24_04_2015

VOL. XXXIX NO. 164

FRIDAY - SUNDAY, APRIL 24 - 26, 2015

The Swiss Watch vs. AppleOFF DUTY

The Swiss Watch vs. AppleOFF DUTY

As of 12 p.m. ET DJIA 18085.27 0.26% FTSE 100 7053.67 0.36% Nikkei 225 20187.65 0.27% Shanghai Comp. 4414.51 0.36% Hang Seng 27827.70 g 0.38% S&P Sensex 27735.02 g 0.56% S&P/ASX 200 5844.80 0.13%

(India facsimile Vol. 6 No. 223)ASIA EDITION

WSJ.com

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.124/10/2014SK.M

ENPENR.I.NO:01/SK/M

ENPEN/SCJJ/1998TGL.4

SEPT1998

A Silicon Valley VeteranGuides SoftBanks Deals

TOKYONikesh Arora wasvacationing in his native Indialast summer, just before start-ing a job at SoftBank Corp. ofJapan, when his new bosscalled. Masayoshi Son, Soft-Banks chief executive, toldMr. Arora that he wanted toinvest in India.

We looked at 50 differentcompanies and we decided toinvest in three in the span oftwo weeks, recalled Mr.Arora, a former top GoogleInc. executive, in an interviewThursday.

The seat-of-the-pants styleis characteristic of Mr. Son,who parlayed a $20 millioninvestment in the Chinese on-

line retailer Alibaba GroupHolding Ltd. 15 years ago intoa stake valued at tens of bil-lions of dollars and earned areputation as one of theworlds shrewdest Internettreasure hunters. More re-cently, in 2013, he spent $21.6billion on Sprint Corp., theU.S. wireless carrier.

Mr. Son is still eager tomake bold bets, but Mr.Aroras arrival has broughtsome changes in investingstyle. Since joining SoftBankin October as head of its in-vestment arm in San Carlos,Calif., Mr. Arora has brought afull-time and broader-rangingeye to SoftBanks investments,as well as a Silicon Valleypedigree. At Google, he over-saw the companys biggest

moneymaker, the sale of ad-vertising linked to its searchengine.

Currently, SoftBank is ahybrid: It owns large mobile-phone service providers in Ja-pan and the U.S., with billionsof dollars tied up in networksand equipment, while puttingfar smaller sums in fledglingInternet and technology com-panies.

SoftBanks struggle to turnaround Sprint, which has beenlosing subscribers, and itsmounting debt load mighthave damped Mr. Sons enthu-siasm for blockbuster acquisi-tions of established compa-nies. Mr. Arora has a clearmandate to find the next Ali-baba, not the next Sprint.

Please turn to page 20

China WarnsNorth KoreanThreat Rising

Chinas top nuclear expertshave increased their estimatesof North Koreas nuclear weap-ons production well beyondmost previous U.S. figures,suggesting Pyongyang canmake enough warheads tothreaten regional security forthe U.S. and its allies.

The latest Chinese esti-mates, relayed in a closed-door meeting with U.S. nu-clear specialists, showed thatNorth Korea may already have20 warheads, as well as thecapability of producingenough weapons-grade ura-nium to double its arsenal bynext year, according to peoplebriefed on the matter.

A well-stocked nuclear ar-mory in North Korea rampsup security fears in Japan andSouth Korea, neighboring U.S.allies that could seek theirown nuclear weapons in de-

fense. Washington has mutualdefense treaties with Seouland Tokyo, which mean an at-tack on South Korea or Japanis regarded as an attack onthe U.S.

Im concerned that by 20,they actually have a nucleararsenal, said Siegfried Hecker,a Stanford University profes-sor and former head of the LosAlamos National Laboratory,who attended the closed-doormeeting in February. Themore they believe they have afully functional nuclear arsenaland deterrent, the more diffi-cult its going to be to walkthem back from that.

Chinese experts now be-lieve North Korea has a greaterdomestic capacity to enrichuranium than previouslythought, Mr. Hecker said.

The Chinese estimates re-flect concern in Beijing overNorth Koreas weapons pro-gram and what they see asU.S. inaction while PresidentBarack Obama focuses on anuclear deal with Iran.


