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Market Update

Shanghai Outperforms in Quiet Asia

Asian markets ended little changed Wednesday barring the mainland Chinese markets which outperformed its peers even as investors focused on some economic news in the region.

The Shanghai Composite rallied 2.2% a day after the central bank pumped in cash into the financial system to boost liquidity ahead of the Lunar New Year holidays when the demand for cash is higher. Hong Kong's Hang Seng edged up 0.2%. The Nikkei also ended flat, up just 0.2%. Australia's All Ordinaries slipped 0.2% after domestic inflation figures came in slightly higher than expected.

The Sensex declined 0.4%.

Stocks on the Move

In Tokyo, financial plays were on the buyers' list as the Bank of Japan concluded its monetary policy meeting today, keeping its policy interest rate and asset-purchase programme steady as widely expected.

The apex bank also stuck to its views and said the economy continues to recover moderately.

Mitsubishi UFJ gained 1.2% while Mizuho Financial Group added 0.9%. Top brokerage house Daiwa Securities was up 1.9%.

Among exporters, Panasonic Corp. erased 2.5% and Sony Corp. lost 0.9%. But Nintendo jumped 4.6% while Komatsu Ltd. lifted 3.1%.

Chipmaker Renesas Electronics slumped 3.9% after announcing plans to axe around 5400 jobs by March 2016.

Mainland Chinese property stocks posted solid gains following the PBOC's move to inject liquidity into the system and avert a cash crunch. China Vanke bounced 4.2%. Gemdale Corp. surged 5.3% while China Merchants Property Development pared intra-day gains of over 7% but still ended 4.3% higher.

Hong Kong listed developers were also modestly higher. Poly Property Group rose 2.1% while China Overseas Land & Investment added 2.6%. Sino Land Company was up 1.7%.

Lender and index heavyweight ICBC gained 1.4% while Bank of Communications and China Merchants Bank were up 0.8% and 1.9% each, respectively.

In the resources segment, Angang Steel strengthened 5.4% and Jiangxi Copper climbed 2.9% ahead of a preliminary manufacturing report tomorrow.

Ahui Yingliu Electromechanical Co. bounced around 42% in Shanghai on its first day of trading. Seven of eight companies that debuted yesterday in China rallied around 45% on their first day of trade.

In Sydney, mining issues lost ground, weighing on the resource-heavy benchmark index.

Top miner BHP Billiton was down 0.8% even as the company announced record volumes of coal and iron ore for the December 2013 half year but left shareholders disappointed as iron ore production narrowly missed market expectations.

Last week, Rio Tinto had upgraded its own full-year production guidance. Rio Tinto slipped 1.4% after spot iron ore prices declined overnight.

Fortescue Metals Group also erased 1.1%.

Banking firms were slightly higher even though higher-than-expected inflation figures dashed hopes of a rate cut in the near future. NAB was up 0.8% while Westpac Banking added half a percent.

Banks in Mumbai, however, were among the top losers as SBI lost 0.8% and Axis Bank edged 0.2% lower.

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