Asian Shares Mostly Decline After US Budget Talks Stall, China Exports Fall

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Asian stocks fell as the U.S. it a snag resolving its budget issues and China reported a surprise drop in September exports.

Senate Majority Leader Harry Reid was negotiating with Minority Leader Mitch McConnell after talks between President Barack Obama and House Speaker John Boehner broke down. President Obama rejected on Friday a proposal by House Republicans for a short-term increase of the ceiling until November 22nd.

Chinese exports fell 0.3% in September from the year-earlier period, according to China's General Administration of Customs, marking the weakest performance in three months. Private-sector economists had been looking for an increase of 5.5%, according to a Wall Street Journal survey.

Also, China's annual consumer inflation rose 3.1% in September, its highest level in seven months. Economists had expected, on average, for the CPI to rise 2.9%, according to a Dow Jones Newswires survey. Producer prices fell an annual 1.3%, close to expectations for a 1.4% decline. Economists had expected a decrease of 1.4%

Separately, a report from the China Securities Journal said investment in equities may be allowed to rise to 30% from 25% of total assets, and to 30% from 20% for real estate and infrastructure.

In Korea, nuclear stocks fell after the Energy Ministry published a study that urged Seoul to reduce its reliance on nuclear power.

Singapore's GDP for the three months to Sept. 30 contracted 1.0% on a seasonally adjusted and annualized basis, compared with an upwardly revised 16.9% increase in Q2, according to advance estimates by the Ministry of Trade and Industry. Economists in a Dow Jones Newswires poll had forecast Q3 GDP to shrink by a median 4.0% from the previous three months.

India's headline inflation unexpectedly accelerated to a seven-month high of 6.46% in September.

In ADR news, Suntech ( STP ) is lower after it provided an update regarding its Global Solar Fund assets in Brindisi, Italy.

It said on Sept 23, an additional 5.3 MW of solar fields were seized and on October 4, another 1.9 MW were seized. As of October 9, in total, 47 sites with a total generating capacity of 37.8 MW have been seized representing approximately 26.9% of GSF's total generating capacity.

On September 30, the Court of Brindisi agreed to appoint judicial administrators for the 27 sites seized on September 19. During the judicial administration period, the Court of Brindisi has authorized that such solar fields will continue to operate and receive feed-in-tariffs in accordance with the guidelines provided by the Court.

In relation to the seizures on September 23, the relevant Italian subsidiaries of GSF have filed to the competent Court the request for the appointment of a judicial administrator.

In relation to the last seizure on October 4, the relevant Italian subsidiaries of GSF are evaluating whether to file the request for the appointment of a judicial administrator.

China Yuchai International ( CYD ) said it has revised the ownership structure of the joint venture entered into by its main operating subsidiary, Guangxi Yuchai Machinery Company Lts. and Guangxi Yuchai's joint venture company, Y&C Engine with Baotou BeiBen Heavy Duty Truck Co., Ltd. and Inner Mongolia First Machinery Group Co., Ltd., which was announced on June 4, 2013. The First Machinery Group will exit from the JV and be replaced with Baotou Beifang Chuangye Co., Ltd. in which the First Machinery Group is the single largest shareholder with a 23.62% interest as reported in Beifang's semi-annual report released on Aug. 27, 2013, covering the period Jan. 1, 2013 to June 30, 2013. Beifang will hold 15% of the new JV entity with the remaining 85% interest held between BeiBen, Guangxi Yuchai Machinery and Y&C Engine.

Japan and Hong Kong closed for public holidays. U.S bond markets will also be closed for Columbus Day.

The Straits Times ended down 0.45% at 3,165.25, Australian down 0.44% at 5,207.90 and Shanghai up 0.43% at 2,237.77.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

Referenced Stocks: CYD , STP

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