By Jeremy Pagein Beijing

And Jay Solomonin Washington

U.S. Drone Strike Killed HostagesPakistan deathsspur call for probeof CIAs actions

A U.S. drone strike in Jan-uary targeting a suspected alQaeda compound in Pakistaninadvertently killed an Ameri-can and Italian being heldhostage by the group, the firstknown instance in which theCentral Intelligence Agencykilled hostages in a drone at-tack.

The deaths of Americandevelopment expert WarrenWeinstein and Italian aidworker Giovanni Lo Porto rep-resent a major blow to theCentral Intelligence Agencyand its covert drone programin Pakistan, which PresidentBarack Obama embraced andexpanded after taking office in2009.

Mr. Obama, speaking at theWhite House Thursday morn-ing, said he takes full respon-sibility for the January dronestrike that killed the two hos-tages. The president said hespoke with Italian Prime Min-ister Matteo Renzi and thefamilies of the victims.

As president and as com-mander in chief I take full re-sponsibility for all our coun-terterrorism operations, Mr.

Obama said. I profoundly re-gret what happened. On be-half of the United States gov-ernment I offer our deepest

apologies to their families.The incident also under-

scores the limits of U.S. intel-ligence and the risk of unin-

tended consequences inexecuting a targeted killingprogram that human-rights


BY ADAM ENTOUS

BY ERIC PFANNERAND ALEXANDERMARTIN

Concern is growingover a surge in bets bymom-and-pop investorsusing borrowed cash topile into Chinas stockmarket.Business..................17

An Alibaba executive isforming a family officeto invest the wealthcreated by the firms$25 billion IPO.Business..................17

Inside U.S. Cable Deal FacesToughRegulatoryTest

The staff of the U.S. Fed-eral Communications Commis-sion threw up a significantroadblock Wednesday to Com-cast Corp.s proposed acquisi-tion of Time Warner Cable

Inc., recommending a proce-dural move that could poten-tially sink one of the media in-dustrys biggest mergers inyears.

The FCC staff reached aconclusion that the best op-tion for the FCC is to issue ahearing designation order,according to people familiarwith the matter. In effect, thatwould put the $45.2 billionmerger in the hands of an ad-

ministrative law judge, andwould be seen as a strong signthe FCC doesnt believe thedeal is in the public interest.

Comcast and Time WarnerCable may still have an oppor-tunity to weigh in on the mat-ter before the proceedingmoves forward, people famil-iar with the situation said.Those people cautioned thatthe situation remains fluidand no final decision has beenmade.

A hearing could be adrawn-out process, and someregulatory experts describethe procedure as a deal-killer,though Comcast would be en-titled to make its case for thetie-up.

In midday trading Thurs-day, Comcast shares were upabout 2%, while Time Warner


By ShaliniRamachandran, Joe

Flint and BrentKendall

President Barack Obama on Thursday said he took full responsibility for the January drone strike.

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Eurozone Economy Is on TrackKeep calm and carry on. Three

eurozone surveys have provided dis-appointing headlines this week:Markits flash purchasing-managersindexes, the ZEW German economicexpectations number and the Euro-pean Commissions consumer-confi-dence indicator. A closer look sug-gests investors shouldnt be tooworried.

The flash eurozone PMI fell to53.5 in April from 54.0 in March,Markit said Thursday. Economistshad been looking for a continuedrise, and this reading might re-awaken bad memories from lastyear, when the PMI peaked at aboutthe same time and growth remainedsluggish. But the details suggestthat this might just be a small stepback for the index after rising con-sistently since November.

While surveys for France andGermany proved disappointing, therest of the eurozonefor which nobreakdown is yet availablere-corded its best performance since

August 2007, Markit noted. Overall,the index remains above its first-quarter average. Growth in new or-ders across the eurozone moderatedslightly, but this was from a four-year high, and didnt deter employ-ers from hiring at the fastest pacesince August 2011. The German in-dex stands at 54.2, a decent enoughreading, with continued strengthcoming from domestic demandthekey factor for this year. France re-mains a laggard, but the relation-ship between the French PMI andeconomic growth has been weak. Itis, however, a reminder thatFrances government has much to doto address its economic woes.

As for the ZEW survey of finan-cial-markets analysts, while expecta-tions for Germany moderatedslightly, they remained well abovetheir long-term average. Meanwhile,the current-conditions index forGermany shot higher, with 71% ofrespondents labeling it good from56% in March, and the indicator forexpectations for the eurozone con-tinued to improve.

