Sumitomo Mitsui Trust Bank Tokyo Central

Asian Markets Overview of March 17, 2010: Chuo Mitsui (TYO:8309) Setting Up Real Estate Fund

(ABN Newswire) - Asian markets are set to deliver a positive start on Wednesday. US stocks rose to a fresh 17-month high overnight as the US Federal Reserve acknowledged the U.S. economy was gaining momentum and reiterated that the central bank will keep interest rates low for an extended period. Yesterday Asian shares closed mixed ahead of Federal Reserve and Bank of Japan's policy meetings. Japan's Nikkei 225 fell 0.3 per cent after three-day gains; however, China's Shanghai Composite rebounded from falls in previous two sessions. Hong Kong market shed 0.3 per cent as coal mining shares were hurt by China Shenhua's disappointing earnings.

Company News

Chuo Mitsui Trust and Banking Co, a subsidiary of Chuo Mitsui Trust Holdings Inc. (TYO:8309), has formed a wholly owned real estate fund management unit to serve institutional investors both in and outside Japan such as pension funds. The move comes amid estimates that real estate prices, particularly properties in central Tokyo, will start to rise. Japanese trust banks are now setting up real estate funds to boost commission revenue. Chuo Mitsui's new firm will invest office buildings and apartment with the target of boosting assets under its management to some 150 billion yen in five years.

Japan's Shinsei Bank (TYO:8303) said it would raise its stake in Aplus Co (OSA:8589) from 66.4 per cent to 93.5 per cent by converting preferred shares into common shares as the lender looks to revamp the group's consumer finance business. Shinsei also said Aplus would maintain its listing on the Osaka Securities Exchange.

Singapore listed data storage products supplier, Swing Media Technology Group Ltd. (SIN:5BQ), Tuesday said it is seeking a listing on the mainboard of the Hong Kong stock exchange. Swing's main manufacturing operations are in Hong Kong and Taiwan, and one of its main markets is China. Swing said it is currently in negotiations with several professional parties to assist in the proposed listing.

China Shenhua Energy Co. (HKG:1088), the mainland's largest coal producer, said it has changed its development strategy to a combination of acquisitions and organic growth, from purely organic growth, as it pursues its goal of doubling output by 2014. Chinese companies spent last year a record $32 billion on resource acquisitions in Asia, Africa and Australia to sustain the world's fastest-growing major economy. The company is now looking at acquiring mining assets owned by its parent, Shenhua Group Corp. as well as from overseas.