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Update from 6:10 p.m. EDT

Market players in India ignored three-year-high inflation data Friday and took up stocks across all sectors. Dealers in the region said the market has already priced in the high inflation risk, so short-sellers were forced to cover positions as buyers swept in with force.

The Bombay Stock Exchange's benchmark 30-stock Sensex Index surged 377 points, or 2.3%, to 17,098.

Wholesale prices jumped 7.33% in the 12 months to April 12, above last week's 7.14% but below analysts' estimates of a 7.38% rise. Analysts blamed the high figures on a spike in mineral prices and rising food and oil prices. The inflation data were the last reading before the Reserve Bank of India (RBI) meets on Tuesday for a policy review. Analysts are split as to if the RBI will hike rates with a thin majority predicting no change to interest rates, according to



"Though the measures to contain inflation may result in some moderation in the economic growth, it is the endeavor of the government to sustain the current momentum of high growth with price stability," said India's Finance Minister Palaniappan Chidambaram to parliament members Friday.

Indian auto giant

Tata Motors

(TTM) - Get Tata Motors Ltd Limited Report

received clearance from the European Union competition authorities for its acquisition of luxury auto brands Jaguar and Land Rover from

Ford Motor

(F) - Get Ford Motor Company Report

for $2.3 billion. The U.S. Federal Trade Commission also approved the deal on Wednesday. American depositary shares of Tata Motors, which trade on the


, finished essentially flat at $16.05.

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Market speculation was swirling around Indian telecom company

Tata Teleservices

that a major foreign player is looking to take a stake. Some of the companies that could be interested include

South Korea Telecom

(SKM) - Get SK Telecom Co. Ltd. Report





KDDI of Japan


China Unicom

(CHU) - Get China Unicom (Hong Kong) Ltd. Report

, according to the


Indian global communications company

Tata Communications

( TCL) is the second largest shareholder in Tata Teleservices. Shares of Tata Communications closed up 0.8% at $24.80.

India's largest Internet company,

Sify Technologies

(SIFY) - Get Sify Technologies Limited Report

, is planning to list its shares on the Indian stock market to capture growth in smaller cities, said Chairman and CEO Raju Vegesna. Vegesna told the

Economic Times

that Sify will move into 40-50 towns each quarter and provide network services to businesses and then set up cyber cafes for broadband connections for individuals. Shares of Sify finished essentially flat at $4.79.

Leading the gainers list among Indian ADRs Friday were India


, which added 9% to $9.29;

Icici Bank

(IBN) - Get ICICI Bank Limited Report

, which rose 5.4% to $47.20; and


(HDB) - Get HDFC Bank Limited Report

, which traded up 4.6% to $114.88.

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 pulled back Friday as investors in the Far East locked in profits after the Hang Seng Index gained more than 12% in the last month and the Shanghai Index soared 15% over the past five days. Local dealers said volatility could pick up in the near term as speculation mounts that the Chinese government will implement more measures aimed at boosting share prices.

The Shanghai Composite Index fell 25 points, or 0.7%, to 3,557, and Hong Kong's Hang Seng Index closed down 164 points, or 0.6%, at 25,516.

(BIDU) - Get Baidu Inc. 百度 Report

, China's search engine king, announced its first-quarter net profits surged as online marketing revenue more than doubled and the number of customers increased. The company said first-quarter net profits jumped 71% to $20.9 million, or 60 cents a share, matching Wall Street estimates; and revenue soared 108% to $81.9 million, vs. estimates of $75 million. The company said first-quarter online marketing revenue was $81.7 million, a 108.5% increase from a year earlier. Online marketing customers for the first-quarter came in at 161,000, a 43.8% rise from a year ago. Baidu forecasted higher second-quarter revenue in the range of $111 million to $114 million, vs. estimates of $101 million.

Citi Investment Research analyst Jason Brueschke upgraded Baidu to buy from hold and raised his price target to $415 from $350, citing the bullish guidance and Baidu's ability to keep costs down. American depositary shares of Baidu ripped 6.3% higher to $363.69 on above-average trading volume.

Citi Investment Research also upgraded Chinese Internet portal operator

(SOHU) - Get Limited Report

from hold to buy and raised its price target from $56 to $80. Analyst Jason Brueschke said will likely beat first-quarter profit estimates due to strong growth from its Olympics sponsorship and booming new online game sales. "The Olympics will likely help grow into 2009," said Brueschke. Susquehanna joined the party and raised its price target for to $68 from $61 and kept a positive rating on the stock. Shares of Sohu rose 6.6% to $61.84 on twice the stock's average daily trading volume.

VisionChina Media


, one of China's largest out-of-home TV advertising operators, announced blowout first-quarter revenue results and topped revenue estimates for the second quarter. VisionChina said first-quarter net revenue hit $13.6 million, an increase of 304.5% from a year ago, and first-quarter net income came in at $5.4 million, vs. a loss of $0.36 million from a year earlier.

Advertising services revenue in the first quarter soared 326% to $13.2 million from a year ago, and the company signed up more than 380 advertisers for its networks. The company forecasted total revenues for the second-quarter to come in between the range of $19.2 million to $20.2 million, vs. Wall Street estimates of $18.95 million. Shares of VisionChina soared 6.4% higher to $15.63 on four times average daily volume.

Some of the big winners among Chinese stocks that trade on the U.S. exchanges Friday were

Actions Semiconductor


, which jumped 11% to $3.90;

Origin Agritech

(SEED) - Get Origin Agritech Limited Report

, which added 10% to $6.48;

China GrenTech

( GRRF), which traded up 7.7% to $4.89; and

SINA Corporation

(SINA) - Get SINA Corp. Report

, which rose 7.5% to $47.05.

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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