Finally, consumer confidence hadbeen surging in recent months; itdipped slightly in April but still re-mains at levels seen in 2007. If theMarkit survey is correct on hiringand employment intentions, thenconsumers should remain buoyant.

So what gives? The continuedfailure by Greece to strike a dealwith its eurozone partners may becasting a cloud. Growth elsewherein the world has been lackluster,with the U.S. economy in particularproving disappointing. In that con-text, the eurozone is faring well.The Continent has promised growthonly to disappoint before. But, thistime around, there isnt yet realcause for concern.

Richard Barley

Short-Term ReliefThe yield on Fortescue's 2017 bonds fellon news the iron-ore miner successfullylaunched new, longer-dated bonds.

THEWALL STREET JOURNAL.Source: Thomson Reuters

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

Facebook Pays High PriceFor SuccessWith Spending

Facebook continues to dominatethe moment. The question is whatthe future will bring. The social net-work on Wednesday reported first-quarter earnings that beat expecta-tions. Revenue growth of 42% fellshort of the consensus estimate, butexceeded it after backing out cur-rency effects. Monthly active usersrose 13% year over year, bringingthe total to 1.44 billion.

Facebooks growth remains im-pressive. But it also is ramping upspending in a big way. It expects op-erating expenses to rise 55% to 65%this year.

One major area of spending isstock-based compensation, whichmore than doubled from a year ear-lier to $703 million in the quarter.While the rise is due largely to ac-quisitions, it is particularly notablebecause Facebook and Wall Streettend to focus on adjusted net in-come, which excludes that expense.

As a result, Facebooks earningson the basis of generally acceptedaccounting principles, which includestock compensation, were only 43%of its adjusted net income. Thatcompares with 69% a year earlier.

The bulk of that spending wenttoward research and development,

where the company is working tobolster its services such as Insta-gram and Messenger. It also is in-vesting in longer-term projectsabout which details are scant. For arapidly growing technology firm likeFacebook, some level of spending onmoonshots is necessary. But asthat amount balloons, investorsmust hope that the extra spendingwill eventually pay off with growth.

For that they are paying a highprice. Facebooks stock is trading atabout 46 times trailing earnings.But the multiple soars to about 82times when stock-compensation ex-pense is included. If that spendingdoesnt eventually lead to big reve-nue gains, investors will be the oneswho pay the price for it.

Miriam Gottfried

One major area ofspending is stock-basedcompensation, whichmore than doubled from ayear earlier.

A German supermarket

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2015 Dow Jones & Company, Inc. All rights reserved. 3DJ3463

armanis new normal withthe wall street journalnext friday.

2 | Friday - Sunday, April 24 - 26, 2015 HK JP ID MU KO ML PH SI TL TW IN THEWALL STREET JOURNAL.

ONLINE TODAY

i i iBusiness & Finance

n The Nasdaq breached its re-cord closing high for the first timein 15 years, the latest push higherfor the tech-heavy index that haspulled ahead of the broader mar-ket this year. 23

n Chinese smartphone maker Xi-aomi is seeking to replicate its do-mestic success by launching itsfirst phone aimed at overseas con-sumers in India. 20

n Brazils state oil firm PetrleoBrasileiro put a price on a corrup-tion scandal that has thrown thecountry into turmoil, writing off$17 billion due to losses fromgraft and overvalued assets. 19

n Deutsche Bank paid a record$2.5 billion penalty to settle U.S.and British allegations that it ma-nipulated interest rates, wrappingup a yearslong investigation. 24

n The European Union could cre-ate a powerful new regulator tooversee a swath of mainly U.S.-based Internet companies likeGoogle and Facebook. 19

n Fortescue Metals has beenforced to stomach an eye-wateringinterest rate to refinance part ofthe Australian miners multibil-lion-dollar debt pile amid a down-turn in iron-ore prices. 22, 32

n Facebook reported big gains infirst-quarter revenue, but heavyspending on people, data centers

and long-term initiatives led to adecline in profit. 20, 32

n U.K.-based trader NavinderSingh Sarao, who is fighting extra-dition to the U.S., was granted bailby a London court. 27

n The eurozones economyslowed slightly in April, but con-tinued to grow at a faster pacethan in recent years, surveys ofpurchasing managers showed.

