Foxconn hooks up with Nokia and surges in Hong Kong, China real estate up
In Hong Kong, Foxconn International (FXCNY) surged 16.9% as investors poured money into the mobile phone and electronics maker. According to reports, Foxconn will begin selling phones to phone-making giant Nokia (NOK). The company is also planning to set up as many as 10,000 chain stores in China, which the company hopes will make Foxconn into a retail distribution goliath. According to China Daily, Foxconn has earmarked 10 billion Taiwanese dollars for setting up shop, looking towards capitalizing on local sales rather than depending on exports.
Foxconn already owns the Chinese superstore Cybermart, where Blogger Dan Butterfield reports on iphoneasia.com that he saw "the blatant display of Shanzhai (counterfeit) iPhones for sale." And this after scoring the right to distribute real Apple products in China.
Foxconn is already China's biggest electronics maker and now Foxconn parent company, Hon Hai Precision Industry has signed a deal to purchase a Dell factory in Poland, according to Taiwan News, where they will take control of the manufacturing of Dell products like notebooks and servers. This is all part of a plan for the Asian electronics giant to branch out into Europe, the Middle East and Africa
Also in Hong Kong, Geely Automobile (GELYF) soared 6.1%. Meanwhile mining shares plunged as metals, including gold, lost value in London. Zijin Mining (ZIJMF) plunged 5.1% and Aluminum Corp of China (ACH) fell 2.1%
In China, shares in real estate developers gained value. China Vanke (CVKEF) climbed 2.7% and Poly Real Estate Group added 2.2%. China Citic Bank (CHBJF) added another 3.3% gain to Friday's 10% jump after Spain's Banco Bilbao Vizcaya Argentaria raised its stake in the Chinese lender.
In Tokyo today, Japan Airlines (JALSY) surged 7% after news surfaced that the troubled airline might receive government funds to the tune of 700 bilion yen ($7.8 billion). According to Bloomberg, the cash would be included in the second extra budget, although details have not yet been officially announced. The airline is currently discussing selling large stakes to American Airlines and Delta to help balance its books.
Japanese electronics company Fujitsu (FJTSY) rose 4.1% and Alps Electronics (APELY), which makes automotive electronics, added 4.4%, But meanwhile, major electronics company Hitachi (HIT) fell 3.3% as it plans to sell shares to offset debt and make improvements that will hopefully improve the company's prospects after four straight years of losses.