ws ja 20141014

VOL. XXXIX NO. 32

TUESDAY, OCTOBER 14, 2014

OPINION:Dark ForcesIntimidateHong KongPage 11

A Maids Fight for JusticeIN DEPTH Pages 14-17IN DEPTH Pages 14-17

As of 12 p.m. ET DJIA 16522.92 g 0.13% FTSE 100 6366.24 0.41% Nikkei 225 15300.55 Closed Shanghai Comp. 2366.01 g 0.36% Hang Seng 23143.38 0.24% S&P Sensex 26384.07 0.33% S&P/ASX 200 5155.50 g 0.63%

WSJ.com

(India facsimile Vol. 6 No. 91)ASIA EDITION

Australia:A$6.00(InclGST),Brunei:B$8.00,China:RMB28.00,Hong

Kong:HK$23.00(InclMacau),India:Rs100.00,Indonesia:Rp25,000(InclPPN),Japan:Yen620(InclJCT),Korea:W

on4,000,

Malaysia:RM

7.50,Pakistan:Rs140.00,Philippines:Peso100.00,Singapore:S$5.00(InclGST),SriLanka:Slrs500(InclVAT),Taiwan:NT$110.00,Thailand:Baht80.00,Vietnam

:US$4.50

KDNPP

9315/10/2012(031275)

MCI(P)

NO.122/06/2014SK.M

ENPENR.I.NO:01/SK/M

ENPEN/SCJJ/1998TGL.4

SEPT1998

A Syrian Kurd celebrates on the outskirts of Suruc on the Turkey-Syria border as smoke rises following an airstrike by the U.S.-ledcoalition on Kobani. Fighting continued Monday between Kurdish militia and Islamic State militants battling for control of Kobani.

Fighting Edges Closer to Heart of Syrian Border City

Associated Press

Auto SalesIn China TapThe Brakes

Chinese car sales rose attheir slowest pace in 19months in September amid aweakened economy and risinginventories.

For foreign automobilemakers, which increasinglyhave counted on the worldslargest car market to offsetweakness elsewhere, theslowdown in economic growthadds to pressures that includeincreased regulatory scrutiny.

Chinas passenger-carsales last month rose 6.4%from a year earlier to about1.7 million vehicles, accordingto data released on Mondayby the China Association ofAutomobile Manufacturers,a government-backed industrygroup. Growth in total sales ofautomobiles including passen-ger and commercial vehiclesslowed to 2.5% from 20% ayear earlier.

Septembers passenger-carsales performance was theweakest since sales fell inFebruary 2013, a month whenChinas weeklong Spring Fes-tival holiday closed car lots.Industry analysts said the lat-

est results were below expec-tations for a traditionallystrong month. Car makers anddealers usually boost market-ing efforts in September toattract consumers ahead ofthe weeklong National Dayholiday that started Oct. 1.

Foreign auto makers, as awhole, have overcome the in-dustrys slower growth bytaking market share from Chi-nese brands. On Monday,CAAM said foreign auto mak-ers again increased theirshare of the Chinese passen-ger vehicle market, to 62.4%in the first three quarters ofthe year from 60% in theyear-ago period.

But now smaller salesgains are being notched byforeign auto makers as well.

Volkswagen AGs Chinasales in September rose 6.7%from a year earlier, comparedwith an 11% increase for Au-gust. One of Toyota MotorCorp.s Chinese joint ventures,FAW Toyota Motor Co.,slashed its sales target by 6%this year, citing a sluggish

Please turn to page 4

Clashes Erupt Over Road BlocksHONG KONGStudent pro-

testers faced their biggestchallenge in their occupation

of key areas of Hong Kong asfirst police and then maskedmen and taxi drivers tore

down their barricades andtents to open a key road.

As a large truck arrived toclear road blocks, protestersrushed to the scene, surround-ing the truck while police triedto separate the two groups.

The confrontations at thestart of the third week of pro-tests took place on Queen-sway, a major road in the

citys central business districtthat truck and taxi drivershad vowed to force open.

The event was the mostserious confrontation sinceOct. 3 when thugs descendedon protesters at another siteleading to a night of fighting,with police largely standingby. The protests grew dramat-ically after police fired tear

gas at students on Sept. 28.Police dismantled the bar-

ricades early Monday, aftertop Hong Kong governmentofficials went to mainlandChina for an economic devel-opment conference.


Australian UniversityStokes Climate Fight

CANBERRA, AustraliaAplan by a top university hereto sell shares in seven re-sources companies, citing thecontribution of fossil fuels toglobal warming, is rekindlingthe issue of climate change ina country where it has alreadyproved divisive this year.

The Australian NationalUniversity, or ANU, an-nounced on Oct. 3 that itplans to sell its stakes in com-panies ranging from oil-and-gas producer Santos Ltd. tomining company Iluka Re-sources Ltd. after a review bythe Canberra-based schoolthat rated stocks on the basisof their environmental and so-cial responsibility.

Its approach is in line with

a global movement sparked inpart by 350.org, an advocacygroup founded by author andenvironmentalist Bill McKib-ben that is pushing for fossil-fuel pullbacks around theworld.

While the group isnt fo-cused solely on universities,ANUs approach mirrorsmoves in the U.S. by universi-ties such as Stanford, whichhalted investments in coal-mining companies this year.

The University of Glasgowon Oct. 8 became the first uni-versity in Europe to withdrawfrom fossil-fuel investments,and since the beginning of2014 the global divestmentmovement has doubled insize, according to 350.orgswebsite, citing universities,


BY ROB TAYLOR

By Enda Curran,Fiona Law

and JackyWong

Mong Kok site becomes awild card......................................... 5

In China, the Bus Stops Sometimes Take a Walki i i

Riders Rearrange Signs to Suit Them, Wreaking Havoc

XIAOZUO, ChinaNotmuch happens in this dustyChinese village, population3,000.

Then, on July 30, resi-dents discovered that thebus stand for Route 84 onthe edge of theirvillage in centralHenan province hadmysteriously moved200 meters, or 656 feet,west, where it sat reposingin a batch of freshly pouredconcrete.

Further down the sun-beaten stretch of road,there was a gaping hole inthe ground where the oldbus stopa polebearing a metal

placard stamped with routenamesused to be.

With that, Xiaozuo be-came the latest hamlet tofall prey to a particularlyChinese menace: the movingbus stop.

Across the worlds sec-ond-largest economy, citi-

zens are playingfootsie with busstands, wreakinghavoc with trans-

port routes and pittingneighbors against one an-other as they angle for thespecial rewards and prestigethat can come with having abus stop close at hand.

Its really difficult tokeep villagers frommoving the busstop, said one

Route 84 bus driver on a re-cent day as he canvassed hisroute, fields of green-stalkedcorn flashing by. We cantwatch them day and night. Ifthey want to move the busstop, we have no way to stopthem.

Officials at Chinese buscompaniesthere are hun-dreds of such companies inChinasay some signpostpilferers want buses toempty out closer to theirbusinesses so they can getmore foot traffic. Other peo-ple object to walking too farfor a liftand take mattersinto their own hands.

While there are no fig-ures on how often the phe-nomenon occurs nationwide,


BY TE-PING CHEN

Officials say IslamicState is seeking afoothold in Afghanistan,potentially extendingthe extremist groupsreach when foreigntroops are leaving.Asia News.................6

Competitive pressuresloom for chip makerTSMC.Business..................19

Inside

Gedang bus stop

32 | Tuesday, October 14, 2014 THEWALL STREET JOU

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EDITION.

Macau Gamblers Can Find Best Odds With SJMMacaus casinos are down on

their luck. Investors should checktheir cards carefully before doublingdown.

A corruption crackdown and aweakening economy on the main-land have high rollers staying awayfrom Chinas semiautonomous gam-bling hub.

They are being replaced bydroves of mass-market customerswho arent gambling nearly enoughto make up the shortfall. Shares ofthe six major casino operators listedin Hong Kong are down an average35% so far this year.

Investor hopes were briefly re-kindled when Macau reported thattourist arrivals were up a strong16% over a weeklong Chinese holi-

day in early October. But more tour-ists came to shop and eat than gam-ble. Credit Suisse estimates thataverage daily gambling revenueswere down by a third over the holi-day. A new partial smoking ban addsto the uncertainty.

The six Hong Kong-listed casinooperators currently are trading atan average of 14.1 times forwardearnings. That looks cheap com-pared with their average ratio of17.8 over the past five years. But itisnt likely the bottom. During thelast gambling downturn in 2012,valuations fell to around 11 timesforward earnings.

There is little reason to think themacro environment will improve.Most expect Chinas economy to

keep slowing next year. And predic-tions that Beijings corruptioncrackdown will let up have yet to beproven right.

High dividend yieldscurrently4.2% for Sands China and 6.6% forWynn Macauseem attractive. Butanalysts at Daiwa figure neither willhave sufficient operating cash flowto maintain their current payoutsover the next three years.

Macau bulls are betting thatadded capacity will bring in moregamblersbut it could just as easilylead to empty baccarat tables.

All six listed companies are plan-ning major expansions or whole newresorts, three of them opening nextyear. Daiwa sees no letup in the cor-ruption crackdown, and thus a 7%

decline in gambling revenues in2015.

In that environment, operatorswith expansions opening later seemto be safer. Stanley Hos SJM Hold-ings, operator of the Lisboa brand,isnt set to open a new casino until2017.

SJM also is one of the twoMacau gambling stocks that makeDaiwas list of safe dividends, withan enticing 4.8% yield. And it cur-rently trades at the lowest multipleof the six, 10.4 times forward earn-ings, close to its bottom over thepast five years.

Investors would be wise to laytheir bets in Macau carefully. SJMoffers the best odds.

Aaron Back

Oil-Price Decline: Enemy of the StateA maxim of geopolitics says that

the enemy of my enemy is myfriend. There is an element of thatin how falling oil prices affect theWestern majors.

The bull market in oil over thepast 15 years or so fired up resourcenationalism, whereby governmentsof countries rich in raw materialsblock access to foreign companies,seize assets, or impose tougher con-ditions and taxes. Lately, though,some flags have been partiallyfurled, and the sharp drop in oilprices in recent months should en-courage more of that. Western ma-jor oil companies wont escape thefallout, but they do stand to benefitas resource nationalism retreats.

The most obvious example todate is Mexico, which is opening itsoil sector to foreign operators in abid to halt declining production.Roseanne Franco of Wood Macken-zie calls this a game-changer thatshould prompt other governmentsin the region to swap resource na-tionalism for resource maximiza-tion. Indeed, in Argentina, whichnationalized YPF only in 2012, the

Senate just passed an oil-industry-backed overhaul package to encour-age shale drilling. Similar moveshave been made, or are being con-sidered, in other countries, includ-ing China, Indonesia and Algeria.

The impetus for change is the re-vival of North American oil-and-gasoutput. The extra barrels suppressprices, putting pressure on govern-ment budgets in large oil-exportingcountries. That strain also can beseen in the share prices of nationaloil companies.

In the past month, as Brent hasfallen by about 10%, shares in Rus-sias Rosneft and PetroChina haveboth tumbled by about 13%. In con-trast, Exxon Mobil is down lessthan 5%. And many state-backed oilcompanies, especially those in Rus-sia, Venezuela and Mexico, havehigh debt levels. In a crunch, thatcould end up the governmentsproblem; after all, national oilchampions really are too big to fail.

North Americas shale riches alsochallenge resource nationalism bycompeting for investment. Some38% of incremental spending in up-

stream oil and gas from 2009 to2013 went to the region, accordingto IHS Herold. Western major oilcompanies can capitalize on this.Their desperate search for reservesreached its nadir in Iraqs second li-censing round in 2009, when manyaccepted a flat fee per barrel pro-duced. This contributed to a steadyfall in return on capital, which hasnow prompted the majors to cutboth spending and growth targets.