i i iWorld-Wide

n Leaders of Asian and Africancountries pledged to build stron-ger ties to gain leverage in settingthe rules of global trade and di-plomacy, wrapping up a summit

that highlighted Chinas role as aglobal financier. 6

n Chinese authorities appearedto broaden the potential allega-tions of corruption against formersecurity czar Zhou Yongkang, as aformer regional politician admit-ted to criminal collusion with him.

n The head of the Philippine cus-toms bureau resigned over whathe called mounting political pres-sure undermining his efforts tofight corruption at the agency.

n European nations are weighinga plan to triple funding for patrolsin the Mediterranean, supportedby ships from national fleets, tostem deaths of migrants trying toreach Europes shores from Africa.

A visitor takes photos Thursday at the Lone Pine Australian memorial in Gallipoli, where the first battle of the Gallipoli campaign was fought. Saturday marks the100th anniversary of a World War I landing in Turkey that began the campaign in which thousands of Australian and New Zealand Army Corps troops died. Page 4

Inside

Asia News: Woundsfrom Rana factorycollapse linger. 6

In Depth: Safety inspotlight at Cirque duSoleil. 14-15

The Peoples Money:Landlords vs. brands inHong Kong. 22

Videolive.wsj.com

Microfinance: Howhard is banking inrural India? A 75-year-old travels formiles every monthto receive herwidows pension.

China Real Timewsj.com/chinarealtime

SAIC Motor hiresSherlock actorBenedictCumberbatch tohelp boost itsflagging sales.

Photos of the Day

Images behind the storiesmaking news world-widewsj.com/photosoftheday

India Real Timewsj.com/indiarealtime

India moves tolower the age atwhich a personaccused of aserious crime canbe tried as an adultto 16 years old.

PAGE TWO

Whats News

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THEWALL STREET JOURNAL. Friday - Sunday, April 24 - 26, 2015 | 31

Asian stocks in the news

TataSteel Ltd.India 368.70 rupee

s 5.0% or 17.55 rupee

The company's shares got a boost asprices for iron ore rebounded.

2014M J J A S O N D

2015J F M A

150

300

450

600

750In rupee

Price-to-earnings ratio 14Earnings per share, past four quarters N.A.Dividend yield 2.7

PERCENTAGE CHANGEDaily 1 wk. 52wks

BasicMaterials -0.4% 0.2% -2.0%Tata Steel Ltd. 5.0% 9.3% -14.4%

KT&GCorp.Korea 98,700won

s 6.2% or 5,800won

The shares advanced after the firmreported a jump in first-quarter netprofit.

2014M J J A S O N D

2015J F M A

35000

70000

105000

140000

175000In won



Consumer Goods -0.3% 0.2% 15.7%KT&G Corp. 6.2% 6.2% 17.5%

NidecCorp.Japan 8,869

s 6.4% or 534

The precisionmotormaker gained afterposting a rise in operating profit for thefiscal year.

2014M J J A S O N D

2015J F M A

2500

5000

7500

10000

12500In yen



Industrials -0.4% -0.4% 11.9%Nidec Corp. 6.4% 7.3% 48.6%

FubonFinancialHoldingTaiwan TW$61.70

s 6.9% or TW$4.00

Financial shareswere higher on thepossibility of a Shanghai-Taiwan stock-trading link.

2014M J J A S O N D

2015J F M A

20

40

60

80

100In Taiwan dollars



Financials -0.1% -0.1% 15.7%Fubon Financial Holding 6.9% 8.3% 51.4%

FortescueMetalsGroupLtd.Australia A$2.09

s 9.7% or A$0.18

Theminer refinanced a chunk of itsmultibillion-dollar debtwith the issue of$2.3 billion in seven

2014M J J A S O N D

2015J F M A

1

2

3

4

5In Australian dollars



BasicMaterials -0.4% 0.2% -2.0%FortescueMetals Group Ltd. 9.7% 6.9% -60.2%

SandsChinaLtd.Hong Kong HK$31.80

t 2.5% or HK$0.80

The casino operator reported a drop innet profit for the first quarter.

2014M J J A S O N D

2015J F M A

14

28

42

56

70In Hong Kong dollars



Consumer Services ... -0.2% 3.8%Sands China Ltd. -2.5% -6.5% -49.2%

NewcrestMiningLtd.Australia A$14.10

t 3.4% or A$0.50

The goldminer fell, despite posting a risein quarterly output and lower operatingcosts.

