Asian Markets Tread Water

Beijing is expected to unveil 3G wireless technology during the Olympics in 2008, although it is still not clear whether it will implement the Chinese homegrown TD-SCDMA network, or one of the two currently established versions in the West.

Among financial stocks, HSBC Holdings(HBC Quote) lost 0.75%, to HK$131.60, while Bank of China(BACHF Quote) fell 1.6%, to HK$5.68. In headline news, HSBC is pursuing a Chinese mainland listing in Shanghai, in 2008.

Other Hong Kong shares were mixed. In property stocks, Hang Lung Properties(HLPPY Quote) rose 1%, to HK$35.1, but Cheung Kong(CHEUY Quote) fell 0.2%, to HK$141.50, and Hutchison(HUWHY Quote) lost 1.8%, to HK$87.10.

Commodity stocks were broadly ahead, after a rally in the price of crude oil over the Christmas holiday, and after news that China will continue a run of imports to keep up with growth in its surging economy, in particular in copper.

PetroChina(PTR Quote) lost 0.7%, to HK$14.04, but in China, Sinopec Shanghai Petrochemical(SHL Quote) rose 5%, to 16.02 yuan, while China Shenhua Energy(CUAEF Quote) rose 0.3%, to 37.05 yuan, and Aluminum Corp of China(ACH Quote) jumped 1.4%, to 40.53 yuan. Yanzhou Coal Mining(YZC Quote) ended 0.1% ahead, at 22.09 yuan.

The gains come despite moves by Beijing to stem exports of domestic fuel, by raising export taxes, at the same time as decreasing import taxes on energy in general, says Sun Hung Kai's Pang. Combined turnover of commodity futures in China this year was 40 trillion yuan, or $5.5 trillion, vs. 21 trillion yuan, or $2.9 trillion, in 2006, according to official data released Wednesday.