This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Friday's Asia ADR Recap

Updated from 4:58 p.m. EDT

Stocks in India nosedived Friday as market players in the Far East reacted to hot inflation data. The wholesale price index (WPI) hit a three-year high at 7% for the 12 months ending on March 22, up sharply from the previous week's rise of 6.68%, according to the Ministry of Commerce and Industry data.

The inflation spike was mainly due to higher costs for food, vegetables, minerals, raw-materials and manufactured goods. The accelerating rise in inflation could be the nail in the coffin for a central bank rate hike or for further tightening of the money supply.

"The overall sentiment is down in the market and it knows that controlling inflation will remain a challenge," said Chetan Shah, portfolio manager at Religare Securities. The Bombay Stock Exchange Sensitive Index dove 489.43 points, or 3.1%, to 15,343.12.

US Futures Exchange (UFSE) in Chicago officially launched trading Friday for U.S.-dollar based futures that track India's Bombay Stock Exchange Sensex Index. The new futures contracts will allow market players outside of India access to the growing Indian markets. Officials said the majority of the volume for the India-based futures will come from emerging-market hedge funds, international mutual funds and strategic investors. The contract will trade 23 hours a day and have a notional value of $40,000 and a tick size of $5.

Standard & Poor's Rating Services cut Indian automaker Tata Motors' (TTM) non-investment grade corporate credit rating to BB from BB+, and said the ratings will stay on negative watch due to Tata's recent acquisition of Ford Motor's (F) luxury auto brands Jaguar and Land Rover. S&P also cut the ratings on Tata Motors' rated debt to BB from BB+. American depositary shares of Tata Motors, which trade on the New York Stock Exchange, fell 1.3% to $15.93.

Indian business process outsourcing (BPO) service firm WNS Holdings (WNS) announced it has formed a joint venture with Philippines-based BPO company Advanced Contact Solutions. The joint venture company, WNS Philippines, will be majority controlled by WNS and will market contact center services to global customers. Shares of WNS closed essentially flat at $17.34.

In the Indian technology sector, IT solutions provider I-flex Solutions announced it has inked a deal with global information technology firm Wipro Limited (WIT - Get Report) to market and support its products throughout the Middle East and Egypt. I-flex is majority-owned by American-based software giant Oracle (ORCL). Shares of Wipro fell 1% to $11.98.

Elsewhere in the Indian technology sector, Sify Technologies (SIFY) advanced 5% to $4.75; (REDF) added 3.2% to $8.87; Infosys Technologies (INFY) fell 1.5% to $36.85; and Satyam Computer (SAY) fell 2.8% to $23.56.

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

China Recap

Stock exchanges in Hong Kong, Shanghai and Taiwan were closed Friday for a public holiday. According to a report from Taipei-based newspaper the Commercial Times, Hong Kong brokerages have raised $41 billion of funds to purchase Taiwan stocks on hopes that the region's new president will be more friendly toward economic and trade relations with China.

In the Chinese solar sector, JA Solar (JASO - Get Report) was added to the Alpha List at Piper Jaffray and awarded a buy rating and a $33.50 price target. Piper said that JA Solar has the best contracted polysilicon supply over the next two years. Also, Piper believes that higher spot prices will not materially affect JA Solar's business or pricing trends. American depositary shares of JA Solar exploded higher by 16% to $22.93 on heavy volume.

Elsewhere in the Chinese alternative energy sector, LDK Solar (LDK) announced it has signed a six-year wafer supply deal with Greece's Silcio S.A. that will start in 2008. LDK also inked a deal with Canada-based Arise Corp for a four-year 33 MW silicon wafer sales agreement. Shares of LDK ripped higher by 15% to close at $36.40 on over three times average daily volume.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
LDK $0.00 0.00%
WX $0.00 0.00%
NED $2.79 0.36%
CHNR $1.43 0.00%
JASO $8.40 0.00%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs