Friday's Asia ADR Recap

Investor fears of another interest rate hike brought out sellers of the Indian banking ADRs in American trading on Friday. Shares of ICICI Bank(IBN Quote) dove 4.2% to $29.66, and HDFC Bank(HDB Quote) lost 1.6% to $71.56.

Infosys Technologies(INFY Quote), an Indian technology services company, announced it has inked a joint research agreement with the Institute of Information Technology Hyderabad. Under the terms of the agreement, Infosys will support research in unstructured data analytics, inference and diagnostics tools and the development of next-generation business intelligence tools at IIIT-H. Shares of Infosys rose 1% to $43.03.

Some of the few Indian ADRs to advance on Friday where Satyam Computer(SAY Quote), which rose 2.5% to $25; Wipro Limited(WIT Quote), which added 1% to $12.01; and Dr. Reddy's Laboratories(RDY Quote), which finished up 6 cents to $15.29.

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

Chinese stock markets in Hong Kong and in mainland China dove sharply Friday on rumors that the Chinese government will raise interest rates over the weekend to combat out-of-control inflation.

"The possibility that the central bank will raise interest rates is high as inflation expectations grow stronger after the government raised the prices of refined oil products and electricity," said Hu Yu, an analyst with Chinalion Securities.

Liquidity concerns delivered another blow to investor sentiment after the China Securities Regulatory Commission said it plans to review initial public offerings applications for Everbright Securities, China South Locomotive and Rolling Stock Corp on June 30. Market players are worried that a new flood of stock will tap into liquidity when the Chinese markets are already perceived to be in the danger zone.