Friday's Asia ADR Recap

Stockpickr Staff

Indian stocks were in high demand Friday despite a government report that showed inflation data hit a 13-month high. India's wholesale price index hit 6.68% for the period ended March 15, vs. estimates of 5.96%. Market players now fear that any possibility of a rate cut is off the table and a rate hike could now be in the cards for future central bank meetings.

The poor inflation data did little to keep large domestic mutual funds on the sidelines Friday. Window dressing was in full effect as funds bought across every sector to prop up their net asset valuations in front of the close of the fiscal year on March 31. The Bombay Stock Exchange Sensitive Index rose 355.73 points, or 2.2%, to 16,371.29.

In the Indian auto sector Tata Motors TTM announced it will be introducing its Xenon pick-up utility truck to the Thailand market. Tata broke the news at the Bangkok Motor Show and said it will import a knocked down kit and have it assembled at the plant of joint venture partner Thonburi Automotive Assembly.

Crisil rating agency, a division of Standard & Poor's Rating Services, cut its rating on Tata Motor's 40 billion rupees cash credit limit to AA- from AA+, on the heals of Tata's decision to buy luxury auto brands Jaguar and Land Rover from Ford Motor F. American depositary shares of Tata Motors closed higher by 1% at $15.79.

Leading Indian information technology company Satyam Computer SAY plans to continue to invest in Malaysia despite concerns over the political climate in the region, according to the Economic Times. "We are committed to growing our presence in Malaysia by embarking on an aggressive expansion initiative," said Virender Aggaarwal, director and senior vice president for Asia Pacific, Middle East, India and Africa. Shares of Satyam closed essentially flat at $22.90.

Elsewhere in the Indian technology sector, Infosys Technologies INFY announced it will be launching India's first porn-free broadband Internet services on April 1, 2008, according to tmcnet.com. Shares of Infosys finished flat at $36.30.

In the Indian banking sector, HDFC Bank HDB announced that Centurion Bank of Punjab's shareholders have approved their merger proposal, according to a filing to the Bombay Stock Exchange. Centurion will now look for approval from the Reserve Bank of India to finalize the deal. Shares of HDFC fell 1% to $101.37.

Some hot movers among Indian ADRs Friday were Sify Technologies SIFY, which added 4.5% to $4.43; Sterlite Industries SLT, which advanced 3.6% to $18.65; and Dr. Reddy's Laboratories RDY, which closed up 2.6% to $14.66.

Be sure to check out the Far East Portfolio at Stockpickr.com every night to find out which stocks in India and China are making big moves and announcing major news.

China Recap

Asian markets ripped higher Friday with stocks in both mainland China and Hong Kong registering solid gains. Rumors of a stamp-duty cut hit the Far East for the second time in two weeks -- giving investors some much needed confidence to buy equities. The Chinese government continues to neither deny nor support the rumors. Dealers in the region predict the market will give back any gains if the rumors turn out to be untrue.

Retail investors did receive some hope for government involvement in the troubled equity markets after the National Business Daily published a front-page story with the title "Saving the market would be saving China's economy."

"The Chinese government is likely to take measures, including cutting the tax on stock trading or applying more stringent criteria for initial public offerings and share placements, to prop up stocks," said Jing Ulrich, chairwoman of China equities at JPMorgan Chase.

China's Shanghai Composite Index advanced 168.65 points, or 4.9%, to 3,580.15 while Hong Kong's Hang Seng Index roared higher by 621.73 points, or 2.7%, to 23.285.95.

In the Chinese wireless sector, China Mobile CHL announced it will launch commercial trials for 3G technology-based mobile phone services based off the homegrown TD-SCDMA standard. The trials are set to launch in Beijing, Shanghai, Tianjin, Shenyang, Guangzhou, Shenzhen, Xiamen and Qinhuangdao. American depositary shares of CHL traded higher by 0.7% to $74.80.

Lazard Capital Markets started coverage on Chinese alternative energy company JA Solar JASO with a buy rating and a price target of $26 a share. "JA Solar is one of the best-positioned China-based manufacturers of primarily monocrystalline solar cells. The company has rapid expansion plans, an excellent silicon position, low processing costs, and a global reputation," Lazard analyst Sanjay Shrestha said. Shares of JA Solar finished up 6% to $19.

Lazard also slapped a hold rating on Chinese solar company Solarfun Power SOLF and raised its price target on another Chinese solar firm, ReneSola SOL, from $12 to $18 and reiterated a buy rating. ADR shares of Solarfun fell 5.8% to $12.59, and ReneSola lost 11.3% to $10.83.

Citi started coverage on Chinese online game developer Giant Interactive Group GA with a buy rating and a price target of $14. "Since its November IPO however, the shares have traded down along with the overall market and broader China Online Gaming sector. We believe the risk/reward at current levels is highly favorable given Giant's nearly $800 million in cash and the continuing strong performance of its flagship game ZT," a Citi analyst said. ADR shares of Giant rose 11% to $11.50.

China's largest Internet search engine Baidu.com BIDU is rumored to have started an open beta test for its instant messenger service Baidu Hi. The company opened up the beta to Internet experts, media groups and Baidu.com users, according to tradingmarkets.com. ADR shares of Baidu finished higher by 4.1% to $247.21.

Chinese oil and gas stocks were in play Friday after Cnooc CEO reported second-half net income that rose 14% from the previous year. Shares of CEO closed higher by 4.5% to $150.42; China Petroleum & Chemical SNP, finished higher by 6% at $87.18; and PetroChina PTR, rose 5.2% to $128.03.

Be sure to check out the Far East Portfolio at Stockpickr.com every night to find out which stocks in India and China are making big moves and announcing major news.

For more on Asia, check out Daniel Harrison's coverage at TheStreet.com

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