of the daily turnover in Tokyo, which according the the BIS survey averaged about $302 bln a day.

The FSA plans call for capping leverage starting next year at 50-times and then cutting it to 25-times at the start of 2011. Currently, reports suggest that leverage is possible up to 400-times currently at some firms. Japan had de-regulated retail foreign exchange margin (leverage) trading nearly ten years and it has help bolster the activity. A private survey, reported in the some news accounts, found that up to 20% of those with margin accounts indicated that the caps on leverage may prompt them to quit.

]]> Thu, 02 Jul 2009 11:57:31 -0400 Marc Chandler Marc Chandler submits:

Japan's Financial Service Agency will reportedly will limit the amount leveraging available to retail foreign exchange participants, who according to estimates account for around a quarter of the daily turnover in Tokyo, which according the the BIS survey averaged about $302 bln a day.

The FSA plans call for capping leverage starting next year at 50-times and then cutting it to 25-times at the start of 2011. Currently, reports suggest that leverage is possible up to 400-times currently at some firms. Japan had de-regulated retail foreign exchange margin (leverage) trading nearly ten years and it has help bolster the activity. A private survey, reported in the some news accounts, found that up to 20% of those with margin accounts indicated that the caps on leverage may prompt them to quit.


Complete Story »]]> EWJ Marc Chandler Asian Markets Continue Downside Momentum http://seekingalpha.com/article/146441-asian-markets-continue-downside-momentum?source=feed 146441 Asian markets are trading in the red, following the negative sentiment seen during the U.S. session. Consequently, most Asian based indexes moved lower on Wednesday.

Asian markets were struck by a number of negative events tonight. The first and probably the most important was the Japanese Tankan manufacturing report, which failed to reach market expectations. The quarterly report showed that the manufacturing side of the economy is still in a strong contraction phase, something that would ultimately prolong Japan’s recovery.

]]> Wed, 01 Jul 2009 08:17:42 -0400 TheLFB The LFB submits:

Asian markets are trading in the red, following the negative sentiment seen during the U.S. session. Consequently, most Asian based indexes moved lower on Wednesday.

Asian markets were struck by a number of negative events tonight. The first and probably the most important was the Japanese Tankan manufacturing report, which failed to reach market expectations. The quarterly report showed that the manufacturing side of the economy is still in a strong contraction phase, something that would ultimately prolong Japan’s recovery.


Complete Story »]]> AAXJ ASIA EWH EWJ EWT FXI TM TheLFB Unemployment in Japan Will Be Above 6% by August http://seekingalpha.com/article/146310-unemployment-in-japan-will-be-above-6-by-august?source=feed 146310 Since the beginning of 2009, the unemployment rate in Japan has been on rise. The Statistical Bureau of Japan has just announced a severe increase in the (seasonally adjusted) unemployment rate up to 5.2% in May. There was only 4.1% unemployment in December 2008.

We had predicted that effect in our early paper [1] and confirmed the prediction in the detailed study of unemployment in Japan [2]. The most recent estimate of the linear link between the unemployment rate and the change in the labor force participation level gave the following relationship:
UE(t)= -1.5*dLF(t)/LF(t) +0.045 (1)
where UE is the unemployment rate at time t, LF is the level of labor force at the same time. Thus, there is no time delay between the change in the LF and UE, as it observed in many developed countries [3,4].
As with any quantitative prediction of future time series, one can check and validate the underlying relationship using new data. Figure 1 compares the measured unemployment rate in Japan to that predicted from (1). Relevant labor force estimates are also retrieved from the Statistical Bureau's table.
Between 1999 and 2008, the prediction is excellent considering the accuracy of both unemployment and labor force measurements. The deviation between the curves observed in 2008 is the largest. However, it does not influence the accuracy of the 2009 prediction, which is definitely outstanding in terms of dynamic resolution. The dramatic increase in unemployment rate is well predicted by relevant fall in the level of labor force; the slope in (1) is negative. Because of the absence of time delay between these two variables, it is difficult to distinguish between action and reaction. Our previous investigations indicate that the change in labor force in the primary source of the change in unemployment and inflation [3,4].
Figure 1 demonstrates that the rise in unemployment is not finished yet and it may reach 6% in August 2009. Since the labor force estimates are contemporary to the unemployment one, we can not stretch them into 2010. However, labor force projections for Japan show that the unemployment will approach 5% in the long run, as depicted in Figure 2 borrowed from [2].

Figure 1. Comparison of observed and predicted unemployment rate in Japan.

]]> Tue, 30 Jun 2009 17:21:00 -0400 Ivan Kitov Ivan Kitov submits:

Since the beginning of 2009, the unemployment rate in Japan has been on rise. The Statistical Bureau of Japan has just announced a severe increase in the (seasonally adjusted) unemployment rate up to 5.2% in May. There was only 4.1% unemployment in December 2008.

