10 Minute Market Digest

Asian stocks close mostly higher but doubts remain
ASIAN stocks closed mostly higher on Tuesday with bargain hunters supporting a minor rally late in the day, but gains were less than convincing amid doubts over the US economy.
Most benchmarks suffered early losses with falls on Wall Street and persistent fears over the impact of the US subprime crisis on the broader international economy hurting sentiment.

Japanese share prices closed slightly lower on Tuesday, giving up early gains amid ongoing concerns about the fallout from the US subprime loan crisis, dealers said.
The Tokyo Stock Exchange's benchmark Nikkei-225 index dropped 19.29 points or 0.12 per cent to 16,249.63.
Chinese share prices closed mixed on Tuesday, with index heavyweight PetroChina tumbling nearly 10 percent to drag down the key Shanghai bourse 1.74 per cent, dealers said.
Hong Kong share prices closed higher on Tuesday, up 1.71 per cent, after an erratic session as property stocks drew bargain-hunting interest after losses over the past few days.
Malaysian share prices closed 0.30 per cent higher as investors returned to seek out bargains and pushed the benchmark index into positive territory.

More write-downs for S'pore banks to come: JP Morgan
'IT AINT over yet', warn JP Morgan banking analysts. In a new research note bearing this gloomy title, Mr Harsh Wardhan Modi and Mr Sunil Garg anticipate that Singapore's three local banks will have to make further provisions for the plummeting value of their debt instruments in coming months.
These instruments, collateralised debt obligations (CDOs), are packaged from sub-prime, or risky, mortgages in the United States - which sparked the global credit crunch.
Mr Wardham and Mr Garg said that the prices of asset-backed CDOs have slumped about 50 per cent since the end of the last quarter.
And the continued appreciation of the Singapore dollar may add to losses reported by local banks for the market value of US-dollar denominated CDOs.


Chinese oil companies promise more fuel amid shortages
CHINA'S two main oil companies have promised to step up diesel production, the government said Tuesday, following two weeks of shortages blamed on price controls that have disrupted trucking and caused long lines at filling stations.
The government raised diesel and gasoline prices by about 10 per cent last week to curb demand at a time when refiners say they are losing money due to controls that block them from passing on record-high crude costs to consumers. Some refiners have responded by suspending production, leading to rationing, especially in China's fast-growing south.

M'sian firm buys into S$776m Saudi port project
MALAYSIAN conglomerate MMC Corporation has signed a deal to take part in a joint venture project to develop a US$535 million (S$776 million) container terminal at Jeddah port in Saudi Arabia.
MMC said in a statement late Monday it will pay a nominal sum of US$2 to acquire City Island Holdings, which has a 20 per cent stake in the project.
The Saudi partners are Saudi Industrial Services Company, Xenel Industries Limited and Saudi Trade and Export Development Company, who collectively hold the other 80 per cent interest.