This is a rational response tolimited access, largely enabled bythe expansion of opportunities inunconventional resources such asshale. The majors have struggled toreplace output in recent years, atleast in terms of proven reserves.But unconventional resources, evenif not necessarily strictly classifiableas proven, have a decent track re-cord of yielding real barrels.

Fraser McKay, a principal analystat Wood Mackenzie, says that forthe biggest four majorsExxon,Chevron, Royal Dutch Shell andBPunconventional discoverieshave been by far the biggest sourceof new resource additions over the

past five years. He also points outthe relatively short time it takes toget oil and gas from such prospectsfits with shareholders current man-tra for cash flow to come out of theground rather than just go into itfor years on end.

All this makes the majors rela-tively safer energy bets in todaysenvironment. Their scale and inte-grated model mean they dont havethe same leverage to oil prices asexploration-and-production firms.

It makes potential acquisitiontargets cheaper. Only a year ago, thelikes of EOG Resources and Ana-darko Petroleum sported multiplesof forward earnings in the highteens that were at a roughly 70%premium to Exxons stock. Today,that has shrunk to between 23% and36%. Resource-rich governmentsspooked by oils fall also must re-member that the majors can alwaysgo looking for barrels on WallStreet, too. Liam Denning

HEARDON THE STREETEmail: [email protected] FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard

Luck Runs OutMacaus monthly gross gamblingrevenue, percentage change fromyear earlier

The Wall Street Journal

Sources: Macau Gaming Inspection andCoordination Bureau, CEIC

100

20

0

20

40

60

80

%

10 11 12 13 142009

Sept.: -11.7%

Source: FactSet The Wall Street Journal

Target RangePremium to Exxon Mobils forwardprice/earnings multiple

0

40

80

120

12 13 142011

EOG Resources

Anadarko Petroleum

Kommersant

/Getty

Images

An oil rig in the Barents Sea, near Russia

160%

A SPECIAL INTERACTIVE PRESENTED BY:

2014 Dow Jones & Company, Inc. All rights reserved. 3WSJ1359 Photography by Billy H.C. Kwok

NoGoodChoicesAMAIDS FIGHT FOR JUSTICE

Hong Kong is home to hundreds of thousands of women from Indonesia and thePhilippines who work as helpers in pursuit of meager wealth. They are now anindispensable part of the citys vibrant economy and society. But incidents of abuseoften stay hidden from public view. Follow one womans tale as she seeks to put herlife back together after a horrific crime.

WSJ.COM/MAIDS

2 | Tuesday, October 14, 2014 HK JP ID MU KO ML PH SI TL TW IN THEWALL STREET JOURNAL.

ONLINE TODAY

India Real Timewsj.com/indiarealtime

The diplomatcharged in the U.S.with visa fraud andunderpaying a maiddefends herself in aTV interview.

China Real Timewsj.com/chinarealtime

Chinas book bansare becoming amarketing coup forauthors thanks tosocial media.

Korea Real Time

Seouls mayor becomesthe first mainstreamSouth Korean politician toback same-sex marriage.wsj.com/korearealtime

Indonesiawsj.com/searealtime

Facebooks MarkZuckerberg says hewas excited to visitIndonesia becauseof the heavy use ofsocial media duringrecent elections.

PAGE TWO

i i iBusiness & Finance

n The ride for fund managersthat rushed to buy shares ofChinas state-owned firms thisyear is turning into a bumpy oneas a series of disappointments forinvestors have sent shares tum-bling since early September. 19

n The travails of a midsize Chi-nese property developer are pro-viding the latest lesson in the per-ils of investing in the countrysstruggling real-estate firms. 21

n The makers of KakaoTalk saidthe company has stopped honor-ing warrants from governmentprosecutors seeking to accessmessages of the users of theSouth Korean mobile-messagingapplication. 20

n Universal intends to open a$3.26 billion theme park in Beijing,the latest multibillion-dollar amuse-ment park planned by foreign anddomestic firms in China. 21

n Publicis is buying a 20% stakein digital-advertising tech firmMatomy Media, in the latest indi-cation of big ad agencies beefingup their tech capabilities as moremarketing dollars shift online. 23

n BHP and Mitsubishi said theyexpect their new coal-mining op-eration in eastern Australia to beable to ride out a prolongedmarket slump. 24

n U.S. funds including Black-Rock, Morgan Stanley InvestmentManagement and Neuberger Ber-man are among the nine inves-tors that have agreed to buyshares in PT Link Net. 24

n Chinas exports and importsrose faster than expected in Sep-tember, providing a modicum ofgood news as Beijing aims to meetits 7.5% annual growth target. 4

n Oil prices skidded further,holding near multiyear lows, onindications that global supplieswould remain ample. 27

n The U.S. credit-card industryhas found its sweet spot: a combi-nation of moderate economicgrowth, low rates and consumerswho have struck a balance be-tween spending more and payingtheir bills on time. 26

n The Dow industrials werehigher after the Federal ReserveBank of Chicago president said thatthe biggest risk to the economyis premature rate increases. 26

n Fiat Chrysler sales slipped intheir trading debut on the NewYork Stock Exchange. 21

i i iWorld-Wide

n Australias leader said he plansto use tough language with Presi-dent Putin next month, in demand-ing full Russian cooperation withthe Dutch probe into the downingof Malaysia Airlines Flight 17.

n Prime Minister John Key set areview of New Zealands legislationrelated to foreign terrorist fighters.

n Yemens president named a dip-lomat as prime minister after Shiiterebels forced out his predecessor.

Sri Lankan ethnic Tamils rush toward the train Queen of Jaffna in Sri Lanka on Monday. The train linking the ethnic Tamilsnorthern heartland to the rest of Sri Lanka arrived in Jaffna, 24 years after its suspension due to the countrys civil war.

AssociatedPress

Inside

World News: Frencheconomist wins NobelPrize in Economics. 7

Capital Journal:Democrats lose edgeon peace, prosperity. 8

Life & Style: Wherefashion styles arereally set. 9

Whats News

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THEWALL STREET JOURNAL. Tuesday, October 14, 2014 | 31

Asian stocks in the news

Infosys Ltd.India 3,943.45 rupee

s 1.4% or 54.50 rupee

Barclays Capital raised its target pricebased on an increased earnings outlookfollowing strong quarterly results.

O2013N D

2014J F M A M J J A S

1200

2400

3600

4800

6000In rupee

Price-to-earnings ratio 20Earnings per share, past four quarters N.A.Dividend yield 1.5

PERCENTAGE CHANGEDaily 1 wk. 52wks

Technology -1.1% -4.7% 6.0%Infosys Ltd. 1.4% 2.5% 20.5%

AIA Group Ltd.Hong Kong HK$41.90

s 1.7% or HK$0.70

The firm rose as investors awaited itsquarterly results due out later thisweek.

O2013N D


15.00

30.00

45.00

60.00

75.00In Hong Kong dollars



Financials 0.0% -0.9% -5.0%AIA Group Ltd. 1.7% 2.3% 10.3%

China Telecom Corp. Ltd.Hong Kong HK$4.67

s 2.2% or HK$0.10

The shares have gained 19% so far thisyear.

O2013N D


1.50

3.00

4.50

6.00

7.50In Hong Kong dollars



Telecommunications 0.4% -1.0% 1.6%China Telecom Corp. Ltd. 2.2% -0.6% 18.2%

KT&G Corp.Korea 93,600won

s 4.0% or 3,600won

The tobacco company's shares are up22% fromayear ago.

O2013N D


30000

60000

90000

120000

150000In won



Consumer Goods 0.1% -2.2% -3.0%KT&G Corp. 4.0% 3.4% 21.4%

Fortescue Metals GroupAustralia A$3.46

s 6.1% or A$0.20

Someminerswere helped by a rise iniron-ore futures onChina'sDalianCommodity Exchange.

O2013N D


1.50

3.00

4.50

6.00

7.50In Australian dollars



BasicMaterials 0.3% -2.3% -10.2%FortescueMetals Group 6.1% 4.9% -30.8%

DLF Ltd.India 146.70 rupee

t 3.7% or 5.65 rupee

India'smarket regulator barredDLF andsomeof its executives fromaccessingcapitalmarkets.

O2013N D


60

120

180

240

300In rupee



Financials 0.0% -0.9% -5.0%DLF Ltd. -3.7% -2.5% -4.9%

MediaTek Inc.Taiwan TW$403.00

t 4.0% or TW$17.00

The shares slid amid concerns aboutearnings in the tech sector.

O2013N D


150

300

450

600

750In Taiwan dollars



Technology -1.1% -4.7% 6.0%MediaTek Inc. -4.0% -13.5% 4.8%

United TractorsIndonesia 18,200 rupiah

t 5.0% or 950 rupiah

The company's shares have lost nearly9% so far thismonth.

O2013N D


8000

16000

24000

32000

40000In rupiah



Industrials -0.2% -3.6% 1.2%United Tractors -5.0% -9.0% -2.7%

Uni-President EnterprisesTaiwan TW$48.35

t 5.4% or TW$2.75

Calls for a boycott of its products grewafter the companywas found to haveused oil unfit for human consumption.

O2013N D


15.00

30.00

45.00

60.00

75.00In Taiwan dollars



Consumer Goods 0.1% -2.2% -3.0%Uni-President Enterprises -5.4% -7.0% -7.2%

Adaro EnergyIndonesia 1,010 rupiah

t 7.3% or 80 rupiah

The company's shares dropped to a nearsix-month low.

O2013N D


400

800

1200

1600

2000In rupiah

Price-to-earnings ratio 10Earnings per share, past four quarters N.A.Dividend yield N.A.


BasicMaterials 0.3% -2.3% -10.2%Adaro Energy -7.3% -11.4% 2.0%

Moving themarketsAt right, Japans benchmark stock indexand the biggestmovers among thelargerAsian stocks indexes and stocksMonday. Beloweach index are itsmostactively traded stocks. The charts showthe percentage change in each indexs orstocks value, rather than the pointchange, for purposes of comparison. Theindex level or stock price is indicated oneach axis. All indexes and stocks areshown in local currency terms.

Asian index movers

Nikkei Stock AverageJapan 15300.55

Market Closed

O2013N D


7000

10500

14000

17500

21000

Volume ChangeStock inmillions friday Net %

MizuhoFin 195.77 189 -4 1.92

Unitika 88.65 49 -2 3.92

MitsuUFJFin 62.87 589 -12 2.03

KobeSteel 50.36 162 -4 2.41

NipponStl&SmtmoMtl 49.19 260 -5 2.03

ASX 200Australia 5155.50

t 0.63% or 32.80

O2013N D


2400

3600

4800

6000

7200

Volume ChangeStock inmillions Close Net %

Arrium 36.35 0.34 0.01 1.47

FortescueMetalsGrp 32.30 3.46 0.20 6.13

Telstra 26.67 5.25 0.04 0.76

AurizonHoldings 17.35 4.18 0.14 3.24

Alumina 13.07 1.63 0.04 2.40

Shanghai CompositeChina 2366.01

t 0.36% or 8.53

O2013N D


1000

1500

2000

2500

3000


InnerMongoliaBaot 274.04 2.87 0.01 0.35

AnhuiXinkeA 232.88 5.85 0.43 6.85

AnhuiWanweiA 229.24 4.24 0.08 1.85

HainanAirlinesA 197.09 2.07 0.03 1.43

ChengtunMining 156.94 8.46 0.23 2.79

S&P BSE SensexIndia 26384.07

s 0.33% or 86.69

O2013N D


10000

15000

20000

25000

30000


HindalcoIndustries 7.78 151.10 0.95 0.63

JindalSteel&Power 5.70 159.05 3.15 2.02

TataMotors 5.14 489.60 -3.10 0.63

BharatHeavyElec 5.13 218.20 -3.40 1.53

NTPC 5.10 140.25 -1.00 0.71

Japans markets were closed for a na-tional holiday. The index lost groundFriday and gave up 2.6% for the week,declining for a third consecutive week.

