beyondbrics

Optimism spread through Asian markets on Thursday, with the IMF becoming the first major institution to forecast South Korean growth above 6 per cent this year.

There was more good news from China following yesterday’s robust manufacturing survey – car sales in the world’s biggest auto market surged in August.

China: the Shanghai Composite rose 1.3 per cent to 2,655.78, after two days of losses.

Chinese car sales rose 59.3 percent in August year-on-year, thanks to government subsidies of around $440 for each fuel-efficient vehicle. Shares in SAIC Motor, which sold over 95,000 units in August, rose 8.9 per cent to a seven-month high.

India: the BSE Sensex was up 0.1 per cent in late trading to around 18,230, after the central bank rejigged its GDP calculations.

HDFC Standard Life’s Prasun Gajri said that he “remains cautious” about Indian stocks, and “won’t be very aggressive in terms of taking any bets”, due to the fragile global recovery.

South Korea: the IMF raised its growth estimate for 2010 from 5.75 per cent to 6.1 per cent, while the finance ministry said it will seek to balance the budget and reduce debt to below 35 per cent of GDP by 2014.

Shinhan Bank fell almost 5 per cent to a three-month low, after its president was accused of embezzlement over $80m worth of loans he may have arranged to relatives. Other banks also fell on the increased possibility of a rate rise.

Hong Kong‘s Hang Seng index was up 1.2 per cent to 20,868.92. Ping An Insurance was up 2.7 per cent on news that its banking unit will merge with Shenzhen Development Bank; SDB’s Hong Kong shares rose 3.8 per cent.

The Philippines‘ index was the region’s best performer – adding 2 per cent to 3,666.54. Mining and bank stocks led gains.

Conglomerate San Miguel Corp said it may invest $8bn in liquefied natural gas, as it seeks to increase its share of the power sector.

Taiwan: the Taiex rose 0.7 per cent to 7,720.82. China Steel underperformed, adding only 0.3 per cent, after a slight rise in August pre-tax profits.

Indonesia: the Jakarta index fell 0.4 per cent to 3,122.15.

Indonesia will need up to $90bn of private-sector investment in infrastructure over the next five years, government advisor Edward Gustely said. The country had announced a $140bn plan to improve highways, railways and power supply, and Gustely stated that the private sector could fund two-thirds of that, saying that he has “been in discussions on infrastructure bonds and green investment bonds”.

The recent wave of Indian investment in Indonesia may extend to a coal mine owned by Kangaroo Resources. Kangaroo said India’s Essar Group, which bought the Aries coal mines in March, may bid for the GPK mine in East Kalimantan, which holds 248m metric tons of coal.

Malaysia‘s bourse rose 0.6 per cent to 1,441.07. As expected, the central bank kept its benchmark overnight policy rate unchanged – at 2.75 per cent – after three consecutive increases.

Vietnam‘s VN index rose 0.8 per cent to 458.75, after rumours yesterday that local banks have strong ability to invest. In Thailand, the SET index was flat, just below 920 in late trading.

Currencies: the Thai baht and the Malaysian ringgit were both flat against the dollar, maintaining their highest levels in more than a decade.

The Korean won and the Indian rupee gained less than 0.1 per cent against the dollar, while the Indonesian rupiah lost 0.3 per cent.