Daily Morning Watch - 3 October 2012

SINGAPORE

Singapore 's Manufacturing PMI declined to 48.7 in September from 49.1 in August according to the Singapore Institute of Purchasing & Materials Management. Electronics PMI slowed to 50.0 from 50.7 in August.

Tiger Airways (TGR) is expanding its operations in Indonesia through the leasing of five more Airbus A320 jets its 33%-owned local associate PT Mandala Airlines, according to the Co's CEO interviewed by Dow Jones.

US indices were mixed on Tuesday. On the US economic data front, ISM New York index rose to 52.9 in September from 51.4 the previous month. Stocks in the commercial professional services and health care equipment & services sectors traded higher while shares in the consumer services and automobiles sectors were under pressure. Looking at some US company news, Core Laboratories (CLB -16.31% to $100.95) expects its 3Q EPS in a range of $1.09 to $1.13 compared to $1.17 - $1.25 in its prior expectations and its revenue between $240M and $245M from $250M - $260M before. Separately, Express (EXPR -22.19% to $11.68) cut its guidance for its 3Q ending October 27.

In Europe , in eurozone, the producer price index accelerated by a seasonally adjusted 0.9% in August, above expectations for a 0.6% increase. Germany 's car registrations dropped 11% in September. Regarding stocks, Alstom was under pressure after selling a 350 million-euro stake. Babcock International jumped after saying it remained confident of meeting its full-year targets. This morning, the Nikkei225 index opened broadly flat, and remains below its key moving averages.

CHINA - HK

China market closed during October 1-5 for Mid-Autumn Festival and National Day.

China 's leading index rose to 99.63 in August from 99.24 in July (revised higher from 98.75).

China 's official Manufacturing PMI rose to 49.8 in September (50.1 expected) from 49.2 in August.

The HSBC China Purchasing Managers' Index edged up to 47.9 in September from 47.6 in August. Key findings were: "- New export orders fall at fastest rate in 42 months. - Output and input prices continue to fall. - Purchasing activity declines amid weak demand and lower production requirements." HSBC commented: "Chinese manufacturing growth is likely to be bottoming out. However, the sharper contraction of new export orders and the lingering pressures on job markets mean that Beijing should step up easing to support growth and employment. Fiscal measures should play a more important role in the coming months."

Total deposits with authorized institutions in Hong Kong rose 1.0% MoM in August according to the Hong Kong Monetary Authority. Hong Kong-dollar deposits grew 1.5% MoM, overall foreign-currency deposits rose 0.4% in August with yuan deposits declining 1.9%.

Hong Kong 's M1 Money Supply rose 8.7% YoY in August vs +5.9% in July, and M2 grew 8.6% vs +5.1%, according to the Hong Kong Monetary Authority.

United Co Rusal (486) said Matthias Warnig, currently the managing director of Nord Stream AG, has been appointed as its new chairman to replace Barry Cheung, who has resigned.

Bank of China (3988)'s Taipei branch is said to have been selected by the People's Bank of China to offer yuan clearing services in Taiwan, reported Dow Jones.

Sino Land (83) has acquired, jointly with K Wah International Holdings (173), a residential land parcel in Hong Kong 's Tsang Kwan O area at bid price of HK$2.3B according to the government. Separately the Co won a land parcel on Peng Chau Island for HK$31M.

New China Life Insurance (1336) said Chairman Kang Dian bought 20K H-shares of the Co at an average price of HK$24.275 per share on September 28, raising his H-share holding to 50K shares.

China Merchants Holdings (International) Co (144) said it has agreed to acquire from its parent group a 46.7% property interest in the Ocean Centre located in Shenzhen city's Nanshan district for 465M yuan.

Guangzhou Shipyard International Co (317) issued a profit warning saying it would swing to a 3Q net loss from a net income of 145M yuan a year earlier.

Geely Automobile (175) said Zhejiang Haoqing Automobile Manufacturing Co Ltd, which the Co sold and purchased certain vehicle products, is conducting a voluntary recall of 55K vehicles of "Geely Kingkong" and "Geely Jin Ying" models in China due to fuel box problems.

Parkson Retail Group (3368) announced Chew Fook Seng will retire and will be succeeded by Tan Hun Meng, currently the Co's COO of Southern Region.