The market finished lower, largelyshrugging off stronger-than-expectedtrade figures from China amid concernsabout global economic growth.

Chinas shares extended their losses ondoubts over the sustainability of theimprovement in exports amid worriesabout global growth.

The benchmark was buoyed by the up-beat China trade data and continuedgains in tech bellwether Infosys, whichposted higher net profit on Friday.

MARKETS LINEUP

WSJ.com>>Follow the markets throughout theday, with updated stock quotes, newsand commentary at WSJ.com.

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WORLD NEWS: ASIA

China Sentences 12 to Death for AttacksBEIJINGA Chinese court sen-

tenced 12 people to death and doz-ens more to lesser sentences for at-tacks on government buildings andvehicles that killed 37 people in thewestern border region of Xinjiang.

Aside from the 12 sentenced todie, the court in Kashgar prefectureissued death sentences on Mondayto another 15 people and then sus-pended the punishment for twoyears, said the Xinjiang govern-ments Web portal, Tianshan.

Nine more people were sen-tenced to life imprisonment, while

another 20 were given jail termsspanning four to 20 years, Tianshansaid.

A death sentence suspended fortwo years is normally commuted toa life sentence if the convict dis-plays good behavior in prison. Noneof the people sentenced Mondaycould be reached for comment, andit wasnt clear whether they plannedto appeal.

The July 28 attacks in Shache, asparsely populated county situatedbetween a vast, shifting-sands des-ert and the Karakoram mountainsthat form the border with Pakistan,also left 94 people injured and were

among a series of deadly clashesthis year in Xinjiang. China has bat-tled a sporadically violent separatistmovement by some Uighurs, a Tur-kic-speaking and mainly Muslimethnic group.

Tianshan and state television re-ports didnt give the ethnicity ofthose sentenced Monday, but theirnames identified them as not beingfrom Chinas Han Chinese majority.

Over the past year or so, vio-lence linked to Xinjiang separatistshas ticked up, with attacks on trainstations and other public placesmoving beyond the usual targets ofpolice stations and other govern-

ment buildings.Security forces, meanwhile, have

responded with measures that hu-man-rights and Uighur advocacygroups say are harsh.

In the July attack, assailantswhom state media said were terror-istsattacked civilians, state build-ings and vehicles in two towns inShache, before police gunned down59 people and arrested 215 others.

In response to attacks in thespring, the government declared asecurity clampdown that has re-sulted in detentions of large num-bers of people, the posting of check-points across roadways in Xinjiang

and stepped-up patrols by armedpolice.

In September, a series of blastsin Luntai county killed six peopleand injured 54 others, prompting apolice crackdown that left 40 riot-ers and four law-enforcement offic-ers dead, state media reported.

Chinese government and securitypolicies in Xinjiang have drawn crit-icisms for years from rights and Ui-ghur advocacy groups for makingUighurs feel marginalized and forexacerbating tensions between themand Han Chinese, who have mi-grated into the region in large num-bers in recent decades.

BY CHUN HAN WONG

Japan BracesAs TyphoonHeads North

TOKYOTyphoon Vongfong con-tinued to drench Japan as it acceler-ated northeast on Monday evening,tracking the contour of Japans mainisland chain and bringing heavywinds and rain to western parts ofthe country.

While the storm was losing someof its earlier strength, large parts ofthe nation were still subject toheavy rain and flood warnings, withtransportation networks disrupted.Nearly a million people were issuedevacuation advisories and morethan 60 people were injured.

Parts of Awaji Island, sand-wiched between the island ofShikoku and the area west of Kobein western Japan, were hit witharound eight centimeters of rain inan hour, public broadcaster NHKsaid, noting flooding of roads andhouses on the island, and mud slid-ing toward the lobby of a hotel.

As of 7:40 p.m. local time, Vong-fong was passing by the eastern tipof Shikoku, heading toward Osakaand Nagoya, the Japan Meteorologi-cal Agency said. The storm wasmoving at about 48 kilometers anhour, almost twice the speed it wastraveling at when it reached Japansmain islands on Monday morning.Wind gusts were as high as 144 kph,the agency said.

The increased speed will powerthe typhoon north of Tokyo earlyTuesday, likely lessening the disrup-tion to the capital when commutersreturn to work after an extendedweekend holiday. The Kanto areasurrounding Tokyo is expected toreceive as much as 28 centimetersof rainfall, the agency said.

The storm will then pass throughthe Tohoku northeastern region ofJapan around 6 a.m. local time, theagency said.

Shizuoka prefecture, about 144kilometers west of Tokyo, issuedevacuation advisories for more than730,000 people. According to na-tionwide tallies by NHK, more than930,000 were affected by evacuationorders while the number of injuredwas 68, with one person missing offthe coast of Shizuoka.

People in neighborhoods of Hiro-shima city affected by recent land-slides were also advised to evacuate.Heavy rains at the end of Augusttriggered mudslides in the city inwestern Japan, killing more than 70people.

More than 500 regional flightswere canceled because of the storm,across all airlines servicing westernand southern Japan.

BY BRADFORD FRISCHKORN

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30 | Tuesday, October 14, 2014 THEWALL STREET JOURNAL.

Dow Jones Industrial Average P/E: 16LAST: 16522.92 t 21.18, or 0.13%YEAR TO DATE: t 53.74, or 0.3%OVER 52WEEKS s 1,221.66, or 8.0%

*Price-to-earnings ratio for the Nasdaq 100 Note: Price-to-earnings ratios are for trailing 12 months Sources: WSJ Market Data Group; Birinyi Associates

18000

17500

17000

16500

16000

15500

18 25 1 8 15 22 29Aug.

5 12 19 26Sept.

3 10Oct.

High

Close

Low

50daymoving average

t

Nasdaq Composite Index P/E: 23*LAST: 4267.85 t 8.38, or 0.20%YEAR TO DATE: s 91.26, or 2.2%OVER 52WEEKS s 452.58, or 11.9%

4750

4600

4450

4300

4150

4000

18 25 1 8 15 22 29Aug.

5 12 19 26Sept.

3 10Oct.

S&P 500 Index P/E: 19LAST: 1898.96 t 7.17, or 0.38%YEAR TO DATE: s 50.60, or 2.7%OVER 52WEEKS s 188.82, or 11.0%

2200

2100

2000

1900

1800

1700

18 25 1 8 15 22 29Aug.

5 12 19 26Sept.

3 10Oct.

DJIA component stocksVolume, CHANGE

Stock Symbol inmillions Latest Points Percentage

AT&T T 11.8 $34.30 0.05 0.15%AmExpress AXP 1.9 84.61 0.38 0.45Boeing BA 1.6 122.70 1.20 0.99Caterpillar CAT 3.1 93.47 0.34 0.37Chevron CVX 3.3 113.68 0.21 0.18CiscoSys CSCO 15.8 23.40 0.05 0.24CocaCola KO 8.8 44.59 0.12 0.27Disney DIS 3.9 85.70 0.57 0.66DuPont DD 2.0 66.64 0.10 0.15ExxonMobil XOM 5.9 92.39 0.79 0.86GenElec GE 19.5 24.24 0.03 0.12GoldmanSachs GS 1.5 180.81 0.43 0.24HomeDpt HD 3.8 92.09 0.46 0.50Intel INTC 22.9 32.28 0.37 1.16IBM IBM 1.3 186.24 0.31 0.17JPMorgChas JPM 8.2 58.99 0.47 0.80JohnsJohns JNJ 4.7 100.90 0.33 0.33McDonalds MCD 2.6 92.07 0.23 0.25Merck MRK 6.5 57.71 0.95 1.62Microsoft MSFT 18.0 44.42 0.39 0.90NikeB NKE 2.0 86.97 0.22 0.25Pfizer PFE 14.4 29.25 0.12 0.41ProctGamb PG 5.1 84.15 0.54 0.643M MMM 2.2 135.03 1.20 0.90TravelersCos TRV 1.7 94.50 0.46 0.49UnitedTech UTX 2.4 100.81 0.87 0.87UtdHlthGp UNH 1.2 85.81 0.42 0.49Verizon VZ 8.5 49.37 0.43 0.88VISAClA V 1.4 207.48 2.50 1.22

WalMart WMT 3.1 78.26 0.03 0.04

U.S. stocks: most active...Volume, CHANGE

Stock Symbol in millions Latest Points Percentage

SPDRS&P500 SPY 112.2 $190.92 0.38 0.20%BrcliPathVIXShFut VXX 56.6 35.02 0.83 2.32BankAm BAC 52.6 16.59 0.11 0.67PwrShrsQQQ QQQ 45.3 94.84 0.40 0.42iShMSCIEmgMarkets EEM 42.8 41.37 0.86 2.11GTAdvTechs GTAT 41.8 0.42 0.39 48.73iShRussell2000ETF IWM 35.8 105.97 1.23 1.17iBio IBIO 34.6 2.32 0.85 58.11VS2xVIXShortTerm TVIX 33.2 3.92 0.20 4.76SPDRFnclSelSct XLF 31.6 22.70 0.12 0.51CSX CSX 30.4 32.93 2.99 9.99Apple AAPL 29.8 101.46 0.73 0.72PetrlBraADS PBR 27.9 17.13 1.51 9.67FacebookClA FB 27.2 74.58 1.67 2.29SPDREngySelSct XLE 26.9 82.93 0.62 0.74

Biggest gainers...DoralFinancial DRL 1,200.9 $7.00 1.71 32.33%VitalTherapies VTL 30.5 16.95 3.37 24.82AlnylamPharm ALNY 2,662.4 89.05 16.20 22.24AtlasEnergy ATLS 4,068.1 39.25 6.84 21.10PrtlxBioThera PLX 3,927.7 2.62 0.42 19.09

...Biggest losersAerohiveNetworks HIVE 1,145.5 $4.76 1.87 28.21%LithiaMtrA LAD 382.8 66.48 14.38 17.78Covisint COVS 217.2 3.22 0.68 17.44GoodrichPet GDP 3,501.9 8.96 1.87 17.27HeatBiologics HTBX 98.6 5.07 0.92 15.37

ADRs of Asian companies*52-WEEK Volume, CHANGE

High Low Stock Symbol inOOOs Latest Points Percentage

$23.07 $16.44 TaiwanSemi TSM 7,778.3 $20.06 0.62 3.19%231.41 140.66 BaiduADS BIDU 2,833.1 207.03 3.68 1.8165.20 50.06 InfosysADS INFY 2,176.9 64.33 1.51 2.4073.91 55.59 BHPBillitonADS BHP 1,906.5 57.98 2.25 4.0413.29 1.47 PranaBiotech PRAN 1,841.3 1.93 0.06 3.2155.37 30.95 ICICI BkADS IBN 1,518.2 49.86 0.73 1.4969.74 35.96 CtripIntADS CTRP 1,165.8 53.89 0.13 0.2420.35 15.23 SonyADS SNE 746.4 17.20 0.08 0.479.08 5.59 SiliconwareADS SPIL 717.6 6.58 0.17 2.656.74 5.19 MitsuUFJADS MTU 650.2 5.36 0.02 0.2865.55 41.35 ChinaMobile CHL 622.4 60.92 2.49 4.2611.88 2.33 ChinaFinOnADS JRJC 519.3 4.72 0.19 3.9128.96 11.71 SiliconMotionADS SIMO 485.8 23.87 0.26 1.1091.06 62.88 NeteaseADS NTES 447.8 84.17 0.75 0.9111.79 1.65 VimicroIntlADS VIMC 440.3 9.53 0.18 1.856.89 4.44 AdvSemiEnggADS ASX 391.5 5.92 0.03 0.50