We had predicted that effect in our early paper [1] and confirmed the prediction in the detailed study of unemployment in Japan [2]. The most recent estimate of the linear link between the unemployment rate and the change in the labor force participation level gave the following relationship:
UE(t)= -1.5*dLF(t)/LF(t) +0.045 (1)
where UE is the unemployment rate at time t, LF is the level of labor force at the same time. Thus, there is no time delay between the change in the LF and UE, as it observed in many developed countries [3,4].
As with any quantitative prediction of future time series, one can check and validate the underlying relationship using new data. Figure 1 compares the measured unemployment rate in Japan to that predicted from (1). Relevant labor force estimates are also retrieved from the Statistical Bureau's table.
Between 1999 and 2008, the prediction is excellent considering the accuracy of both unemployment and labor force measurements. The deviation between the curves observed in 2008 is the largest. However, it does not influence the accuracy of the 2009 prediction, which is definitely outstanding in terms of dynamic resolution. The dramatic increase in unemployment rate is well predicted by relevant fall in the level of labor force; the slope in (1) is negative. Because of the absence of time delay between these two variables, it is difficult to distinguish between action and reaction. Our previous investigations indicate that the change in labor force in the primary source of the change in unemployment and inflation [3,4].
Figure 1 demonstrates that the rise in unemployment is not finished yet and it may reach 6% in August 2009. Since the labor force estimates are contemporary to the unemployment one, we can not stretch them into 2010. However, labor force projections for Japan show that the unemployment will approach 5% in the long run, as depicted in Figure 2 borrowed from [2].

Figure 1. Comparison of observed and predicted unemployment rate in Japan.


Complete Story »]]> EWJ Ivan Kitov Asia Tech Stock Weekly Summary (June 22 - 28, 2009) http://seekingalpha.com/article/146157-asia-tech-stock-weekly-summary-june-22-28-2009?source=feed 146157 Japan

Hardware

• Suning Appliance will pay 800 million yen (US$8.4million) for 27.36 percent of Laox, making it the loss-making Japanese electronics retailer's biggest shareholder. Suning will pay 12 yen for each of 66.67 million shares and get two seats on the Laox board. Chinese firms have been looking for bargains in their efforts to expand abroad, but Suning said this was the first time a mainland firm had purchased a stake in a listed Japanese company. Suning hoped to return the flagging Laox to profitability within a year or 18 months. Laox was once among Japan's leading retailers of consumer electronics. At its peak in the business year to March 2001, the firm had revenues of 214 billion yen and ran about 120 stores nationwide. It has been losing market share to bigger rivals like industry leader Yamada Denki, and forecast a ninth consecutive year of net losses and revenue of 13.2 billion yen (US$139 million) for the year to March.
• Norio Sasaki, the new president of Toshiba Corp. (TOSBF.PK), said he aims to boost the company's capital adequacy ratio, which dropped below 14 percent earlier this year, to 30 percent during his tenure as he embarks on the challenge of bringing the electronics giant back into profitability. Sasaki, the 60-year-old former vice president of the company, officially took the helm of the struggling tech giant, which fell deeply into the red for the first time in seven years with its biggest-ever group net loss of more than 340 billion yen in fiscal 2008 ended in March. The company is aiming to return to the black with an operating profit of 100 billion yen (US$1.1 billion) for the current business year. Toshiba's capital adequacy ratio, including minority equity, plunged to 13.9 percent at the end of March, but now stands at around 19 percent after the company raised around 500 billion yen (US$5.3 billion) in capital through public stock and subordinated bond offerings. Toshiba plans to rebuild the system LSI operations by focusing resources on profitable products, emphasizing that a spin-off is only a means and not an objective.

Telecommunications

• Softbank Corp. (SFBTF.PK) plans to go national next month with sales of Flet's Hikari-branded fiber-optic broadband services from the Nippon Telegraph and Telephone Corp. (NTT) group. The decision effectively marks the end of Softbank's challenge to NTT. In 2004, Softbank launched a high-speed fiber-optic service under the Yahoo BB brand by leasing circuits from the NTT group. Softbank eventually gave in because of high leasing fees, starting to act as a sales agent for Flet's Hikari services in 10 prefectures in February. The company now plans to increase the prefectures to 34 this month and to all 47 in Japan on July 1. For customers who sign up for Flet's Hikari services through Softbank, the infrastructure portion is provided by NTT East Corp. or NTT West Corp., depending on the subscriber's location, while the service portion is handled by Softbank. And for each new subscriber, Softbank receives a sales commission as well as a portion of the monthly charge. The latter comes to 1,296 yen for a subscriber living in a single-family home. Fees and charges are the same whether the customer signs up through Softbank or the NTT group.
• KDDI Corp. (KDDIF.PK) reported that its net profit for the fiscal year climbed 2.3 percent but failed to meet market expectations as a 32 percent year-on-year drop in the number of handsets sold at the company's mobile business prompted a decline in revenue. The telecom company reported fiscal 2009 net income of 222.7 billion yen (US$2.27 billion) for the year ended March 31. That compared with a net income of 217.8 billion yen (US$2.22 billion) for fiscal 2008. Analysts had expected a net profit of 261.0 billion yen (US$2.66 billion) for the recently-ended fiscal year. However, for the recent January-March quarter, KDDI swung to a loss of 31.2 billion yen (US$0.32 billion). At the same time a year ago, it earned 3.0 billion yen. Operating revenue for the fiscal year fell to 3.5 trillion yen (US$36.7 billion).

Semiconductor

• AU Optronics Corp. (AUO) will buy a 50 percent share in polycrystalline silicon maker M. Setek Co., Ltd. of Japan for US$125 million. The acquisition will offer AUO access to the solar-energy business, which the LCD maker has been watching for a while. The company chairman, K.Y. Lee, said green-energy industries have become attractive to big enterprises, with energy saving and clean energy emerging as trends. AUO, Taiwan’s No.1 manufacturer of thin-film transistor liquid-crystal display (TFT-LCD) panels, will become another major Taiwanese enterprise to enter into the solar-energy industry, trailing heavyweights such as Taiwan Semiconductor Manufacturing Corp. (TSM), Formosa Plastics Corp. and Tatung Corp. Founded to produce monocrystalline-silicon wafers, M. Setek recently diversified into production of polycrystalline silicon. The company now puts out 3,000 metric tons of polycrystalline silicon a year, enough for making 300 megawatts of solar cells.
• Toshiba Corp. has developed a simulation tool that can help improve yield when manufacturing semiconductor devices with a 40nm design rule. To improve the performance of transistors fabricated with 40nm circuit widths, the silicon wafer is subjected to high pressure and then instantly heated to around 1,000 degrees Celsius. During heating, the silicon expands, which can cause tiny crystal fissures and other defects that lower the yield of good chips. Toshiba has developed software to simulate the process and predict the occurrence of crystal defects. With this information in hand, the transistors can be redesigned and the simulation run again and again until the defect rate is reduced and the yield boosted to nearly 100 percent. Using this software, Toshiba was able to determine that almost no crystal defects would occur if the surface area of the silicon-germanium pushing against the silicon in the transistor was reduced by 78 percent. The company calculates that 40nm SRAM could be made with a 100 percent yield by introducing this design change.
• Japan's leading semiconductor trading firms are racing to lower their marketing and administrative costs in order to wring out more profits amid stagnant demand and shrinking revenues in the year through March 2010. The global recession has cooled demand for semiconductors and kept the secondary market in a slump. Foreign chip trading companies such as Avnet Inc. are broadening their reach and ratcheting up the competition. And as chipmakers reorganize, typified by next April's planned merger between NEC Electronics Corp. (NELTY.PK) and Renesas Technology Corp., semiconductor traders also face more streamlined sales routes. Against this backdrop, the various trading firms are rushing to slash their administrative costs. The effort is particularly apparent among those that count on NEC Electronics for much of their business. Ryosan Co. is reducing such costs by 14 percent to 11.5 billion yen (US$120.71 million) by controlling personnel expenses and by merging and closing bases.
• Elpida Memory Inc. (ELPDF.PK) has applied for a new government financial aid program in a bid to shore up its financial health to ride out a severe industry downturn. Elpida is expected to obtain the government's approval by the end of this month, at the earliest, to become the first company to receive a capital injection under the new corporate rescue program. The move is likely to prompt other struggling electronics makers to seek such government-backed rehabilitation measures. Elpida sought the use of de facto public funds as it sank into the red from the erosion of chip prices and stagnant demand caused by the global economic turmoil.

Alternative Energy

• Sanyo Electric Co. (SANYY.PK) will spend 7.8 billion yen (US$81.9 million) to increase output capacity for solar cells at a Shimane Prefecture facility by about 70 percent next April. The firm plans to boost production of its HIT solar cells, which are a hybrid of crystalline and thin-film technologies. It foresees growth in demand for solar power generation systems on the back of economic stimulus spending by various countries.

Internet

• Sony Corp. (SNE) group Internet service company So-net Entertainment Corp. will remove DeNA Co., which operates major cellular phone Internet sites, from its list of equity-method affiliates as of July 1. The move coincides with the scheduled departure at month's end of a director So-net sent to DeNA, and the subsequent loss of its influence in the affiliate's operations. So-net will remain the top shareholder, with its stake unchanged at 16.9 percent. DeNA added slightly more than 1.3 billion yen (US$13.5 million) to So-net's consolidated profit in the year ended March 31. For the current year, So-net's projection as of May 12 shows a 17 percent increase in group pretax profit to 7.8 billion yen (US$82 million). This figure is believed to have already excluded any profit contribution from DeNA.

China

Internet

• Focus Media (FMCN) said that the merger between Focus Media and Sina Corp. (SINA) is not as optimistic as expected, and that China's Ministry of Commerce has not yet formally accepted the case. Even if the merger fails, the parties will maintain their good business cooperation, Focus Media spokesman Ji Hairong said. Sina remarked to The Beijing News that that everything was still going through the channels. Sohu (SOHU) quoted an investment bank insider on June 23 as saying that the merger between Sina and Focus Media has broken down due to problems with the transaction process rather than government hurdles.

