Friday's Asia Stocks Recap

China Recap

Asian markets fell on Friday as investors in the Far East come to grips with the reality of record crude oil prices. The credit crisis in the U.S. also weighed on Chinese shares after a bond fund run by the Carlyle Group ceased trading in Amsterdam after it failed to make margin calls. The benchmark Shanghai Composite Index fell 60.47 points, or 1.4%, to 4,300.52, and Hong Kong's Hang Seng Index declined 841 points, or 3.6%, to 22,501.33.

Chinese real estate service company E-House Holdings (EJ Quote) reported a 32% rise in fourth-quarter earnings and a 116% rise in full-year revenue due to strong sales volumes and commission rates. E-House forecasted first-quarter revenue in the range of $29 million to $32 million and full-year revenue of $210 million to $240 million, vs. Wall Street estimates of $23.5 million for the first quarter and $221.4 million for the full year. ADR shares of EJ fell 3.5% to $14.49.

Chinese music distribution firm Hurray! Holdings (HRAY Quote) announced a fourth-quarter net loss of $31.3 million, vs. a net profit of $1.6 million for the fourth-quarter of 2006. Hurray! Holding forecasted total revenue for the first-quarter 2008 to come in between the range of $13.5 million to $14.5 million.

Piper Jaffray upgraded shares of Hurray! from neutral to buy and maintained its $4 price target. Jaffray mentioned that Hurray! has the most viable long-term strategy with its move to content creation and the stock trades below its cash per share. ADR shares HRAY closed up 9% to $2.90.

China Watch: A Sizzling Brazilian Play

Chinese oil and natural gas producer Cnooc (CEO Quote) was hit with an upgrade from Goldman Sachs (GS Quote) Friday. Goldman upgraded the stock to buy from neutral citing the company's strong growth potential. ADR shares of CEO finished up 3.7% to $156.55.

Analysts at Goldman Sachs weren't so kind to Chinese energy and chemical company China Petroleum & Chemical (SNP Quote). Analyst Kelvin Koh cut his rating on SNP from buy to neutral and cut his price target from $194 to $124, citing pressures on refining margins. ADR shares of SNP closed down 5% to $95.59.

Leading the decliners among Chinese ADRs on Friday were ASAT Holdings (ASTT Quote), trading off 18% to $0.45; China Finance Online (JRJC Quote), falling 11% to $16.28; and China Digital TV Holding (STV Quote), off 8.6% to $16.78.

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.