48.88 26.47 TataMtrsADS TTM 319.5 43.70 0.99 2.3243.00 29.24 51jobADS JOBS 307.5 30.65 0.59 1.9617.75 10.46 LGDisplayADS LPL 288.0 14.97 0.25 1.6442.96 31.26 HondaMtrADS HMC 270.1 31.71 0.01 0.0386.99 63.71 POSCOADS PKX 236.8 71.26 1.45 2.0851.67 30.57 HDFCBnk HDB 236.2 47.77 0.72 1.5323.12 12.75 KoreaElecPwr KEP 231.8 22.89 0.42 1.874.99 2.71 AUOptrncs AUO 216.2 3.91 0.04 1.0131.84 20.64 SKTelecomADS SKM 204.3 28.82 0.52 1.848.21 5.53 NomuraHoldingsADS NMR 166.2 5.58 0.01 0.18

33.96 28.67 CanonADS CAJ 164.9 31.05 ... ...12.20 5.85 KongzhongADS KZ 152.2 6.07 0.23 3.6518.20 11.71 ChinaUnicomADS CHU 143.6 14.88 0.35 2.41132.53 103.38 ToyotaMtrADS TM 130.7 114.08 0.11 0.10

*Most activeAmerican depositary receipts tracked byDowJones

Source:WSJMarketDataGroup

Global government bondsLatest,month-ago and year-ago yields and spreads over or underU.S. Treasurys on benchmark two-yearand 10-year government bonds around theworld. Data as of 12 p.m. ET

Country/ SPREADOVERTREASURYS, in basis points YIELDCoupon Maturity, in years Yield Latest Previous MonthAgo Year ago Previous Month ago Year ago

4.300 Austria* 2 -0.029 -45.3 -47.8 -56.8 -12.5 -0.038 0.000 0.233

3.650 10 1.111 -117.1 -120.4 -126.8 -44.3 1.101 1.284 2.251

2.750 Belgium 2 0.003 -42.1 -43.7 -59.5 -7.7 0.003 -0.027 0.281

2.600 10 1.177 -110.5 -113.8 -116.3 -7.7 1.167 1.390 2.617

3.125 Finland* 2 -0.068 -49.2 -45.7 -56.8 -16.3 -0.017 0.000 0.194

3.500 10 1.109 -117.3 -118.4 -129.7 -68.1 1.121 1.255 2.013

0.250 France 2 0.009 -41.5 -43.9 -54.0 4.0 0.001 0.028 0.397

1.750 10 1.264 -101.8 -105.6 -110.9 -31.2 1.249 1.444 2.382

0.250 Germany 2 0.005 -41.9 -43.5 -63.8 -17.9 0.005 -0.070 0.179

1.500 10 0.848 -143.4 -146.4 -155.3 -84.0 0.841 0.999 1.854

n.a. Greece 2 n.a. ... ... ... ... ... ... ...

n.a. 10 n.a. ... ... ... ... ... ... ...

4.750 Italy 2 0.492 6.8 4.5 -10.6 130.2 0.485 0.462 1.660

3.750 10 2.331 4.9 1.3 -8.2 159.2 2.318 2.471 4.286

3.250 Netherlands 2 0.005 -41.9 -43.5 -59.5 -13.4 0.005 -0.027 0.224

2.000 10 1.040 -124.2 -126.7 -130.9 -45.4 1.038 1.244 2.240

5.450 Portugal* 2 0.530 10.6 12.9 1.6 398.9 0.569 0.584 4.346

3.850 10 3.035 75.3 63.7 66.3 349.3 2.942 3.216 6.187

4.250 Spain 2 0.364 -6.0 -6.2 -14.5 105.2 0.378 0.423 1.409

2.750 10 2.077 -20.5 -24.8 -18.1 160.6 2.057 2.372 4.300

2.000 U.K. 2 0.525 10.1 12.0 12.1 7.2 0.560 0.689 0.429

2.750 10 2.165 -11.7 -9.1 -1.7 -12.9 2.214 2.535 2.565

0.500 U.S. 2 0.424 ... ... ... ... 0.440 0.568 0.358

2.375 10 2.282 ... ... ... ... 2.305 2.553 2.694

Key money ratesLatest 52wks ago

Prime rates

U.S. 3.25% 3.25%

Canada 3.00 3.00

Japan 1.475 1.475

Britain 0.50 0.50

ECB 0.05 0.50

Switzerland 0.50 0.50

Australia 2.50 2.50

HongKong 5.00 5.00

Libor

Onemonth 0.15280% 0.17400%

Threemonth 0.23000 0.24360

Sixmonth 0.31980 0.36340

One year 0.55255 0.62760

Latest 52wks ago

Euro Libor

Onemonth 0.00571% 0.08429%

Threemonth 0.05500 0.16286

Sixmonth 0.14286 0.26786

One year 0.30214 0.48000

Euribor

Onemonth 0.00600% 0.12800%

Threemonth 0.07900 0.22700

Sixmonth 0.17800 0.34000

One year 0.33300 0.54000

Hibor

Onemonth 0.22286% 0.21571%

Threemonth 0.37364 0.38429

Sixmonth 0.53495 0.54643

One year 0.83714 0.87214

Offer Bid

Eurodollars

Onemonth 0.2000% 0.1000%

Threemonth 0.2500 0.1500

Sixmonth 0.3300 0.2300

One year 0.5800 0.4800

Latest 52wks ago

U.S. discount 0.75% 0.75%

Fed-funds target 0.00 0.00

Callmoney 2.00 2.00

Overnight repurchase rates

U.S. 0.06% 0.19%

Euro zone -0.04 0.07

Sources:WSJMarketDataGroup, SIX Financial Information, ICAP

U.S. Treasury yield curveThe curve shows the yield to maturity of current bills, notes and bonds; all data as of 3 p.m. ET.

maturity

1month(s)

3 6 1years

2 3 5 710 30

5%

4

3

2

1

0

s One year ago

s

Friday

TOTALRETURNYield to Modified Month Quarter Year

Ryan Index maturity duration to-date to-date to-date 12-month

30-year Treasury 3.035% 19.33 3.54% 3.54% 22.60% 18.88%10-year Treasury 2.305 8.71 1.85 1.85 9.39 7.117 Year Treasury 1.997 6.45 1.54 1.54 5.94 4.40Five-year Treasury 1.558 4.75 1.11 1.11 3.21 2.51Ryan Index 1.707 7.36 1.49 1.49 7.05 5.813 Year Treasury 0.901 2.95 0.60 0.60 1.45 1.55Two-year Treasury 0.444 1.96 0.30 0.30 0.88 1.001 Year Treasury 0.081 0.94 0.02 0.02 0.31 0.41Six-month Treasury 0.046 0.50 ... ... 0.12 0.13Ryan Cash Index-a 0.038 0.44 0.01 0.01 0.12 0.17Three-month bill 0.010 0.25 ... ... 0.05 0.07

One-month bill 0.015 0.07 ... .... 0.02 0.06

a-Performance of a cash investment Source: Ryan ALM

SCANNING THE GLOBE


WORLD NEWS: CHINA

StrongTradeGrowthBuoysChineseEconomy

BEIJINGChinas exports andimports rose faster than expected inSeptember, providing a modicum ofgood news in the worlds second-largest economy as Beijing aims tomeet its 7.5% annual growth target.

Exports have been a rare sourceof economic strength in recentmonths fueled by growing global de-mand, even as weak real estatesales, industrial production andfixed-asset investment in China dragdown growth.

Chinas customs agency saidMonday it expects stronger exportsand imports to continue in thefourth quarter.

These are very heartening num-bers, said ING economist Tim Con-don. It looks like exports haveratcheted up.

The stronger-than-expected im-port figure also should allay fearsthat the domestic economy is decel-erating too quickly, Mr. Condonadded. Chinas big enough to helpsentiment for the global economy.This is good news, he said.

But economists said trade fig-ures have been volatile, and it is tooearly to suggest that domestic de-mand in China is turning around.

Exports rose 15.3% in Septemberfrom a year earlier, according to

data from the General Administra-tion of Customs.

Septembers export growth ex-ceeded Augusts 9.4% growth andwas higher than the median forecastof 12.5% by The Wall Street Jour-nals poll of 15 economists. Chinasexports have been rising since Aprilas the U.S. economy started to pickup, along with demand from partsof Asia and Europe.

Imports in September rose 7%from a year earlier, following a 2.4%decline in August. Economists wereforecasting a drop of 2.4%. The in-creased imports caused Chinastrade surplus to narrow in Septem-ber to $31 billion from $49.8 billionin August, which was below a me-dian forecast for the surplus of $42billion.

Customs spokesman ZhengYuesheng attributed Septembersstrong exports to the governmentstargeted support measures, reducedred tape and continued economic re-covery abroad. Some analysts, in-cluding CMB economist Fan Zhang,also said demand for the iPhone 6may have played a role in thehigher-than-expected import and ex-port figures.

Mr. Zheng said China is losing itscompetitive advantage as costs rise.

Foreign investors from advancedeconomieswhich are linked tonearly half of the nations exportsare investing less in the manufac-turing sector, he said, which wouldcurb exports in the medium term.Falling commodities prices havealso been a drag on import growthas measured in dollar terms, Mr.Zheng added.

Regardless of the challenges, weexpect exports and imports willlikely continue to improve in thefourth quarter, Mr. Zheng added.

It is indeed very difficult toachieve the 7.5% total trade growthtarget for this year, but Id like tostress that Chinas trade has beenimproving quarter from quarter, hesaid. The growth target is indeedimportant, but medium-to-highgrowth rates have become the newnorms.

In a survey by the General Ad-ministration of Customs in Septem-ber, 34% of exporters polled re-ported an increase in new orders, up4.6 percentage points from the pre-vious month, while 32.4% of thecompanies said they were optimisticabout the exports outlook over thenext two or three months, a rise of6.9 percentage points.

Liyan Qi and Mark Magnier

An aerial picture taken last month shows the container pier at the Yangshan deep-water port outside Shanghai.

ZumaPress

Cheap Prices LiftSteel Sales Abroad

BEIJINGChinas exports ofsteel products rose to a fresh recordlast month, up sharply from a yearearlier, as steelmakers boostedcheap sales abroad to make up forprice cuts at home.

Chinese mills typically use ex-ports as a means to bolster saggingdomestic sales, a move that has of-ten threatened to swamp globalmarkets and led to trade frictionwith major importers, such as Eu-rope and the U.S. Chinese steel offi-cials say they are trying to get millsto cut back on such exports.

September net exports of steelproducts reached 7.2 million metrictons, rising 4.5% from the last highposted in May. Steel exports for thefirst nine months of the year are up39% to 65.3 million tons. Net ex-ports are exports less imports.

By absolute volume, exportsreached 8.5 million tons, also a re-cord. September shipments rose73% from a year earlier.

The U.S. remains a top destina-tion for Chinese steel exports. Weakmanufacturing conditions and slackdemand for steel spurred price cutsand exports among domestic steel-makers, according to Applied Value,a consulting firm.