Telecommunications

• China United Network Communications Group Company Ltd. (China Unicom) (CHU) will invest 40 billion yuan (US$5.88 billion) in Henan province in the next five years on its 3G mobile network and fixed-line broadband transmission infrastructure. The investment is part of a strategic alliance China Unicom has reached with Henan to enhance the province's information technology infrastructure.
•China Unicom (Hong Kong) Limited had a net increase of 682,000 GSM users in May 2009, dropping 40.2 percent from 1.141 million in April 2009 and 37.5 percent from 1.091 million in May 2008. China Mobile Ltd. (CHL) lured 5.118 million new mobile phone subscribers this May, down 12.1 percent from the previous month; and China Telecom Corporation Ltd. (CHA) saw a net increase of 2.2 million. China Mobile held a 64 percent share of the newly-added user base, down 1.9 percentage points; China Telecom snatched a 27.5 percent share, up 6.3 percentage points; and China Unicom took an 8.5 percent share, down 4.4 percentage points. China had a net increase of 36.449 million phone users in January-May 2009, driving the total number to 1.02 billion. In detail, fixed-line phone subscribers reduced 9.27 million to 332 million but mobile phone users rose 45.719 million to 687 million.
• China Telecom Corp. is in talks with Research In Motion Ltd. (RIMM) to offer Blackberry devices in China. The two companies are currently conducting tests on the devices and a schedule for the launch has not been determined yet. A RIM spokeswoman said the company doesn’t comment on market rumors.
• AsiaInfo Holdings (ASIA), a provider of telecom software solutions, won a bid for establishing a new charging system for China Mobile's Beijing branch to support its prepayment business. Zhang Zhenqing, CEO of AsiaInfo said that with intensive competition in China's telecom industry, telecom operators have to modernize their charging and operation support system to offer various services including fixed-line, broadband, and mobile, to meet customers' demand. AsiaInfo’s products could help them realize their targets by providing real-time data collection, cost calculation, and payment functions under a stable and customer-friendly environment while supporting all the features of current systems.
• CITIC 1616 Holdings Ltd, the telecoms service unit of Beijing backed CITIC Pacific, is seeking to buy international direct dialing (IDD) and mobile value-added service assets in the Asia-Pacific region by the end of 2009. However, the company, has no intention of introducing Chinese telecoms operators as strategic investors, said chief financial officer David Chan. Chan added that CITIC 1616 was interested in buying or consolidating IDD, mobile value-added services and integrated virtual private network businesses and was open to investment opportunities in Southeast Asia, and in particular Taiwan. The company, which provides international roaming voice, short messaging, mobile value-added services and virtual private network services to telecoms operators around the world, posted net profit growth of 26 percent in 2008.

Media, Entertainment and Gaming

• Perfect World (PWRD) announced that it has increased second quarter 2009 guidance by 15-20 percent, to between 489-510 million yuan (US$5.1-5.4 million). The company previously forecast second quarter revenue between RMB 417-434 million (US$4.4-4.6 million), for a quarterly change of -2 percent to 2 percent. Perfect World credited the revision to the strong performance of its in-house developed 2.5D MMORPG Battle of the Immortals, especially in the last month, expansion packs for existing games in the second half of the quarter, and diversification of its game portfolio and technology investment.
• Changyou.com Limited (CYOU) announced its unaudited financial results for the first quarter ended March 31, 2009. Total revenues reached a record of US$61.6 million, an increase of 6 percent quarter-over-quarter and 50 percent year-over-year. GAAP net income reached a record of US$33.5 million, an increase of 15 percent quarter-over-quarter and 120 percent year-over-year. Non-GAAP net income reached a record of US$34.4 million, an increase of 13 percent quarter-over-quarter and 100 percent year-over-year. Non-GAAP fully diluted earnings per American depositary share were US$0.72, compared to US$0.64 in the fourth quarter of 2008 and US$0.36 in the first quarter of 2008. Aggregate peak concurrent users for Changyou MMORPGs grew 16 percent quarter-over-quarter and 47 percent year-over-year to 970,000. Active paying accounts for MMORPGs grew 14 percent quarter-over-quarter and 50 percent year-over-year to 2.27 million.

Hardware

• Lenovo Group (LNVGY.PK) plans to expand its presence in the gaming computer market by targeting serious gamers in an effort to push up sales. The company plans to release a series of new gaming computers in the next few months to win more Chinese gamers, a group who are expected to reach 100 million by the end of this year. Lenovo's gaming computers, which are mainly sold between 4,000 yuan (US$585.2) to 7,000 yuan (US$1024), account for 17 to 20 percent of the company's total sales. The company plans to release a series of gaming desktops, laptops, and all-in-one computers in the following months. The global economic downturn had impacted consumers and companies across the world, dragging down global PC shipments by seven percent during the first three months of 2009. That has made the world's major PC makers strive to release new products aimed at stimulating consumer demand for technology products.
• Canon (CAJ) China predicted that its overall revenue will increase by 20 percent in 2009 and that revenues from the East China region may grow even more, benefiting from the rising demand for electronic gadgets such as cameras and video recorders. The company also hopes that the Expo will boost Canon's sales of multi-functional printers. Canon recorded a 50 percent month-on-month growth in sales of high-end digital cameras in China, said Hideki Ozawa, Canon's chief president in China, adding that some camera models were in short supply this year. Canon also plans to double its copy machine marketing network in China as it looks to boost sales in that growing market. The company is expanding its sales network to midsize and small cities in such provinces as Sichuan in China's interior, aiming to have 1,000 stores selling its copy machines within two years. Because the Chinese government is increasing public works spending in the interior, the purchasing power of residents there is expected to increase.

Alternative Energy

• GCL-Poly Energy Holdings Ltd. plans to spend HK$26.35 billion (US$3.4 billion) to purchase a 100 percent stake in a Chinese polysilicon producer, Jiangsu Zhongneng Polysilicon Technology Development Co, sources reported. The company, which is engaged in the development of cogeneration and power plants as well as coal trading in China, will pay HK$19.91 billion (US$2.6 billion) to Chairman Zhu Gongshan and relevant parties through the issuance of 9.05 billion new shares at an average price of HK$2.2 (US$.28), which is a 12 percent discount. The new shares will be equivalent to 885 percent of the current total equity and will account for 81.82 percent of the enlarged equity. The cogeneration plant operator will pay Zhu the remaining HK$6.44 billion (US$830 million), of which the firm will pay US$200 million in cash.
]]> Tue, 30 Jun 2009 09:52:43 -0400 IRG Japan

