Asia's business news

Cathay Pacific announced a 39% drop in profits

By BBC business reporter Bridget Fallon in Singapore

Results from the world's sixth biggest bank started the business week in Asia. HSBC seems so far to have avoided the global economic slowdown. It saw its profits rise 4% to $ 3.67bn. The bank attributed the rise to its conservative risk appetite and shrewd investments.

Also on Monday a five-day strike at Sri Lanka's main port ended. The industrial action caused massive losses to ship owners, who are already reeling from high insurance charges due to the risk of attacks.

Workers at the Jaya Container Terminal of the Colombo Harbour called off the action after a new shift system was abandoned.

The Philippines biggest food and drinks group is getting bigger. San Miquel said it was to buy Cosmos Bottling in a $282m deal. San Miquel now has 90% of the soft drinks market.

China floats Sinopec

There seemed little investor appetite for shares in China's biggest initial public offering. China Petroleum & Chemical (Sinopec) made an unspectacular debut on the Shanghai market, with shares rising just 3% above their offer price. Sinopec's $1.43bn flotation took place on the A shares market which means trading is restricted to domestic investors.

In Pakistan, the government announced a $1bn infrastructure project. It includes the construction of dams, roads and a new port to be built with Chinese assistance, in Gwadar.

The current economic slowdown continues to take its toll on Taiwan. The country, which relies heavily on selling its high tech products, suffered its most dismal trade performance on record with exports falling 28% last month compared with the same time last year.

This exports decline is the steepest for at least 25 years.

Cathay Pacific's profits dive

In other corporate news this week, Cathay Pacific suffered a worse than expected 39% drop in profits.

Weaker cargo business and falling passenger numbers were blamed. The airline warned that its profits in the next six months would be hit by industrial action by its pilots.

In Australia, there was a record fall in full-time employment in July. The drop of 79,200 was the largest monthly fall since the current series began in February 1978.

So far Australia has shrugged off the worst of the economic slowdown as it is still predominantly an old-style economy and the weak Aussie dollar is helping exports.

Singapore economy shrinks

Indonesia's new chief economics minister, who was named on Thursday, said the recent strengthening of the rupiah was healthy but Dorodjatun Kuntjoro-Jakti warned that an overly quick appreciation could harm the economy.

The currency has already firmed more than 20% against the dollar since President Megawati Sukarnoputri took power late last month.

The economic slowdown continues to hit the export-driven economy of Singapore. Official second-quarter figures for gross domestic product showed a fall of 0.9% year-on-year.

The manufacturing sector was the worst hit - falling 9.6%, its worst performance in 16 years

We ended the week in Tokyo with Prime Minister Junichiro Koizumi's cabinet approving budget guidelines for the next fiscal year.

The package includes the first reduction in general spending in four years. This sets in motion the government's pledge to turn around the economy with vital but painful reforms.