Cheap Chinese steel prices areboosting exports to record levels. Inthe U.S., current domestic hot-rolledsteel prices are $209 higher per ton,the firm said. Hot-rolled steel is

used to make products such as cars.Past surges in Chinese steel ex-

ports have triggered disputes withthe U.S., Europe and other tradingpartners, who say Beijing unfairlysubsidizes its steel producers andsells products globally at below-market prices.

In May, Washington imposed pre-liminary tariffs of 159.2% on importsof Chinese grain-oriented electricalsteel, which is used to make trans-formers. Last year, U.S. steelmakers

filed 38 trade cases, the highestnumber of such complaints in morethan a decade, calling for the govern-ment to impose higher tariffs andpenalties on what they called un-fairly traded steel.

Shandong Jingta Steel Co., asmaller firm that trades on behalf ofproducers, said it has seen exportsrising among its clients on a level inline with the customs data.

Domestic consumption has beendeclining since the start of the year,without much reduction in produc-tion. So as long as theres an oppor-tunity to export, people will take it,said Wendy Qin, a manager atJingta.

BY CHUIN-WEI YAP

Chinese mills often use exports as a means to bolster sagging domestic sales.Zu

maPress

Chinas September Auto-Sales Gains Hit 19-Month Loweconomy and high inventory at deal-ers.

On Monday, Credit Suisse cut itsprice target for BMW AG shares inpart because it said the German carmakers China sales were weakerthan expected. Sales of BMW andMini brands in China rose less than4% in September, the report said.BMW, which said it doesnt com-ment on outside estimates, said it isconfident it will hit moderate salesgrowth by the end of the year.

The economic situation has hada spillover effect on the car indus-try, especially in midsize cities witha population of about five million,where economies are facing greaterdownward pressure, said Peng Bo,a consultant with Strategy&. He ex-pects Chinas passenger car sales torise up as much as 10% this year,compared with a 16% gain in 2013.

Jessica Zhu, a 34-year-oldShanghai bank credit manager, is

Continued from first page

putting off a car purchase. She fig-ures it is too expensive and trouble-some to own a car. Driving in bigcities like Shanghai is not thatpleasant, she said. Parking is get-

ting more expensive and difficult.You will also have to worry aboutmaintenance issues from time totime.

Fang Yongbin, 36, who works inthe publishing industry, echoedthose concerns. On top of the one-off car-purchasing cost, you shouldspend at least 20,000 yuan ($3,300)a year to maintain a car. That is tooexpensive, he said. Since publictransportation has significantly im-proved in Shanghai, I dont think itis necessary to own a car.

According to the China Automo-bile Dealers Association, a tradegroup, inventories at dealers stoodat about 45 days in September, upfrom 36 days in the year-earlier pe-riod. Luo Lei, an executive at CADA,said the inventories of importedcars were running at about twomonths as growth has weakened.

At a briefing in Beijing on Mon-day, Yao Jie, a CAAM deputy secre-tary-general, said an index measur-

ing the prosperity of the autoindustry fell 3.4 percentage pointsin the third quarter from the secondquarter. Inventories are continuingto increase, he said, without dis-closing further details.

China remains a stronger growthengine than the U.S. and Europe,and continues to be a source ofstrength for many car makers. Gen-eral Motors Co.s sales in Chinarose 15% last month compared witha year earlier. Ford Motor Co.s carsales fell 4% in September from ayear ago, the auto makers firstmonthly drop in more than twoyears, but analysts attributed thatdecline to capacity constraints.

Chinas first-quarter economicgrowth came in at 7.4%, its slowestpace in 18 months. Second-quartergrowth rose slightly to 7.5%, butmeasures of trade, property pricesand manufacturing activity suggestmomentum slipped in the thirdquarter.

Ye Sheng, an analyst at marketresearch firm Ipsos, said pressurefrom Beijing could be contributingto weakening sales.

A number of foreign auto makershave faced scrutiny from antitrustregulators over their business prac-tices with dealers as well as theirpricing of spare parts and services.Mr. Ye said that could affect the carassociations sales figures becausethey measure wholesale deliveriesto dealers, not retail figures.

Auto makers had usuallypressed dealers to take more ordersthan they needed. But such pressureon dealers has eased due to the an-titrust move, he said.

China in September levied acombined $45.8 million fine againstlocal affiliates of Volkswagens AudiAG arm and Chrysler, owned by FiatChrysler Automobiles NV, after al-leging they manipulated prices ofvehicles and parts.

Rose Yu and Lilian Lin

Losing TractionChange in Chinas monthly passengercar sales from a year earlier


Source: The China Association of AutomobileManufacturers

60

10

0

10

20

30

40

50

%

142013

Sept.: 6.40%

Past surges in Chinesesteel exports havetriggered trade disputes.


WSJ.com>>Follow the markets throughout the day with updated stock quotes, news and commentary at atWSJ.com. Also, receive email alerts that summarize the days trading in Europe and Asia. To signup, go to WSJ.com/Email

Commodities Prices of futures contractswith themost open interestEXCHANGE LEGEND: CBOT: Chicago Board of Trade; CME: ChicagoMercantile Exchange;NYBOT: NewYork Board of Trade; MDEX:BursaMalaysiaDerivatives Berhad; LIFFE: London International Financial Futures Exchange; LME: LondonMercantile Exchange;NYMEX:NewYorkMercantile Exchange;ICE: IntercontinentalExchange. *Data as 10/10/2014.

ONE-DAY CHANGE Year YearCommodity Exchange Last price Net Percentage high low

Corn (cents/bu.) CBOT 341.00 7.00 2.10% 517.00 318.25Soybeans (cents/bu.) CBOT 934.50 12.00 1.30 1,279.25 904.00Wheat (cents/bu.) CBOT 503.25 4.75 0.95 765.00 466.25Live cattle (cents/lb.) CME 166.725 1.425 0.86 169.600 131.500Cocoa ($/ton) ICE-US 3,060 -97 -3.07% 3,399 2,639Coffee (cents/lb.) ICE-US 221.65 1.25 0.57 225.50 119.90Sugar (cents/lb.) ICE-US 16.66 0.11 0.66 19.83 15.51Cotton (cents/lb.) ICE-US 64.71 0.61 0.95 84.74 60.83Rapeseed (euro/ton) LIFFE 328.50 -1.25 -0.38 385 315Cocoa (pounds/ton) LIFFE 1,965 -45 -2.24 2,133 1,637Robusta coffee ($/ton) LIFFE 2,183 7 0.32 2,215 1,602

Copper ($/lb.) COMEX 3.0375 0.0025 0.08 3.3570 2.8845Gold ($/troy oz.) COMEX 1229.80 8.10 0.66 1,390.80 1,190.30Silver ($/troy oz.) COMEX 17.385 0.082 0.47 22.240 16.645Aluminum ($/ton)* LME 1,922.50 -33.50 -1.71 2,113.50 1,686.50Tin ($/ton)* LME 20,080.00 -100.00 -0.50 23,770.00 20,080.00Copper ($/ton)* LME 6,640.00 -72.50 -1.08 7,422.00 6,430.00Lead ($/ton)* LME 2,067.00 -28.50 -1.36 2,287.00 2,033.00Zinc ($/ton)* LME 2,315.00 -24.00 -1.03 2,410.00 1,948.00Nickel ($/ton)* LME 16,400 -310 -1.86 21,100 13,425

Crude oil ($/bbl.) NYMEX 84.11 -1.00 -1.17 103.66 82.80Heating oil ($/gal.) NYMEX 2.5448 -0.0154 -0.60 3.0945 2.5035RBOB gasoline ($/gal.) NYMEX 2.2150 -0.0188 -0.84 2.8110 2.1863Natural gas ($/mmBtu) NYMEX 4.048 0.013 0.32 5.0910 3.8350Brent crude ($/bbl.) ICE-EU 88.96 -1.62 -1.79 113.19 87.10Gas oil ($/ton) ICE-EU 762.00 -1.75 -0.23 948.50 751.50

Sources: SIX Financial Information;WSJMarket Data Group

Currencies London close onOct. 13Per In

AMERICAS Per euro In euros U.S. dollar U.S. dollars

Argentina peso-a 10.7487 0.0930 8.4730 0.1180

Brazil real 3.0294 0.3301 2.3880 0.4188

Canada dollar 1.4200 0.7042 1.1193 0.8934

Chile peso 747.90 0.001337 589.56 0.001696

Colombia peso 2598.67 0.0003848 2048.50 0.0004882

EcuadorUS dollar-f 1.2686 0.7883 1 1

Mexico peso-a 17.0124 0.0588 13.4106 0.0746

Peru sol 3.6845 0.2714 2.9045 0.3443

Uruguay peso-e 30.969 0.0323 24.413 0.0410

U.S. dollar 1.2686 0.7883 1 1

Venezuela bolivar 8.06 0.124139 6.35 0.157480

ASIA-PACIFIC

Australia dollar 1.4480 0.6906 1.1415 0.8761

1-mo. forward 1.4515 0.6890 1.1442 0.8740

3-mos. forward 1.4576 0.6860 1.1490 0.8703

6-mos. forward 1.4671 0.6816 1.1565 0.8647

China yuan 7.7695 0.1287 6.1246 0.1633

Hong Kong dollar 9.8427 0.1016 7.7588 0.1289

India rupee 77.3717 0.0129 60.9910 0.0164

Indonesia rupiah 15489 0.0000646 12210 0.0000819

Japan yen 136.22 0.007341 107.38 0.009313

1-mo. forward 136.18 0.007343 107.35 0.009315

3-mos. forward 136.08 0.007349 107.27 0.009322

6-mos. forward 135.97 0.007355 107.18 0.009330

Malaysia ringgit-c 4.1375 0.2417 3.2615 0.3066

NewZealand dollar 1.6118 0.6204 1.2706 0.7870

Pakistan rupee 130.403 0.0077 102.795 0.0097

Philippines peso 56.768 0.0176 44.749 0.0223

Singapore dollar 1.6138 0.6197 1.2721 0.7861

South Koreawon 1352.04 0.0007396 1065.80 0.0009383

Taiwan dollar 38.570 0.02593 30.405 0.03289

Thailand baht 41.119 0.02432 32.413 0.03085

Per InEUROPE Per euro In euros U.S. dollar U.S. dollars

Euro zone euro 1 1 0.7883 1.2686

1-mo. forward 0.9998 1.0002 0.7881 1.2689

3-mos. forward 0.9994 1.0006 0.7878 1.2694

6-mos. forward 0.9988 1.0012 0.7873 1.2701

Czech Rep. koruna-b 27.544 0.0363 21.712 0.0461

Denmark krone 7.4441 0.1343 5.8681 0.1704

Hungary forint 305.54 0.003273 240.85 0.004152

Norway krone 8.2406 0.1213 6.4960 0.1539

Poland zloty 4.1911 0.2386 3.3038 0.3027

Russia ruble-d 51.367 0.01947 40.492 0.02470

Sweden krona 9.0889 0.1100 7.1647 0.1396

Switzerland franc 1.2079 0.8279 0.9522 1.0502

1-mo. forward 1.2076 0.8281 0.9520 1.0505

3-mos. forward 1.2069 0.8286 0.9514 1.0511

6-mos. forward 1.2057 0.8294 0.9504 1.0522

Turkey lira 2.8786 0.3474 2.2692 0.4407

U.K. pound 0.7895 1.2666 0.6224 1.6068

1-mo. forward 0.7897 1.2663 0.6225 1.6064

3-mos. forward 0.7901 1.2656 0.6228 1.6055

6-mos. forward 0.7909 1.2643 0.6235 1.6039

MIDDLE EAST/AFRICA

Bahrain dinar 0.4782 2.0912 0.3770 2.6528

Egypt pound-a 9.0671 0.1103 7.1475 0.1399

Israel shekel 4.7414 0.2109 3.7376 0.2676

Jordan dinar 0.8997 1.1114 0.7093 1.4099

Kuwait dinar 0.3662 2.7306 0.2887 3.4639

Lebanon pound 1922.15 0.0005203 1515.20 0.0006600

Saudi Arabia riyal 4.7590 0.2101 3.7515 0.2666

South Africa rand 13.9999 0.0714 11.0359 0.0906

United Arab dirham 4.6595 0.2146 3.6731 0.2723

a-floating rate b-commercial rate c-government rate c-commercial rate d-Russian Central Bank rate.Source: ICAPPlc.

