05/01/2016 Asia Business Report

of failing to address concerns about safe working and unsocial hours.

Now on BBC News, all the latest business news, live from Singapore.

A market freefall. After Monday's fall in China they are open and

next. Another choppy day. And imagine a machine that could give

you moisturise as at the we will show you how. -- moisturiser. Hello.

Glad you could join us. I am Rico Hizon. All eyes are now on the Asian

financial markets. We start off with South Korea. Officials are ready to

take action if needed to stabilise the market. Just one of the bourses

in the region in positive territory this morning after the sharpest

daily fall since August last year. The market turmoil comes after

trading on China's mainland index, the Shanghai index, plunged

dramatically on Monday. It has opened just now for trading. We will

have the numbers soon. But trading in Shenzhen and Shanghai down 7% on

Monday. That triggered a new circuit breaker mechanism causing trade to

be suspended for the rest of the day. So, should we expect more

volatility? Earlier, we had this view. I think we should definitely

expect volatility to continue. Don't forget, the last trading day last

year was pretty weak in the US. You could also take the perspective we

are following that lead into the sea. 2015, the same themes? -- this

year. Weak Chinese economic data. Yeah, and also, or example, what was

you, which happened yesterday was the circuit breaker being treated

for the first time. -- new. Observers might think this is

positive. -- triggered. Almost everything the officials are

implementing since last summer is creating confusion. They are

dominated by domestic investors and retail investors. They like to

panic. Will this continue to fall in the Chinese economy... Are you

expecting behind landing in 2016 for them? We are expecting... You have a

positive long-term view on the Chinese economy. When you see the

services PMI versus the manufacturing PMI, it is taking over

from manufacturing, growth in China. But that is a long-term story.

Basically, investors have to be patient with this transition to a

service economies investors always have to be patient, is actually in

China. -- economy. Asia as a whole, which particular sectors, industries

and countries do you like the moment for 2016? Within Asia, we have a

positive view on north versus south. Japan, we like the reform

story, slowly progressing. Were also, as mentioned, have a long-term

positive view on China. -- We. We think the first half will be

tougher. This is how Australia will be faring in the mid-morning trade.

Down by 107 point. -- points. Sydney giving back 58 point. The Hong Seng

index in Hong Kong, opening numbers very shortly. Let's look at the US

markets. Overnight, the Dow lost 1.6%. And the NASDAQ is in negative

territory. 2.1% at the close. Moving to other business news. South

Korea's account surplus fell to 6.75 billion dollars in September. That

makes it the smallest since May of last year. Exports in November

dropping six and a half per cent to under $43 billion. New data from

Indonesia shows that the cost of living is at it's lowest level in

six years. That has raised expectations that the central bank

could cut the cost of borrowing for the first time in nearly a year. --

it. They have been held at seven point 5% since 2015. You would think

that Chinese economies may be putting off the race Dashon plans.

But not so for Chinese airlines. -- their expansion plans. They are

going global. Nearly a dozen carriers are going to launch

international programmes this year. That is to cope with mainland

tourists going overseas. We explain why this is important. It is

significant. We are seeing a lot of international expansion. For the

first time, many carriers are taking on big routes and sometimes we are

seeing more than one Chinese carrier on a Sydney pair. America and

Australia. That increases the competition among Chinese carriers.

Most of them are owned by the government. Correct. Therefore, they

are stopped from competing against each other usually. But it looks

like the government is opening bat up a bit but the bad is good because

it will lead to more competition. -- that up. It is not just major

carriers. We are seeing second and heard year carriers joining. --

third. We are seeing new city is opening up, smaller cities, though

quite big I Western standards. -- by. This is because China is living

more new airports because there are more and additional emerging

carriers coming up the ladder. Absolutely. We are seeing the

emergence of low-cost carriers in China. They could be a big thing.

They will drive expansion domestically and in two places like

Southeast Asia. Is this aggressive and is along the large and smaller

carriers? -- into. Many countries right now are more affordable

because of the declining currencies and the rising Chinese

middle-class. Absolutely. We have certainly seen that in the

Australian market. Many Chinese carriers are flying to Australia and

New Zealand and the like. But many of these outlines, flying overseas,

it means is a national currency hedge for them, especially where it

is falling slightly. But, what could be the downside for these

expansions, when the Chinese economy is slowing down. So far, we haven't

seen much impact from the slowdown in the Chinese economy. Many are

still travelling in China and outside of it as well. There hasn't

been much of an impact for airlines. Though, longer term, if it

deepens, it could be a problem. But at the moment it seems it hasn't

stopped Tony's travellers. -- Chinese. Chinese manufacturing data

showed activity falling in December, raising rush concerns about the

demands for the largest consumer of metal. Prices have gained ground in

recent months from six-year lows. But they were short lived. Test are

being carried out. -- tests. A la minion -- Aluminium ore has turned

the sea on the cost a red -brown colour. The concern is growing about

the impact on the environment. -- coast. Chances are that you have

applied some sort of rather than your face this morning, I have.

Billions are spent on cosmetics every year. But imagine if you could

customise your own moisturiser. And machine that can do just that will

be shown this week. -- A. That is in Las Vegas but the we met the

president of the company. -- Las Vegas. COUNTRY MUSIC.

What would you recommend for me if I was to try it was yellow because we

are in Paris, it is very cold. -- it. This is for people with cold

skin. It mixes with the sea and squirts out... Now you can wear this

outside. Ten years younger. Part of the fun of expensive beauty products

is you go to the shop, try them out, get pampered... You are asking them

to do it at home. Doesn't that take out the fun? no. We will have our

own shops. You will have the same experience wherever you are.

Wherever you live. This doesn't care... We are taking care of it is

now. This machine can mix different ones. -- of this. Some for sport,

some for going out... Can I have these in my cupboard? It depends on

your way of life, of course. All this week we will bringing you the

very latest gadgets and