The Hang Seng Index rebounded from negative territory on Friday to close up 126.75 points, or 0.5%, to 24,148.43. Early morning losses in the region might have been caused by Goldman Sachs cutting its rating for Hong Kong banks from positive to cautious. The Shanghai Index wasn't as lucky closing, down 1.2% to 4,497.13Investors fear China's central bank will have to increase interest rates, or risk inflation spiraling out of control. Investors are also concerned about the rapid rise in China's money supply, which saw the M2 rise by 18.9% in January, up from 16.7% in December. Consumer prices also rose 6.5% in December, which marked the highest increase in 11 years. Chinese exports also grew by 26.7% for January up from 21.7% for December. Inflation concerns didn't stop U.S. investors from accumulation shares in iShares FTSE/Xinhua China 25 Index ( FXI - Get Report), which traded up 4% Friday on above-average trading volume. Chinese alternative energy ADRs have been experiencing extremes in volatility all week. That volatility was met with some awesome numbers out of Yingli Green Energy ( YGE) on Friday. The Chinese solar-cell maker reported its fourth-quarter profits soared on higher revenue from PV modules. The firm earned $19 million in the fourth quarter compared with $10.9 million for the fourth quarter in 2006. The earnings excitement was short-lived after YGE guided 2008 revenue below Wall Street estimates. Share of YGE closed down 12% on 3 times the average trading volume. The heavy selling pressure in YGE hit the entire sector across the board with JA Solar Holdings ( JASO) falling 8%; Solarfun Power Holdings dropping 5%; and Suntech Power Holdings ( STP) declining 4%. Chinese oil stocks were in high demand on Friday as crude oil prices closed in on $100 a barrel. Cnooc ( CEO) traded up 5%, China Petroleum & Chemical ( SNP) rose 4%, Sinopec Shanghai Petrochemical ( SHI) climbed 4.5% and PetroChina ( PTR) traded up 3%. Rising aluminum and copper prices also helped to take up shares in Aluminum Corp. Of China ( ACH) by 5%. Make sure to check out the Far East Portfolio every night to find out which stocks in India and China are making big moves and announcing major news.
Wipro ( WIT - Get Report) won two large contracts on Friday. The global information technology service firm was awarded a $100 million IT service contract from Saudi Arabian Airlines and a $50 million outsourcing deal with Indian retailer Pantaloon. Shares of Wipro were among the leading decliners among Indian ADRs Friday, falling 2.5%. Noticeable losses were also seen in Patni Computer Systems ( PTI), down 3%, and Tata Communications , down 2.5%. Make sure to check out the Far East Portfolio every night to find out which stocks in India and China are making big moves and announcing major news.