Major stock market indexes Stock indexes fromaround theworld, grouped by region. Shown in local-currency terms.PREVIOUS SESSION PERFORMANCE

Region/Country Index Close Net change Percentage change Yr.-to-date 52-wk.

ASIA-PACIFIC DJAsia-Pacific TSM 1413.30 -2.59 -0.18% -2.4% -2.0%

Australia SPX/ASX 200 5155.50 -32.80 -0.63 -3.7 -1.0

China Shanghai Composite 2366.01 -8.53 -0.36 11.8 5.7

Hong Kong Hang Seng 23143.38 54.84 0.24% -0.7 -0.3

India S&PBSE Sensex 26384.07 86.69 0.33 24.6 28.0

Indonesia Jakarta Composite 4913.05 -49.91 -1.01 14.9 8.7

Japan Nikkei Stock Average 15300.55 Closed -6.1 6.2

Topix 1243.09 Closed -4.5 3.8

Malaysia Kuala Lumpur Composite 1797.20 -11.68 -0.65 -3.7 0.7

NewZealand NZSX-50 5170.05 -55.09 -1.05 9.1 9.1

Pakistan KSE 100 30394.41 235.78 0.78 20.3 40.7

Philippines PSEi 6968.09 -199.26 -2.78 18.3 8.2

Singapore Straits Times 3202.15 -21.72 -0.67 1.1 1.2

South Korea Kospi 1927.21 -13.71 -0.71 -4.2 -4.6

Taiwan Weighted 8711.39 -255.05 -2.84 1.2 5.3

Thailand SET 1542.35 -10.37 -0.67 18.8 5.7

EUROPE Stoxx Europe 600 321.56 -0.06 -0.02 -2.0 3.2

Stoxx Europe 50 2892.49 8.07 0.28 -0.9 4.1

PREVIOUS SESSION PERFORMANCERegion/Country Index Close Net change Percentage change Yr.-to-date 52-wk.

Euro Zone Euro Stoxx 299.78 0.09 0.03% -4.6% ...

Euro Stoxx 50 2998.32 6.82 0.23 -3.6 0.8%

Denmark OMXCopenhagen 635.32 -3.16 -0.50% 12.3 21.0

Finland OMXHelsinki 7211.07 -9.70 -0.13 -1.7 5.0

France CAC-40 4078.70 4.99 0.12 -5.1 -3.3

Germany DAX 8812.43 23.62 0.27 -7.7 1.0

Italy FTSEMIB 19139.08 -61.89 -0.32 0.9 1.4

Netherlands AEX 394.33 -1.35 -0.34 -1.9 4.8

Russia RTSI 1076.58 12.29 1.15 -25.4 -27.1

Spain IBEX 35 10187.3 36.80 0.36 2.7 5.4

Switzerland SMI 8342.07 -32.52 -0.39 1.7 5.1

Turkey BIST 100 75115.72 1621.66 2.21 10.8 -1.4

U.K. FTSE 100 6366.24 26.27 0.41 -5.7 -1.9

AMERICAS DJAmericas 473.34 -0.85 -0.18 1.6 9.1

Brazil Bovespa 57678.51 2366.92 4.28 12.0 8.5

Argentina Merval 10040.24 Closed 86.2 91.5

Mexico IPC 43379.82 -55.91 -0.13 1.5 5.9

European andAmericas index data are as of 12:00 p.m. ET. Sources: SIX Financial Information;WSJMarketDataGroup

Cross rates U.S.-dollar and euro foreign-exchange rates in global tradingUS$ A$ C$ YUAN EURO HK$ RUPEE RUPIAH YEN NZ$ WON RINGGIT PH. PESO S$ SFRANC TW$ BAHT

U.S. 1.141 0.622 1.119 6.125 0.788 7.759 60.991 12209.95 107.376 1.271 1065.80 3.262 44.749 1.272 0.952 30.405 32.413Australia 0.876 0.545 0.981 5.366 0.691 6.797 53.432 10696.64 94.068 1.113 933.70 2.857 39.203 1.114 0.834 26.636 28.396

Britain 1.607 1.834 1.799 9.841 1.267 12.467 98.001 19619.09 172.533 2.042 1712.53 5.241 71.903 2.044 1.530 48.854 52.082Canada 0.893 1.020 0.556 5.472 0.704 6.932 54.488 10908.14 95.928 1.135 952.16 2.914 39.978 1.137 0.851 27.163 28.957China 0.1633 0.186 0.102 0.183 0.129 1.267 9.958 1993.59 17.532 0.207 174.02 0.533 7.306 0.208 0.155 4.964 5.292Euro 1.269 1.448 0.789 1.420 7.770 9.843 77.372 15489.26 136.215 1.612 1352.04 4.137 56.768 1.614 1.208 38.570 41.119

HongKong 0.129 0.147 0.080 0.144 0.789 0.102 7.861 1573.68 13.839 0.164 137.37 0.420 5.767 0.164 0.123 3.919 4.178India 0.0164 0.0187 0.0102 0.0184 0.1004 0.0129 0.1272 200.19 1.7605 0.0208 17.47 0.0535 0.7337 0.0209 0.0156 0.4985 0.5314

Indonesia 0.0001 0.0001 0.0001 0.0001 0.0005 0.0001 0.0006 0.0050 0.0088 0.0001 0.09 0.0003 0.0037 0.0001 0.0001 0.0025 0.0027Japan 0.009 0.011 0.006 0.010 0.057 0.007 0.072 0.568 113.71 0.012 9.93 0.030 0.417 0.012 0.009 0.283 0.302

NewZealand 0.787 0.898 0.490 0.881 4.820 0.620 6.107 48.003 9609.78 84.510 838.83 2.567 35.219 1.001 0.749 23.930 25.511SouthKorea 0.0009 0.0011 0.0006 0.0011 0.0057 0.0007 0.0073 0.0572 11.46 0.1007 0.0012 0.0031 0.0420 0.0012 0.0009 0.0285 0.0304

Malaysia 0.307 0.350 0.191 0.343 1.878 0.242 2.379 18.700 3743.66 32.922 0.390 326.78 13.720 0.390 0.292 9.322 9.938Philippines 0.022 0.026 0.014 0.025 0.137 0.018 0.173 1.363 272.85 2.400 0.028 23.82 0.073 0.028 0.021 0.679 0.724Singapore 0.786 0.897 0.489 0.880 4.814 0.620 6.099 47.944 9597.96 84.406 0.999 837.80 2.564 35.176 0.748 23.900 25.479

Switzerland 1.050 1.199 0.654 1.176 6.432 0.828 8.148 64.054 12823.13 112.769 1.334 1119.32 3.425 46.996 1.336 31.931 34.041Taiwan 0.033 0.038 0.020 0.037 0.201 0.026 0.255 2.006 401.58 3.532 0.042 35.05 0.107 1.472 0.042 0.031 1.066

Thailand 0.031 0.035 0.019 0.035 0.189 0.024 0.239 1.882 376.70 3.313 0.039 32.88 0.101 1.381 0.039 0.029 0.938

Source: ICAPPlc.

Price-to- PERFORMANCEDividend earnings Net Year- Three-yr.,yield* ratio* S&PDowJones Index Last change Daily to-date 52-wk. annualized

0.99%26.77 Shenzhen -c 396.55 -0.67 -0.17% 21.1% 15.0% 3.6%1.92 20.89 U.S. TSM 19687.61 -24.38 -0.12 1.4 9.3 16.55.37 17.20 Global SelectDiv 237.61 0.89 0.38 -5.0 -1.7 5.35.65 15.53 Asia/Pacific SelectDiv 318.14 -0.35 -0.11 -4.9 -6.7 3.3

HongKongSelectDiv -c 195.65 -0.21 -0.11 -2.1 -4.1 4.5U.S. SelectDividend -d 1301.89 3.93 0.30 5.2 11.9 17.6

2.07 19.64 IslamicMarket 2724.21 -2.76 -0.10 -0.6 5.9 10.12.37 17.31 IslamicMarket 100 3048.57 -1.54 -0.05 1.4 9.8 12.42.47 12.38 Islamic China/HKTitans 30 1747.60 -5.12 -0.29 4.0 4.0 7.2

SustainabilityKorea -c 1421.99 -2.46 -0.17 -3.4 -4.2 -0.33.53 25.09 Brookfield Infrastructure 3455.97 4.66 0.14 8.6 13.2 13.6

DJCommodity 626.11 1.20 0.19 -9.5 -11.2 -5.4

MSCI indexesDeveloped and emerging-market regional and country indexesfromMSCI as of October. 13, 2014

Price-to- LOCAL-CURRENCYDividend earnings PERFORMANCEyield ratio MSCI Index Last Daily YTD 52-wk.

2.50% 17 MSCIACWI 400.45 1.64% -2.0% 4.8%

2.40 17 World (DevelopedMarkets) 1,626.68 1.61 -2.1 5.4

1.90 24 WorldSmall Cap 296.41 1.91 -7.1 -0.5

2.50 18 Kokusai (World ex-Japan) 1,643.77 1.64 -1.5 6.5

3.10 16 EAFE 1,748.97 2.13 -8.7 -3.8

2.80 12 EmergingMarkets (EM) 989.87 1.87 -1.3 0.2

3.00 13 ACASIAPACIFICEX-JAPAN 466.16 1.76 -0.4 1.5

2.70 12 ACFar East ex-Japan 523.59 1.27 -0.6 2.1

1.80 15 Japan 763.85 -1.32 -5.1 3.8

3.40 9 China 62.07 -1.93 -1.6 2.0

2.20 12 ChinaA (ChinaDomestic) 2,494.57 -0.55 8.4 5.2

2.80 14 HongKong 13,566.81 -1.45 1.5 4.5

1.40 18 India 986.86 -0.87 20.8 31.4

1.10 10 Korea 535.18 -1.46 -9.2 -7.2

3.00 16 Malaysia 635.18 -1.19 -4.8 0.2

3.40 13 Singapore 1,693.68 -1.17 -0.3 0.6

3.10 16 Taiwan 327.30 0.00 8.1 13.7

2.90 15 Thailand 539.17 -0.82 17.1 10.1

4.60 15 Australia 1,063.06 -2.01 -2.8 -0.2

4.40 20 NewZealand 109.10 -1.16 3.9 0.3

1.90 19 USBROADMARKET 2,140.78 1.28 1.7 11.4

3.30 17 EUROPE 109.90 -1.58 -2.0 3.5

Source:MSCI

*Fundamentals are based on data inU.S. dollar. Footnotes: c-in local currency. d-dividends reinvested. p-previous day. Note: All data as of 11:30 a.m. ET. Source: S&PDowJones Indices

S&P Dow Jones IndicesPrice-to- PERFORMANCE

Dividend earnings Net Year- Three-yr.,yield* ratio* S&PDowJones Index Last change Daily to-date 52-wk. annualized

2.39%18.94 Global TSM 3160.74 3.03 0.10% -2.2% 3.0% 10.7%2.94 17.46 GlobalDOW 2440.35 9.50 0.39 -1.8 3.4 10.22.85 15.11 Global Titans 50 233.16 0.23 0.10 0.1 7.0 11.32.41 15.14 Asia/Pacific TSM 1413.95 -1.94 -0.14 -2.4 -1.9 5.42.34 15.51 S&PBMIAsiaPacEmgMkts 166.64 0.43 0.26 -5.5 -5.1 5.13.23 19.71 DevEuropeTSM 3066.52 18.14 0.60 -9.5 -3.3 8.52.76 14.57 S&PBMIEmgMarkets 258.17 0.12 0.05 1.4 -0.5 2.93.22 11.02 AsianTitans 50 141.56 0.33 0.23 -7.0 -7.4 5.33.31 9.95 BRIC50 522.17 8.25 1.61 4.0 1.7 0.62.87 10.86 S&PBMIChina 440.83 -2.13 -0.48 -2.0 0.3 6.53.30 9.37 ChinaOffshore 50 4149.23 -4.32 -0.10 -1.0 0.5 5.41.88 13.61 Shanghai -c 316.55 -1.07 -0.34 14.2 7.2 1.3

GLOBAL MARKETS LINEUP


WORLD NEWS: HONG KONG

Clashes Erupt Over Removal of BarricadesChinese leaders typically call

Hong Kong officials to the mainlandfor instructions, though it was un-clear whether that occurred overthe weekend.