Hardware

• Suning Appliance will pay 800 million yen (US$8.4million) for 27.36 percent of Laox, making it the loss-making Japanese electronics retailer's biggest shareholder. Suning will pay 12 yen for each of 66.67 million shares and get two seats on the Laox board. Chinese firms have been looking for bargains in their efforts to expand abroad, but Suning said this was the first time a mainland firm had purchased a stake in a listed Japanese company. Suning hoped to return the flagging Laox to profitability within a year or 18 months. Laox was once among Japan's leading retailers of consumer electronics. At its peak in the business year to March 2001, the firm had revenues of 214 billion yen and ran about 120 stores nationwide. It has been losing market share to bigger rivals like industry leader Yamada Denki, and forecast a ninth consecutive year of net losses and revenue of 13.2 billion yen (US$139 million) for the year to March.
• Norio Sasaki, the new president of Toshiba Corp. (TOSBF.PK), said he aims to boost the company's capital adequacy ratio, which dropped below 14 percent earlier this year, to 30 percent during his tenure as he embarks on the challenge of bringing the electronics giant back into profitability. Sasaki, the 60-year-old former vice president of the company, officially took the helm of the struggling tech giant, which fell deeply into the red for the first time in seven years with its biggest-ever group net loss of more than 340 billion yen in fiscal 2008 ended in March. The company is aiming to return to the black with an operating profit of 100 billion yen (US$1.1 billion) for the current business year. Toshiba's capital adequacy ratio, including minority equity, plunged to 13.9 percent at the end of March, but now stands at around 19 percent after the company raised around 500 billion yen (US$5.3 billion) in capital through public stock and subordinated bond offerings. Toshiba plans to rebuild the system LSI operations by focusing resources on profitable products, emphasizing that a spin-off is only a means and not an objective.

Telecommunications

• Softbank Corp. (SFBTF.PK) plans to go national next month with sales of Flet's Hikari-branded fiber-optic broadband services from the Nippon Telegraph and Telephone Corp. (NTT) group. The decision effectively marks the end of Softbank's challenge to NTT. In 2004, Softbank launched a high-speed fiber-optic service under the Yahoo BB brand by leasing circuits from the NTT group. Softbank eventually gave in because of high leasing fees, starting to act as a sales agent for Flet's Hikari services in 10 prefectures in February. The company now plans to increase the prefectures to 34 this month and to all 47 in Japan on July 1. For customers who sign up for Flet's Hikari services through Softbank, the infrastructure portion is provided by NTT East Corp. or NTT West Corp., depending on the subscriber's location, while the service portion is handled by Softbank. And for each new subscriber, Softbank receives a sales commission as well as a portion of the monthly charge. The latter comes to 1,296 yen for a subscriber living in a single-family home. Fees and charges are the same whether the customer signs up through Softbank or the NTT group.
• KDDI Corp. (KDDIF.PK) reported that its net profit for the fiscal year climbed 2.3 percent but failed to meet market expectations as a 32 percent year-on-year drop in the number of handsets sold at the company's mobile business prompted a decline in revenue. The telecom company reported fiscal 2009 net income of 222.7 billion yen (US$2.27 billion) for the year ended March 31. That compared with a net income of 217.8 billion yen (US$2.22 billion) for fiscal 2008. Analysts had expected a net profit of 261.0 billion yen (US$2.66 billion) for the recently-ended fiscal year. However, for the recent January-March quarter, KDDI swung to a loss of 31.2 billion yen (US$0.32 billion). At the same time a year ago, it earned 3.0 billion yen. Operating revenue for the fiscal year fell to 3.5 trillion yen (US$36.7 billion).

Semiconductor

• AU Optronics Corp. (AUO) will buy a 50 percent share in polycrystalline silicon maker M. Setek Co., Ltd. of Japan for US$125 million. The acquisition will offer AUO access to the solar-energy business, which the LCD maker has been watching for a while. The company chairman, K.Y. Lee, said green-energy industries have become attractive to big enterprises, with energy saving and clean energy emerging as trends. AUO, Taiwan’s No.1 manufacturer of thin-film transistor liquid-crystal display (TFT-LCD) panels, will become another major Taiwanese enterprise to enter into the solar-energy industry, trailing heavyweights such as Taiwan Semiconductor Manufacturing Corp. (TSM), Formosa Plastics Corp. and Tatung Corp. Founded to produce monocrystalline-silicon wafers, M. Setek recently diversified into production of polycrystalline silicon. The company now puts out 3,000 metric tons of polycrystalline silicon a year, enough for making 300 megawatts of solar cells.
• Toshiba Corp. has developed a simulation tool that can help improve yield when manufacturing semiconductor devices with a 40nm design rule. To improve the performance of transistors fabricated with 40nm circuit widths, the silicon wafer is subjected to high pressure and then instantly heated to around 1,000 degrees Celsius. During heating, the silicon expands, which can cause tiny crystal fissures and other defects that lower the yield of good chips. Toshiba has developed software to simulate the process and predict the occurrence of crystal defects. With this information in hand, the transistors can be redesigned and the simulation run again and again until the defect rate is reduced and the yield boosted to nearly 100 percent. Using this software, Toshiba was able to determine that almost no crystal defects would occur if the surface area of the silicon-germanium pushing against the silicon in the transistor was reduced by 78 percent. The company calculates that 40nm SRAM could be made with a 100 percent yield by introducing this design change.
• Japan's leading semiconductor trading firms are racing to lower their marketing and administrative costs in order to wring out more profits amid stagnant demand and shrinking revenues in the year through March 2010. The global recession has cooled demand for semiconductors and kept the secondary market in a slump. Foreign chip trading companies such as Avnet Inc. are broadening their reach and ratcheting up the competition. And as chipmakers reorganize, typified by next April's planned merger between NEC Electronics Corp. (NELTY.PK) and Renesas Technology Corp., semiconductor traders also face more streamlined sales routes. Against this backdrop, the various trading firms are rushing to slash their administrative costs. The effort is particularly apparent among those that count on NEC Electronics for much of their business. Ryosan Co. is reducing such costs by 14 percent to 11.5 billion yen (US$120.71 million) by controlling personnel expenses and by merging and closing bases.
• Elpida Memory Inc. (ELPDF.PK) has applied for a new government financial aid program in a bid to shore up its financial health to ride out a severe industry downturn. Elpida is expected to obtain the government's approval by the end of this month, at the earliest, to become the first company to receive a capital injection under the new corporate rescue program. The move is likely to prompt other struggling electronics makers to seek such government-backed rehabilitation measures. Elpida sought the use of de facto public funds as it sank into the red from the erosion of chip prices and stagnant demand caused by the global economic turmoil.

