Monday's Asia ADR Recap
Updated from 4:54 p.m. EDT
Indian equities markets surged Monday as market participants pinned their hopes on strong quarterly results from some of India's heavyweight companies. Value hunters were also out buying up fundamentally strong stocks and traders were quick to cover short positions in the face of more reasonable valuations for stocks in the region.
"In the current market scenario, most of the top stocks are trading at 15 times forward earnings. We believe that we will see some consolidation in the next 15 months as well," said S Ranganathan, head of research at LKP Securities. The Bombay Stock Exchange Sensitive Index rose 413.96 points, or 2.7%, to 15,757.08.
Indian automaker Tata Motors (TTM) announced it has raised its prices on trucks and buses by an average of 3.5% in an effort to offset surging raw material costs, according to company spokesman Debasis Ray. "Prices of raw material such as steel have shot up and we had to pass some of that to customers," Ray said. American depositary shares of Tata finished essentially flat at $16.05.
China Watch: Applied Materials' Fun in the Sun
China RecapAsian markets jumped higher Monday with stocks in Hong Kong rising for the fourth day in a row, spurred by mainland China which surged over 4%. Market players in the Far East received a vote of confidence for Chinese stocks after legendary investor Jim Rogers said he has been buying up Chinese and Taiwan shares during the last few weeks, due to their recent selloffs, and he would look to buy more if those markets fall further. In Hong Kong, the Hang Seng Index closed higher by 314.13 points, or 1.3%, to 24,578.76, and in China the Shanghai Composite Index finished up 153.37 points, or 4.45%, at 3,599.62. Leading Chinese language Internet search engine Baidu.com (BIDU) announced it has formed a strategic partnership with Chinese household electrical appliance manufacturer Qingdao Haier, to jointly promote online television services. Under the agreement, Baidu will provide Internet services like search to Haier's online television scheme, which will allow Chinese consumers access to Baidu's services via a remote control. Baidu.com and rival Internet company Sohu.com (SOHU) were hit with a copyright-infringement lawsuit for allegedly allowing illegal music downloading. The lawsuits brought by some large music labels claim $9 million in damages from Baidu.com and $7.5 million in damages from Sogou, a unit of Sohu.com, according to report in The Wall Street Journal. The suit brought against Baidu.com is being initiated by Sony BMG Music Entertainment, a joint venture of Sony (SNE), Bertelsmann AG, Time Warner's (TWX) Warner Music Hong Kong and Vivendi SA's (VIV) Universal Music. The lawsuits against Sogou included those firms and Gold Label Entertainment, a Hong Kong-based company backed by EMI Group. The suits represent the largest claim in dollar amounts ever by the music industry in China.
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