Ahead of that meeting, in Guang-zhou, just northwest of Hong Kong,the government canceled talks withstudents. Both sides have sincehardened their positions.

On Monday, Hong Kong Chief Ex-ecutive Leung Chun-ying didntcomment on whether the city hadset a deadline to clear the protestsites.

The Hong Kong government andthe police will continue to exercisea high level of tolerance, he said inGuangzhou. Still, this situationcant last for long, he said as healso vowed that he wouldnt heedprotesters demand that he resign.I dont need to resign, Mr. Leungsaid.

The students had consideredopening the road over the weekendbut decided to use it as a bargainingchip. The other protest sites are ba-sically intersections rather thanstretches of road.

To be honest, what we can do isto defend our demonstration sites,said Alex Chow, one of the leadersof the Hong Kong Federation of Stu-dents.

The crackdown on the roadblocks appeared well-orchestrated.Just before dawn on Monday, police,some carrying riot gear, quickly dis-mantled unattended barriers on sev-eral streets and then left. Hourslater, groups of men, many wearingsurgical masks, appeared in the areaand started taking down barricades.They were quickly followed by doz-ens of honking red taxis and a largegarbage truck with a crane and re-fuse container, which began tearingdown barricades and tents.

Those guys from the truck cutand tore down tents on the protestsite and put them on the truck,said Eric Chiu, an onlooker who saidhe wasnt involved in the protests.

Continued from first page

The truck was surrounded by po-lice and later released, while thetaxis and masked men also left thescene, leaving students sitting in thestreet, still blocking traffic but withtheir barricades gone.

As evening fell Monday, studentswere rebuilding barricades usinglong bamboo poles typically usedfor building scaffolding in HongKong. They still held roughly thesame 5.6 kilometers of roads in thearea.

To Sun-tong, director of the Mo-tor Transport Workers GeneralUnion Taxi Driver Branch, said hisunion and another taxi driversunion tried to tear down the barri-cades. He said drivers tried to talkto students about opening up theroad, but the students wouldnt lis-ten.

Many taxi drivers have wantedto do this for a long time, Mr. Tosaid. As I said, if you are unwillingto talk, we will do it without any

warnings.Occupy Central, one of the three

groups leading the protests, con-demned the polices actions.

We urge the police to enforcethe law and prevent certain peoplefrom damaging the peaceful [pro-test] movement, and avoid any sus-picion that the government may betrying to use the masses to attackthe masses, the group said in astatement.

On Monday evening, a couple ofthousand protesters had gathered atthe main protest site in the Admi-ralty district of government build-ings.

Three men in their early 30s saidthey had come because of the scuf-fles earlier in the day. One of them,32-year-old Diskie Ng, a projectmanager, said, I want to show sup-port for the demonstrators. We havebeen fighting, and were not goingto give up.

Many of the protesters sat hud-

dled over books at a Study Cornerfor students.

Police spokesman Steve Hui saidin a news conference Monday after-noon that the attempt to removeobstacles on Queensway had re-sulted in confrontations. He said po-lice deployed reinforcement to sepa-rate people holding different viewsto safeguard public safety.

Reinforcing the existing obsta-cles or setting up new obstacles toenlarge the occupied area and toblock the roads is illegal and ex-tremely irresponsible, he said.

He said police would clear moreroad obstacles, including in thebusiness district of Causeway Bay,to recover part of the roads forpublic transport but wouldnt take

action to clear protesters.Monday evening, some barri-

cades in Causeway Bay had been re-inforced with concrete.

While no group has set a dead-line for when the protests must end,two coming events in China coulddrive the standoff to a conclusion.Next week, an important CommunistParty policy meeting is scheduled tobe held in Beijing with the rule oflaw as a key topic on the agenda.And in November, leaders from Asiaand the U.S., including President Ba-rack Obama, will gather in Beijingfor the Asia-Pacific Economic Coop-eration forum.

Chester Yungand Dean Napolitano

contributed to this article.

A man jabs his fingers in the throat of a pro-democracy protester on Monday.

AgenceFrance-Presse/Getty

Images

Road Rage | Protesters block Hong Kong roads

Kilometers of road blocked*

Admiralty

Mong Kok

Causeway Bay

Neighborhood

Note: 1km = 0.62 mile*Includes partially blocked roadsSources: Highways Department (total length, 2014); staff reports


0.14

0.07

2,093 kmTotal length of the roads in Hong Kong:

Area of detail

Blockade

Affected area

Reopened road

0.5 mile

0.5 km

5.6 km

HONG KONG ISLAND

Victoria Harbour

HONG KONG I.

Admiralty

HONG KONGHONG KONG

Causeway Bay

Mong KokAdmiralty

Area of confrontationon Monday

Mong Kok Rally a Wild CardHong Kongs student protest

leaders have been feted as near-ce-lebrities at the main protest site ofAdmiralty. But that isnt the case inthe Mong Kok district.

Across Victoria Harbour in Kow-loon, Mong Kok is one of three sitesthat has been occupied by protest-ers for more than two weeks. There,student leaders are largely ignoredand efforts by students to organizewere met with shouts such as youdont represent us.

The lack of control over MongKok could prove to be a complica-tion should the student leaders seekto change their strategy or reach adeal with the government.

The divide marks the biggestsplit so far among the protesters inthe occupation. On Monday, protest-ers in Admiralty, by far the biggestsite, battled with crowds that toredown their barricades, rallying tocalls on social media to defend theirterritory.

Before that confrontation, thesite in Admiralty and another inCauseway Bay were defined by tran-quil scenes of students studying andarrays of umbrella artwork. Overthe weekend, dancers performed inCauseway Bay.

In the working-class neighbor-hood of Mong Kok, the scene has aharsher edge as protesters debateand exchange insults, often usingcolorful language, with pro-govern-ment passersby. The age range ofprotesters is wider in Mong Kokthan other sites, which are filledwith mostly high school and collegestudents.

A week into the occupation,thugs descended on the protestersin Mong Kok, leading to a night ofshoving and taunting as policefailed to quell the disturbance. Theprotesters seized control by sur-rounding and chasing down theiropponents. Many in Mong Kok saythat event sets them apart from therest of the protesters.

Only those who have defendedMong Kok are true Hong Kongmen, says a poster that hangs inMong Kok, a printout of a graphicthat has been circulating onlinesince the day after the assaults.

Protesters at Mong Kok are ada-mant that there is no leader to themovement, only the people, ac-cording to a popular slogan.

Hoping to reconnect with theMong Kok protesters, leaders of theHong Kong Federation of Studentswent there Sunday afternoon butwere heckled when they called forunity. The group has had to make

repeated assurances that they arenot going to ask people to give upMong Kok.

I know the HKFS cannot repre-sent all Hong Kong citizens. Thatswhy HKFS is trying to do more com-munication work in Mong Kok andrecruit more student helpers there,said Ting Ka-ki, a standing commit-tee member of the student federa-tion, which represents universitystudents and is one of the threemain groups leading the protestmovement. The group set up a yel-low tent and has stationed membersthere overnight.

The protest sits in the middle ofthe intersection of two of Kowloonsmain thoroughfares, a block awayfrom the high-end Langham Placemall, where Swedish retailer H&Mwas forced to close its entranceamid the clashes between protestersand opponents.

I am angry by [HKFSs] loftystance. The federation came toMong Kokonly to seek opinionsfrom university students. So theydont care about high-school stu-dents like me? said Liu Cheuk-laam, a high-school student.

The HKFS cannot represent ourdecision on clearing this site. Wewill not leave before the Hong Konggovernment promises civil nomina-tion.

BY ISABELLA STEGERAND LORRAINE LUK

T H E B O U T I Q U E S

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Giants around the world

Dow Jones Country TitansINDEXPERFORMANCE

Previous session Year-to-date 52-week

Turkey 2.34% 11.9% -0.1%

Spain 0.31 6.3 10.5

Italy -0.32 2.1 1.9

China 88 -0.87 1.9 -4.2

Brazil 4.65 1.2 -7.1

HongKong 0.86 0.7 2.4

Switzerland -0.39 -0.4% 2.3

Singapore -0.81 -0.4 -0.7

Sweden -0.58 -3.5 1.5

Netherlands -1.66 -3.7 1.8

France -0.004 -4.8 -3.3

U.K. 0.46 -5.4 -2.0

SouthKorea 0.17 -8.6 -8.7

Germany 0.24 -10.2 -1.8

Dow Jones Regional Sector Titans

Arab 50 0.52% 16.5% 22.9%

Health Care -0.61 8.6 17.3

Utilities 0.55 7.8 7.0

Technology -0.10 6.0 16.1

Real Estate 0.29 5.3 3.1

Global 50 0.10 0.1 7.5

Food&Bev -0.05 -0.2% 5.8

Tiger 50* -0.11 -1.9 -1.9

PersH'holdGds -0.13 -2.3 2.5

Insurance 0.47 -2.8 5.5

Media -0.51 -3.2 6.9

Banks 0.62 -3.4 -0.5

Fincl Svcs 0.07 -3.7 7.1

Asian 50 0.16 -7.1 -7.5

*Asia excluding Japan

Source: SIX Financial Information

Major players &benchmarksAt right, a look at the Asia Titans, the biggest and best knowncompanies in Asia. Below, some of the Dow Jones Titans indexesof biggest and most liquid stocks in individual countries and regions

Dow Jones Asia Titans: Monday's best and worst...