Alternative Energy

• Sanyo Electric Co. (SANYY.PK) will spend 7.8 billion yen (US$81.9 million) to increase output capacity for solar cells at a Shimane Prefecture facility by about 70 percent next April. The firm plans to boost production of its HIT solar cells, which are a hybrid of crystalline and thin-film technologies. It foresees growth in demand for solar power generation systems on the back of economic stimulus spending by various countries.

Internet

• Sony Corp. (SNE) group Internet service company So-net Entertainment Corp. will remove DeNA Co., which operates major cellular phone Internet sites, from its list of equity-method affiliates as of July 1. The move coincides with the scheduled departure at month's end of a director So-net sent to DeNA, and the subsequent loss of its influence in the affiliate's operations. So-net will remain the top shareholder, with its stake unchanged at 16.9 percent. DeNA added slightly more than 1.3 billion yen (US$13.5 million) to So-net's consolidated profit in the year ended March 31. For the current year, So-net's projection as of May 12 shows a 17 percent increase in group pretax profit to 7.8 billion yen (US$82 million). This figure is believed to have already excluded any profit contribution from DeNA.

China

Internet

• Focus Media (FMCN) said that the merger between Focus Media and Sina Corp. (SINA) is not as optimistic as expected, and that China's Ministry of Commerce has not yet formally accepted the case. Even if the merger fails, the parties will maintain their good business cooperation, Focus Media spokesman Ji Hairong said. Sina remarked to The Beijing News that that everything was still going through the channels. Sohu (SOHU) quoted an investment bank insider on June 23 as saying that the merger between Sina and Focus Media has broken down due to problems with the transaction process rather than government hurdles.

Telecommunications

• China United Network Communications Group Company Ltd. (China Unicom) (CHU) will invest 40 billion yuan (US$5.88 billion) in Henan province in the next five years on its 3G mobile network and fixed-line broadband transmission infrastructure. The investment is part of a strategic alliance China Unicom has reached with Henan to enhance the province's information technology infrastructure.
•China Unicom (Hong Kong) Limited had a net increase of 682,000 GSM users in May 2009, dropping 40.2 percent from 1.141 million in April 2009 and 37.5 percent from 1.091 million in May 2008. China Mobile Ltd. (CHL) lured 5.118 million new mobile phone subscribers this May, down 12.1 percent from the previous month; and China Telecom Corporation Ltd. (CHA) saw a net increase of 2.2 million. China Mobile held a 64 percent share of the newly-added user base, down 1.9 percentage points; China Telecom snatched a 27.5 percent share, up 6.3 percentage points; and China Unicom took an 8.5 percent share, down 4.4 percentage points. China had a net increase of 36.449 million phone users in January-May 2009, driving the total number to 1.02 billion. In detail, fixed-line phone subscribers reduced 9.27 million to 332 million but mobile phone users rose 45.719 million to 687 million.
• China Telecom Corp. is in talks with Research In Motion Ltd. (RIMM) to offer Blackberry devices in China. The two companies are currently conducting tests on the devices and a schedule for the launch has not been determined yet. A RIM spokeswoman said the company doesn’t comment on market rumors.
• AsiaInfo Holdings (ASIA), a provider of telecom software solutions, won a bid for establishing a new charging system for China Mobile's Beijing branch to support its prepayment business. Zhang Zhenqing, CEO of AsiaInfo said that with intensive competition in China's telecom industry, telecom operators have to modernize their charging and operation support system to offer various services including fixed-line, broadband, and mobile, to meet customers' demand. AsiaInfo’s products could help them realize their targets by providing real-time data collection, cost calculation, and payment functions under a stable and customer-friendly environment while supporting all the features of current systems.
• CITIC 1616 Holdings Ltd, the telecoms service unit of Beijing backed CITIC Pacific, is seeking to buy international direct dialing (IDD) and mobile value-added service assets in the Asia-Pacific region by the end of 2009. However, the company, has no intention of introducing Chinese telecoms operators as strategic investors, said chief financial officer David Chan. Chan added that CITIC 1616 was interested in buying or consolidating IDD, mobile value-added services and integrated virtual private network businesses and was open to investment opportunities in Southeast Asia, and in particular Taiwan. The company, which provides international roaming voice, short messaging, mobile value-added services and virtual private network services to telecoms operators around the world, posted net profit growth of 26 percent in 2008.

Media, Entertainment and Gaming

• Perfect World (PWRD) announced that it has increased second quarter 2009 guidance by 15-20 percent, to between 489-510 million yuan (US$5.1-5.4 million). The company previously forecast second quarter revenue between RMB 417-434 million (US$4.4-4.6 million), for a quarterly change of -2 percent to 2 percent. Perfect World credited the revision to the strong performance of its in-house developed 2.5D MMORPG Battle of the Immortals, especially in the last month, expansion packs for existing games in the second half of the quarter, and diversification of its game portfolio and technology investment.
• Changyou.com Limited (CYOU) announced its unaudited financial results for the first quarter ended March 31, 2009. Total revenues reached a record of US$61.6 million, an increase of 6 percent quarter-over-quarter and 50 percent year-over-year. GAAP net income reached a record of US$33.5 million, an increase of 15 percent quarter-over-quarter and 120 percent year-over-year. Non-GAAP net income reached a record of US$34.4 million, an increase of 13 percent quarter-over-quarter and 100 percent year-over-year. Non-GAAP fully diluted earnings per American depositary share were US$0.72, compared to US$0.64 in the fourth quarter of 2008 and US$0.36 in the first quarter of 2008. Aggregate peak concurrent users for Changyou MMORPGs grew 16 percent quarter-over-quarter and 47 percent year-over-year to 970,000. Active paying accounts for MMORPGs grew 14 percent quarter-over-quarter and 50 percent year-over-year to 2.27 million.

Hardware

• Lenovo Group (LNVGY.PK) plans to expand its presence in the gaming computer market by targeting serious gamers in an effort to push up sales. The company plans to release a series of new gaming computers in the next few months to win more Chinese gamers, a group who are expected to reach 100 million by the end of this year. Lenovo's gaming computers, which are mainly sold between 4,000 yuan (US$585.2) to 7,000 yuan (US$1024), account for 17 to 20 percent of the company's total sales. The company plans to release a series of gaming desktops, laptops, and all-in-one computers in the following months. The global economic downturn had impacted consumers and companies across the world, dragging down global PC shipments by seven percent during the first three months of 2009. That has made the world's major PC makers strive to release new products aimed at stimulating consumer demand for technology products.
• Canon (CAJ) China predicted that its overall revenue will increase by 20 percent in 2009 and that revenues from the East China region may grow even more, benefiting from the rising demand for electronic gadgets such as cameras and video recorders. The company also hopes that the Expo will boost Canon's sales of multi-functional printers. Canon recorded a 50 percent month-on-month growth in sales of high-end digital cameras in China, said Hideki Ozawa, Canon's chief president in China, adding that some camera models were in short supply this year. Canon also plans to double its copy machine marketing network in China as it looks to boost sales in that growing market. The company is expanding its sales network to midsize and small cities in such provinces as Sichuan in China's interior, aiming to have 1,000 stores selling its copy machines within two years. Because the Chinese government is increasing public works spending in the interior, the purchasing power of residents there is expected to increase.

Alternative Energy

• GCL-Poly Energy Holdings Ltd. plans to spend HK$26.35 billion (US$3.4 billion) to purchase a 100 percent stake in a Chinese polysilicon producer, Jiangsu Zhongneng Polysilicon Technology Development Co, sources reported. The company, which is engaged in the development of cogeneration and power plants as well as coal trading in China, will pay HK$19.91 billion (US$2.6 billion) to Chairman Zhu Gongshan and relevant parties through the issuance of 9.05 billion new shares at an average price of HK$2.2 (US$.28), which is a 12 percent discount. The new shares will be equivalent to 885 percent of the current total equity and will account for 81.82 percent of the enlarged equity. The cogeneration plant operator will pay Zhu the remaining HK$6.44 billion (US$830 million), of which the firm will pay US$200 million in cash.

Complete Story »]]> ASIA AUO CAJ CHA CHL CHU CYOU ELPDF.PK FMCN KDDIF.PK LNVGY.PK NTT PWRD RIMM SANYY.PK SFBTF.PK SINA SNE TOSBF.PK IRG Japan's Most Undervalued Stocks http://seekingalpha.com/article/146215-japan-s-most-undervalued-stocks?source=feed 146215 Since 1996, The Applied Finance Group has excelled at identifying mispriced securities and helping our clients take advantage of such mispricings within the US markets. Over the last few years, AFG has been working on expanding our framework internationally to help our clients identify solid long-term equity investment opportunities on a global scale. Our global research site, AFGViewGlobal.com has coverage on over 30,000 companies with back-test results proving that the same group of variables that have proven successful on a domestic level are quite successful at identifying winners and losers all over the world.

Below is a look at the 10 most undervalued stocks in the Nikkei 225, the most widely quoted average of Japanese equities within the Tokyo Stock Exchange (TSE). According to AFG’s valuation model these companies look to be attractively priced and have considerable long-term upside. We will monitor these 10 stocks through time and compare them against the overall index and provide our performance relative to the overall index just as we have done over the last 7 months with our US Buy recommendations (see ValueExpectations.com buy/sell spread results here).

]]> Tue, 30 Jun 2009 09:38:07 -0400 Value Expectations Value Expectations submits:

Since 1996, The Applied Finance Group has excelled at identifying mispriced securities and helping our clients take advantage of such mispricings within the US markets. Over the last few years, AFG has been working on expanding our framework internationally to help our clients identify solid long-term equity investment opportunities on a global scale. Our global research site, AFGViewGlobal.com has coverage on over 30,000 companies with back-test results proving that the same group of variables that have proven successful on a domestic level are quite successful at identifying winners and losers all over the world.

Below is a look at the 10 most undervalued stocks in the Nikkei 225, the most widely quoted average of Japanese equities within the Tokyo Stock Exchange (TSE). According to AFG’s valuation model these companies look to be attractively priced and have considerable long-term upside. We will monitor these 10 stocks through time and compare them against the overall index and provide our performance relative to the overall index just as we have done over the last 7 months with our US Buy recommendations (see ValueExpectations.com buy/sell spread results here).


Complete Story »]]> EWJ EZJ Value Expectations Japanese Banks Must Improve Shareholder Relations in Order to Expand http://seekingalpha.com/article/146187-japanese-banks-must-improve-shareholder-relations-in-order-to-expand?source=feed 146187

Strong market conditions often present great opportunities to raise much-needed capital for both the ambitious and the struggling. But while opportunities for extra liquidity abound, you can get punished for taking the practice to its extreme.

]]> Tue, 30 Jun 2009 08:23:09 -0400 Daniel Harrison Daniel M. Harrison submits:

Strong market conditions often present great opportunities to raise much-needed capital for both the ambitious and the struggling. But while opportunities for extra liquidity abound, you can get punished for taking the practice to its extreme.


Complete Story »]]> DSECY GS MFG MTU NMR SMFJY.PK Daniel Harrison Asia Is Key to the Burgeoning Bull Market http://seekingalpha.com/article/146130-asia-is-key-to-the-burgeoning-bull-market?source=feed 146130 Excerpt from Raymond James strategist Jeffrey Saut's latest essay, published Monday (June 29th):

...If the markets have embarked on a new worldwide bull market the “new leaders” are likely to be emerging and frontier markets. That view was reinforced by our friends at the astute GaveKal organization, whose seminar I attended last Thursday. I love the GaveKal folks because they are truly “out of the box” thinkers; and, it is just such thinking that produces net-worth changing ideas.

]]> Tue, 30 Jun 2009 05:52:10 -0400 Jeffrey Saut Excerpt from Raymond James strategist Jeffrey Saut's latest essay:

Excerpt from Raymond James strategist Jeffrey Saut's latest essay, published Monday (June 29th):

...If the markets have embarked on a new worldwide bull market the “new leaders” are likely to be emerging and frontier markets. That view was reinforced by our friends at the astute GaveKal organization, whose seminar I attended last Thursday. I love the GaveKal folks because they are truly “out of the box” thinkers; and, it is just such thinking that produces net-worth changing ideas.


Complete Story »]]> EZJ FXI PGJ Jeffrey Saut Weaker Yen, Stronger Commodities Lift Asian Markets http://seekingalpha.com/article/146126-weaker-yen-stronger-commodities-lift-asian-markets?source=feed 146126 Asian markets are advancing at a relatively strong pace today, helped by the positive close on Wall Street yesterday.

The Japanese cash market was pulled higher primarily by the weaker yen, which helps the regional companies that have strong exposure to the foreign consumer markets, and by the gains seen in the commodity market, which aided the heavy-weighted raw material companies.

]]> Tue, 30 Jun 2009 04:14:40 -0400 TheLFB The LFB submits:

Asian markets are advancing at a relatively strong pace today, helped by the positive close on Wall Street yesterday.

The Japanese cash market was pulled higher primarily by the weaker yen, which helps the regional companies that have strong exposure to the foreign consumer markets, and by the gains seen in the commodity market, which aided the heavy-weighted raw material companies.


Complete Story »]]> ADRA ASIA EWJ FXY TheLFB Japanese Industrial Production Bounces http://seekingalpha.com/article/146116-japanese-industrial-production-bounces?source=feed 146116

Japan's industrial production surged 14% in the three months ending May 2009. That's one more green shoot that demonstrates the global economy is not in free-fall and in fact is rebounding from the sharp decline of late last year. The down-sequence goes something like this: global demand collapsed as fear of widespread bank failures swept the markets; counterparty risk blew sky-high, with the result that banks stopped writing letters of credit; without letters of credit, global trade ground to a halt; as inventories built up, production was slashed.
The up-sequence began early this year: Financial markets began to recover, as swap and credit spreads declined and liquidity returned; with counterparty risk rapidly declining, banks began writing letters of credit again; with letters of credit, global trade resumed; with confidence returning, demand started picking up; inventories began declining; and finally, with inventories declining, manufacturers are once again ramping up production.
Evidence of this process can also be found in the rise this year of the prices of commodities, energy, and equities.
]]> Tue, 30 Jun 2009 03:54:30 -0400 Calafia Beach Pundit Calafia Beach Pundit submits:

Japan's industrial production surged 14% in the three months ending May 2009. That's one more green shoot that demonstrates the global economy is not in free-fall and in fact is rebounding from the sharp decline of late last year. The down-sequence goes something like this: global demand collapsed as fear of widespread bank failures swept the markets; counterparty risk blew sky-high, with the result that banks stopped writing letters of credit; without letters of credit, global trade ground to a halt; as inventories built up, production was slashed.
The up-sequence began early this year: Financial markets began to recover, as swap and credit spreads declined and liquidity returned; with counterparty risk rapidly declining, banks began writing letters of credit again; with letters of credit, global trade resumed; with confidence returning, demand started picking up; inventories began declining; and finally, with inventories declining, manufacturers are once again ramping up production.
Evidence of this process can also be found in the rise this year of the prices of commodities, energy, and equities.

Complete Story »]]> EWJ Calafia Beach Pundit