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Tuesday's Asia ADR Recap: China Mobile

The stocks from China and India making moves and news in the U.S.

Indian stocks fell for the fourth consecutive trading session Tuesday, after investors lowered their stock exposure ahead of the equity derivative contract expiration set for May 29 and new inflation data due out on Friday. Traders said rumors of a fuel-price hike also weighed on shares in the region.

"The market is under selling pressure because of the end of settlement on Thursday," said Rajesh Jain, chief executive officer at Pranav Securities. "Banking shares have been hit in particular because of fears that rising inflation will prevent the central bank from cutting interest rates."

The Bombay Stock Exchange's Sensex Index lost 72.91 points, or 0.5%, to 16,275.59. Here's a look at how some India-based American depositary shares traded in the U.S. Tuesday.

Indian global communications solution company

Tata Communications


announced it has inked a deal with United Arab Emirates-based

Emirates Telecommunications

to provide enterprise network services in the UAE, according to a joint filling. Under terms of the deal, both companies plan to provide ethernet services and other connectivity solutions across the UAE, but financial details of the agreement weren't disclosed. American depositary shares of Tata, which trade on the


, closed up 2.9% at $23.70.

Sify Technologies

(SIFY) - Get Sify Technologies Limited Report

, which provides Internet and enterprise services in India, announced the launch of its Roam Connect International service in India. The company said the new service will be powered by U.S.-based enterprise mobility services company


(IPAS) - Get iPass Inc. Report

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and will allow Sify customers to gain access to high-speed, reliable and secure wireless broadband services at more than 100,000 locations, including airports, hotels, conference centers and retail locations. Shares of Sify finished essentially flat at $4.97.

According to

, Indian information technology leader

Infosys Technologies

(INFY) - Get Infosys Limited American Depositary Shares Report

is close to signing a deal with Spain-based financial group

Banco Bilbao Vizcaya Argentaria


for the supply of its Finacle core banking technology platform, which includes wealth management applications, mobile banking solutions and a new Islamic banking option. Shares of Infosys climbed 1.9% to $43.94.

Among the worst-performing Indian ADRs Tuesday were

Icici Bank

(IBN) - Get ICICI Bank Limited Report

, which dove 4% to $37.74;


, which dropped 4% to $7.34;

Mahanagar Telephone Nigam


, which moved down 3.2% to $4.71; and

Tata Motors

(TTM) - Get Tata Motors Ltd Limited Report

, which lost 2.3% to $14.83.

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

Stocks in China rose Tuesday with shares in Hong Kong leading the advance after the government reported robust export growth for April driven by strong trade with mainland China and other Asian nations that offset weak demand from the U.S. April export sales jumped 14.5% from the previous year to $31 billion, vs. 7.6% in March.

"We see evidence of decoupling here, where growth in other nations remains strong, while U.S. demand slows. But whether this will be sustained in the coming months is a big question. In the months ahead, I see external weakness starting to trickle into the export numbers," said Kelvin Lau, economist with Standard Chartered.

The Shanghai Composite Index closed up 10.86 points, or 0.3%, at 3,375.41, and Hong Kong's Hang Seng Index rose 154.73 points, or 0.64%, to 24,282.04. Here's a look at how some China-based American depositary shares traded in the U.S. Tuesday.

Goldman Sachs downgraded shares of

China Mobile

(CHL) - Get China Mobile Ltd. Report

from neutral to sell, cut its price target and placed the stock on its conviction sell list. Goldman analyst Helen Zhu said in a note to clients, "China Mobile looks to be headed into a uniquely unfavorable regulatory regime." Shares of China Mobile slid 5.4% to $74.05.

Shares of

Giant Interactive Group


jumped 5% after the Chinese online gaming company announced it has resumed full and normal operation of all game servers, following observance of a three-day mourning period for the victims of the recent major earthquake that rocked China. The company also reaffirmed its second-quarter revenue guidance of RMB495 million to RMB505 million. Shares of Giant added 66 cents to $13.46.

Elsewhere in the Chinese online gaming sector,

The9 Limited

(NCTY) - Get The9 Limited Report

surged 6.6% to $24.96;

Perfect World


moved up 6.1% to $25.32;

Shanda Interactive

(SNDA) - Get Sonida Senior Living Inc. Report

added 4.2% to $35.30; and

(SOHU) - Get Limited Report

tacked on 1.3% to $77.72.

Merrill Lynch downgraded shares of


(ATAI) - Get ATAI Life Sciences N.V. Report

, a provider of computer-based testing services in China, to sell from buy following a 57% run-up in the stock during the past two weeks. Merrill thinks investors should lock in profits with the stock trading at 26 times its 2009 earnings. Shares of ATA fell sharply by 10% to $15.35.

Suntech Power


, a Chinese solar energy company, announced it has purchased a minority stake in Chinese manufacturer of solar wafers

Shunda Holdings

from private equity firm Actis and Waichun Investment Fund for $98.9 million. Suntech also said it inked a 13-year silicon wafer supply contract with a subsidiary of Shunda. Under the terms of the deal, Suntech will receive specified annual volumes of silicon wafers with a total volume of around 7 gigawatts from 2008 to 2020. Shares of Suntech dropped 1.8% to $46.02.

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.

For more on Asia, check out

Daniel Harrison's coverage



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