PreviousVolume close, in STOCK PERFORMANCE

Company Country Industry inmillions local currency Previous session 52-week YTD

Rio Tinto Australia GeneralMining $2.81 58.36 1.92% -5.3% -14.4%

AIAGroup Hong Kong Life Insurance 26.64 41.90 1.70 10.4 7.7

ChinaMobile Hong Kong Mobile Telecommunications 19.30 93.60 1.35 10.1 16.6

SunHungKai Properties Hong Kong Real Estate Holding Development 3.81 113.00 1.25 8.8 14.9

BHPBilliton Australia GeneralMining 7.73 32.60 0.90 -7.0 -14.2

Taiwan SemiconductorManufacturingTaiwan Semiconductors $77.99 120.50 -3.60% 14.8 14.2

Wesfarmers Australia Home Improvement Retailers 3.02 40.00 -2.03 -5.0 -9.2

HonHai Precision Industry Taiwan Electrical Components Equipment 35.80 95.80 -1.84 45.0 34.0

PetroChina Hong Kong Integrated Oil Gas 96.64 9.57 -1.14 7.4 12.7

Tencent Holdings Hong Kong Internet 16.02 114.40 -1.12 36.5 15.8

...And the rest of Asia's blue chipsLatest,

Volume in local STOCK PERFORMANCECompany/Country (Industry) inmillions currency Latest 52-week YTD

Reliance Industries GDR 0.30 31.45 0.80% 10.2% 8.3%United Kingdom (Exploration Production)POSCO 0.25 306,000 0.66 -1.8 -6.3Korea (Iron Steel)Bank of China 273.61 3.49 0.58 -3.6 -2.2Hong Kong (Banks)HyundaiMotor 0.67 178,500 0.28 -31.9 -24.5Korea (Automobiles)Samsung Electronics 0.23 1,108,000 0.27 -22.9 -19.2Korea (Semiconductors)China Construction Bank 160.53 5.50 0.18 -8.9 -6.0Hong Kong (Banks)Woodside Petroleum 2.00 38.72 0.05 1.8 -0.5Australia (Exploration Production)Canon 7.25 3,379 Closed 8.5 1.5Japan (Electronic Office Equipment)China Life Insurance 12.76 21.55 Closed 4.4 -11.1Hong Kong (Life Insurance)CNOOC 57.58 12.92 Closed -18.3 -10.4Hong Kong (Exploration Production)East Japan Railway 1.63 8,075 Closed -5.3 -3.6Japan (Travel Tourism)Fanuc 2.29 18,175 Closed 8.6 -5.6Japan (Industrial Machinery)Hitachi 23.82 781.20 Closed 25.4 -1.9Japan (Electronic Equipment)HondaMotor 6.20 3,473 Closed -11.3 -19.8Japan (Automobiles)Itochu 13.24 1,224 Closed 2.4 -5.8Japan (Industrial Suppliers)Japan Tobacco 4.40 3,494 Closed -0.2 2.1Japan (Tobacco)KDDI 4.84 6,456 Closed 23.0 -0.2Japan (Mobile Telecommunications)Komatsu 7.10 2,369 Closed 0.2 10.9Japan (Commercial Vehicles Trucks)Mitsubishi 8.59 2,069 Closed 3.1 2.6Japan (Industrial Suppliers)Mitsubishi UFJ Financial Group 62.87 589.40 Closed -7.3 -15.1Japan (Banks)

Latest,Volume in local STOCK PERFORMANCE

Company/Country (Industry) inmillions currency Latest 52-week YTD

Mitsui Co. 13.34 1,598 Closed 12.3% 9.0%Japan (Industrial Suppliers)Mizuho Financial Group 195.77 189.30 Closed -8.6 -17.0Japan (Banks)Nippon Steel SumitomoMetal 49.19 260.00 Closed -23.8 -26.1Japan (Iron Steel)Nippon Telegraph Telephone 3.24 6,312 Closed 19.3 11.5Japan (Fixed Line Telecommunications)NissanMotor 20.62 982.70 Closed -2.6 11.2Japan (Automobiles)NomuraHoldings 29.64 615.00 Closed -18.9 -24.0Japan (Investment Services)NTTDoCoMo 7.26 1,719 Closed 9.4 -0.4Japan (Mobile Telecommunications)Seven I Holdings 3.94 4,058 Closed 9.8 -2.9Japan (Broadline Retailers)Shin-Etsu Chemical 2.11 6,704 Closed 14.0 9.2Japan (Specialty Chemicals)SoftBank 14.71 7,100 Closed -1.8 -22.8Japan (Mobile Telecommunications)SumitomoMitsui Financial Group 11.94 4,120 Closed -15.1 -24.0Japan (Banks)Takeda Pharmaceutical 3.04 4,587 Closed -2.4 -4.9Japan (Pharmaceuticals)TokioMarine Holdings 4.61 3,279 Closed 4.8 -6.7Japan (Property Casualty Insurance)ToyotaMotor 10.64 6,220 Closed -3.0 -3.1Japan (Automobiles)Woolworths 2.57 33.68 -0.15% -0.0 -0.5Australia (Food Retailers Wholesalers)Industrial Commercial Bank of China 273.94 4.88 -0.20 -11.4 -6.9Hong Kong (Banks)National Australia Bank 5.73 31.82 -0.31 -8.5 -8.6Australia (Banks)Australia NewZeald Bkg 5.19 31.01 -0.67 -0.4 -3.8Australia (Banks)Commonwealth BkAustralia 2.98 74.13 -0.90 2.2 -4.7Australia (Banks)Westpac Banking 4.90 31.90 -1.09 -3.2 -1.5Australia (Banks)

Sources: SIX Financial Information;WSJMarket Data Group

Credit derivativesSpreads on credit derivatives are oneway themarket ratescreditworthiness. Regions that are treading in roughwaterscan see spreads swing toward themaximumand vice versa.Indexes beloware for five-year swaps.

Markit iTraxx Indexes SPREADRANGE, in pct. pts.Mid-spread, sincemost recent roll

Index: series/version in pct. pts. Mid-price Coupon Maximum Minimum Average

Europe: 22/1 0.70 101.54% 0.01% 0.70 0.65 0.67

Eur. HighVolatility: 20/1 0.72 101.17 0.01 0.95 0.66 0.75

EuropeCrossover: 22/1 3.67 105.94 0.05 3.67 3.32 3.50

Asia ex-Japan IG: 22/1 1.17 99.16 0.01 1.17 1.14 1.16

Japan: 22/1 0.71 101.48 0.01 0.71 0.68 0.69

Note: Data as ofOctober 10

SpreadsSpreads onfive-year swapsfor corporatedebt; based onMarkit iTraxxindexes.

In percentage points

3.00

2.00

1.00

0

1

t

Asia ex-Japan IG

tAustralia

2014May June July Aug. Sept. Oct.

Index roll

Source: Markit Group

NOTICE TO READERSAll statistics published inThe Wall Street JournalAsia from markets outsidethe Asian-Pacific regionreflect preliminary data.

Trackingcreditmarkets &dealmakers

Credit-default swaps: Asian companiesAt itsmostbasic, thepricingofcredit-defaultswapsmeasureshowmuchabuyerhastopaytopurchase-andhowmuch a seller demands to sell-protection from default on an issuer's debt. The snapshot below gives asensewhichway themarketwasmoving yesterday.

Showing the biggest improvement...CHANGE, in basis points

Yesterday Yesterday Five-day 28-day

SompoJapan Ins 26 1 ... 1

KTG 56 2 1 10

SapporoHldgs 47 1 ... 1

NipponTelegraph Tel 19 ... 1 ...

Toray Inds 30 ... ... 2

KDDI 19 ... ... 1

ORIX 64 ... 1 9

WanHai Lines 168 1 4 4

Ptt 78 1 7 3

NissanMtr 37 ... ... 7

And the most deteriorationCHANGE, in basis points

Yesterday Yesterday Five-day 28-day

NipponYusenKabushikiKaisha 62 5 ... 18

SHARP 214 17 15 25

SamsungElectrs 43 3 1 7

Kawasaki KisenKaisha 129 8 2 16

MitsuiOSKLines 137 9 3 32

GLOBALFOUNDRIESSINGAPORE 265 13 11 5

LgElectrs 84 4 2 8

CASIOCOMPUTER 43 2 ... 3

GSCaltexOil 77 3 1 10

MTRCorp 41 2 1 4

Source:Markit Group

BLUE CHIPS & BONDS

WSJ.com>>Follow the markets throughout the day, with updatedstock quotes, news and commentary at WSJ.com/Email.

Also, receive emails that summarize the days trading inEurope and Asia. To sign up, go to WSJ.com.

Behind global deals: Bank revenues from equity capital marketsBehind every IPO,follow-on orconvertible equityoffering is one ormore investmentbanks. At right,investment bankshistorical andyear-to-daterevenues from globalequity-capital-market(ECM) deals

Source: Dealogic

75%15

5010

255

002005 2006 2007 2008 2009 2010 2011 2012 2013 2014

n Equity capital markets n Debt capital markets (both in billions, left axis)

ECM as a percentage of total(right axis)t


WORLD NEWS: ASIA

Afghans Sound Alarm on Islamic StateKABULAfghan security officials

say that Islamic State is beginningto seek a foothold here in an appar-ent effort to extend its reach at atime when foreign combat troopsare leaving.

Islamic States operations havebeen limited so far to parts of Iraqand Syria, though its recruitment ef-forts, including slick online videosand social media, have spread farand wide.

Afghan officials say the extrem-ist group now is testing the watershere, pointing to leaflets in the localDari and Pashto languages embla-zoned with the Islamic State logothat appeared in small numbers lastmonth in Kabul and the eastern cityof Jalalabad.

In addition, local officials havesounded the alarm over what theysee as signs of an Islamic Statepresence or influence on Afghansoil.

A security official in the centralprovince of Ghazni who fought in-surgents a week ago said he hadseen an Islamic State flag raised inthe village of Mohammad Khil. Thebodies of two militants recovered atthe scene were dressed in black uni-forms with face masks like Daesh,the official said, referring to IslamicState by its Arabic acronym.

U.S. and coalition officials havebeen skeptical. Afghan officials, theysay, routinely play up threats in theprovinces to ensure that interna-tional resources and funding keepflowing to the army and police.

There are definitely al Qaedaand al Qaeda affiliates in Afghani-stan, theres no question aboutthat, James Cunningham, the U.S.ambassador to Afghanistan, said

earlier this month.But as for an Islamic State label

or presence, he said, as far as Iknow, those are rumors. I haventseen any firm reports or evidence ofthat.

Islamic State has been focusedon establishing a caliphate in theMiddle East, which doesnt includeAfghanistan, and isnt known to beengaged in fighting outside Iraq andSyria.

The pamphlets, seen by The WallStreet Journal, call for Afghans tojoin Islamic State as a broader frontagainst the U.S. and its allies, in-cluding the Afghan government.

We are witnessing the final cru-sades between the Islamic worldand the world of infidels, which in-cludes the U.S., its allied forces andits apostate governments, a leaflet

states, referring to Muslim-majoritycountries aligned with Washington.

Islamic State isnt in Afghani-stan yet, but they are trying to es-tablish links with terrorist groups inAfghanistan, said Lt. Gen. MuradAli Murad, commander of groundforces for the Afghan army.

The Afghan government alreadyfaces a robust threat from the Tali-ban, who recognize Mullah Moham-mad Omar as their spiritual leaderrather than Abu Bakr al-Baghdadi,the head of Islamic State.

The Taliban havent positionedthemselves as a global movement,though they did provide a haven toal Qaeda before the Sept. 11, 2001,attacks on the U.S.

A senior Afghan security officialsaid he believed the Islamic Statepamphlets were authentic, and had

been translated from Arabic andprinted in the northwestern Paki-stani city of Peshawar.

Their distribution was part ofthe groups efforts to introduce it-self in Afghanistan and then launchhere, the official said. They aretrying to recruit people and to es-tablish contacts with Taliban com-manders. They are trying to buytheir loyalty by offering funding.

The Taliban couldnt be reachedto comment.

One Western official said itwasnt clear who wrote the pam-phlets. They could have been writ-ten by an Islamic State sympathizeror someone picking up news fromelsewhere, the official said, ratherthan the group itself.

Some 3,000 Afgh

ws ja 20141014

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