2014M J J A S O N D

2015J F M A

4

8

12

16

20In Australian dollars

Price-to-earnings ratio N.A.Earnings per share, past four quarters N.A.Dividend yield 1.7


BasicMaterials -0.4% 0.2% -2.0%NewcrestMining Ltd. -3.4% -2.6% 39.3%

KrungThaiBankPCLThailand 20.60 baht

t 4.2% or 0.90baht

The bank's shares continued to fall afterreporting disappointing resultsWednesday.

2014M J J A S O N D

2015J F M A

8

16

24

32

40In baht



Financials -0.1% -0.1% 15.7%Krung Thai Bank PCL -4.2% -13.8% 10.8%

YahooJapanCorp.Japan 511

t 4.3% or 23

The shares retreated after risingWednesdaywhenparent Yahoo said ithired advisers to explore sell

2014M J J A S O N D

2015J F M A

180

360

540

720

900In yen



Technology -0.2% -0.4% 11.0%Yahoo Japan Corp. -4.3% -1.9% 3.0%

JSRCorp.Japan 2,050

t 6.6% or 145

The synthetic rubber and resinmaker'sfiscal-year operating profit came inbelow its ownestimate.

2014M J J A S O N D

2015J F M A

750

1500

2250

3000

3750In yen



BasicMaterials -0.4% 0.2% -2.0%JSR Corp. -6.6% -6.7% 16.9%

Moving themarketsAt right, Japans benchmark stock indexand the biggestmovers among thelargerAsian stocks indexes and stocksThursday. 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 indexmovers

Nikkei StockAverageJapan 20187.65

s 0.27% or 53.75

2014M J J A S O N D

2015J F M A

8000

12000

16000

20000

24000

Volume ChangeStock inmillions Close Net %

MizuhoFin 300.41 232 -0.3 0.13

MitsuUFJFin 153.56 862 -18 1.99

NomuraHldgs 87.22 783 22 2.94

ShinseiBank 71.20 258 5 1.98

Sojitz 64.99 233 8 3.56

S&PBSESensexIndia 27735.02

t 0.56% or 155.11

2014M J J A S O N D

2015J F M A

15000

22500

30000

37500

45000


StateBankofIndia 13.87 280.45 3.40 1.20

TataSteel 12.19 365.33 13.98 3.98

SunPharmInds 9.45 950.20 17.60 1.82

ICICIBank 9.41 311.85 1.10 0.35

HindalcoIndustries 6.78 135.05 0.40 0.30

HangSengHongKong 27827.70

t 0.38% or 106.15

2014M J J A S O N D

2015J F M A

12000

18000

24000

30000

36000


ChinaConstructnBk 492.45 7.63 0.06 0.78

Ind&Comml 413.94 6.81 0.17 2.44

BankofChina 398.87 5.39 0.08 1.46

ChinaPetro&Chem 162.15 7.05 0.05 0.71

PetroChina 99.52 10.06 0.08 0.79

ASX200Australia 5844.80

s 0.13% or 7.30

2014M J J A S O N D

2015J F M A

2500

3750

5000

6250

7500


FortescueMetalsGrp 62.11 2.09 0.19 9.71

Arrium 17.53 0.16 0.005 3.23

Telstra 16.14 6.26 0.01 0.16

Alumina 14.58 1.62

QantasAirways 13.18 3.34 -0.02 0.60

Continuing gains in brokerages helpedthe benchmark rise for a third consecu-tive session. Nomura Holdings added2.9% and Daiwa Securities gained 2.5%.

The market fell as a sluggish start toearnings-reporting season raised con-cerns that stock valuations were run-ning ahead of companies performance.

The index flirted with the 28000 levelbefore pulling back. A gauge of thestrength of Chinese manufacturing fellto the lowest level in a year.

Gains in miners on a rally in iron-oreprices were offset by weakness inbanks and higher-yielding shares linkedto doubts interest rates will fall in May.

MARKETS LINEUP

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Workers climb scaffolding at a construction site in Qingdao on Thursday.

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WORLD NEWS: CHINA

Gauge of Chinese Manufacturing Hits 1-Year LowAn initial gauge of Chinas fac-

tory activity showed further weak-ness in April, slumping to a one-year low and defying governmentefforts to support the economy.

The weak reading in the HSBCChina Manufacturing PurchasingManagers Index suggested that theChinese economy started the secondquarter weakly after a poor showingin the first, which saw the worstquarterly gross-domestic-productgrowth in six years.

The preliminary HSBC China PMIcame in at a 49.2, falling short ofthe already weak 49.6 showing inMarch, and remaining in contrac-tionary territory amid sluggish do-mestic demand and flagging ex-ports. A reading below 50 denotescontraction from the previousmonth while one above that levelshows expansion.

Operating conditions in Chinasmanufacturing sector deteriorated

slightly for the second month run-ning in April, HSBC economist QuHongbin said in a statement re-leased along with the data onThursday.

Mr. Qu cited weak demand, add-ing there were stronger deflationarypressures in the manufacturing sec-tor, with both input and outputprices falling at faster rates. Manu-facturers were also shedding jobsfor the 18th month in a row, accord-ing to the survey, suggesting thegovernment faces hurdles in reach-ing its goal of creating 10 millionnew urban jobs this year.

Chinas gross domestic productexpanded at 7% from a year earlierin the first quarter, and some econo-mists say Beijing may not be able toreach its goal of about 7% growthfor the full year. Industrial-outputgrowth slumped in Marchto itslowest level since 2008and ex-ports sank 15% from a year earlier.

China has used an array of mea-sures to boost economic growth. It

has stepped up infrastructurespending, offered tax breaks andspeeded up export duty rebates.

The central bank cut interestrates in late Februarya second

such move since November. On Sun-day, the central bank lowered theamount of deposits that banks needto hold in reserve, effectively allow-ing them to lend more of their de-

posits.Premier Li Keqiang has also

called on banks to lower borrowingcosts for struggling companies andextend more loans to smaller com-panies. On the face of it, the datasuggest the second quarter could beweak, said Prakash Sakpal, econo-mist at ING in Singapore. It willtake some time for the most recentstimulus measures to take effect,he said.

HSBCs economists said, how-ever, that more forceful measuresare needed to support the economysooner rather than later, addingthey expect another interest-ratecut in the coming weeks.

Despite the weakness in theheadline figure, the initial PMI datawerent all bad news. There was abright spot on the export side: Newexport orders improved in April,suggesting that overseas demandcould be picking up.

Liyan Qicontributed to this article.

BYWILLIAM KAZER

Some China Cities BalkOver Transferred Water

DEZHOU, ChinaAfter spendingbillions of dollars on a mammothproject to transfer water fromChinas wet south to the parchednorth, the central government isfacing a problem: Many cities arentusing the water.

A number are balking at the highcost of the transferred water, andthey are struggling with figuringout how much to charge users.Other cities are deterred by the ex-pense of building the pumping sta-tions, processing plants and otherinfrastructure needed to tap theSouth-North Water Transfer Project.

Water from the project beganpooling in a reservoir about anhours drive from Dezhou nearly twoyears ago. But the eastern citydoesnt expect to have the infra-structure to fully use the water untilyears end, an official with thetransfer projects Dezhou office said.

The city has not really lackedwater in recent years, said LiGuang, the official, adding that thecity instead has relied on waterfrom the Yellow River.

Fewer than half of the 253 citiesincluded in the transfer project havebuilt infrastructure to tap the water,estimates Jia Shaofeng, a water spe-cialist with the Chinese Academy ofSciences, a government think tank.

Their reluctance shows thebreadth of the challenges facing oneof Chinas most complex, massivecivil-engineering projects. The proj-ect takes water from the YangtzeRiver and channels it across a half-dozen provinces and more than1,700 culverts, aqueducts and otherman-made structures. The middleand eastern transfer routesforwhich local governments fundedabout 10% of the costtook morethan a decade to build. A third,western leg of the project is still inthe planning phase.

More than 400,000 people wererelocated to make way for the proj-ect, and the cost has more than dou-bled to 308 billion yuan ($50 bil-lion) since it began in 2002. But thetransferred water is so polluted thatalong the projects eastern route,

the construction of some 400 sew-age treatment plants, man-madewetlands and other pollution-con-trol measures were required.

North Chinas water scarcity hasbeen a problem for decades. MaoZedong suggested the idea for theproject 60 years ago. Water quantitysince has declined across the north,an area that traditionally has servedas Chinas wheat breadbasket andsteelmaking heartland.

Instead of using the transferredwater, many cities along the proj-ects eastern route, which was fin-ished in 2013, have continued topump water out of the ground orexploit other water resources al-ready stretched thin.

Parts of Dezhou, in Shandongprovince, are literally sinking, withsome spots having dropped about ameter, according to the government.

At the Demian residential com-pound, a collection of low-slungbuildings painted tan and mauve, lo-cals point to a red fire hydrant sit-ting several centimeters into theearth and cracks along the base ofthe buildings. Ms. Yang, who de-clined to give her first name andwho runs a fabric store, said sheand her husband bought their apart-ment for two million yuan in 2008.

Now the ground is sinking, shesaid. If Id known about the prob-lem, we definitely wouldnt have

bought it. Local residents, she said,drink poor-quality groundwater thatthey boil before drinking.

Mr. Li, the Dezhou official, saidfiguring out how to price the waterfor consumers is also a challenge. Inaddition to the cost of the trans-ferred waterwhich increases ac-cording to the distance traveledthe price for consumers will alsofactor in the money spent to buildsupporting infrastructure, the costsof maintenance and other factors.

The Shandong provincial officesof the South-North Water TransferProject declined to comment. Thenational office said local govern-ments are required to fund andmaintain the projects infrastructurefrom the pipeline to residential use,adding that the local governmentswill eventually use the water.

Even if the cities dont use thewater, they still must pay fees tocover the transfer of water, saidShen Fengsheng, the projects chiefengineer. Those fees will act as aninducement to use the water.

Official Shandong media say thecost of building local infrastructureto use the transferred water is pro-jected at 23.5 billion yuan province-wide. By the end of 2014, less thanone-third of the needed sum hadbeen invested.

Olivia Gengcontributed to this article.

BY TE-PING CHEN

Corruption Case BuildsAgainst Ex-Security Chief

SHANGHAIChinese authoritiesappeared to broaden the potentialallegations of corruption againstformer security czar Zhou Yongkangahead of his trial, as a former re-gional politician admitted criminalcollusion with the fallen official.

Li Chuncheng, a former mayorand party secretary of the city ofChengdu in Sichuan province, andhis wife accepted more than $60million in bribes and violated rules,at least sometimes based on in-structions from Mr. Zhou, accordingto statements released Thursday.

Over a decade through mid-2011,as he served in Chengdu, Mr. Li wasinstructed by Mr. Zhou, the courtsaid, without being specific. At thebeginning of that period, Mr. Zhouheld the Communist Partys top po-sition in Sichuan.

The court also said Mr. Li hadaccepted bribes of property throughhis wife and helped others makemoney illegally in the boomingsouthwestern metropolis. The courtquoted Mr. Li, who turns 59 thismonth, as saying the accusations inthe indictment are all factual.

Television footage from the courton Thursday showed him wearing alight blue jacket and holding a pieceof paper as he said, I sincerely con-fess to the crimes and express re-morse. Mr. Lis wife couldnt bereached and isnt known to havemade any comment about the alle-gations against her.

The partial transcripts releasedby the Xianning Municipal Interme-diate Court in central Hubei prov-ince were Mr. Lis only public re-sponse since he was abruptlyremoved from power in late 2012.

While lacking specifics, the alle-gations may indicate another basisfor charges faced by Mr. Zhou, whois expected to stand trial in thecoming weeks. Mr. Zhou was onceone of the most powerful politiciansin China, and the accusationsagainst him illustrate the scope ofChinas anticorruption campaign, aswell as the internal political ten-sions among Beijings top leaders.

Mr. Zhou isnt reachable to com-ment and hasnt made a publicstatement about charges that he ac-cepted bribes, abused power andleaked national secrets.

Mr. Lis trial follows a separateproceeding this month against a fig-ure with a background in Chinas oilindustry. Testimony in the two casessuggests Chinese investigators be-lieve they have evidence against Mr.Zhou of illegal activity in the coun-trys oil industry and in Sichuan pol-itics.

In the earlier trial, a Chinesecourt linked Mr. Zhou to corruptionat the highest levels of the nationsoil industry, where in the 1990s hewas chairman of giant China Na-tional Petroleum Corp. During thattrial, a successor to Mr. Zhou aschairman of the company, Jiang Ji-emin, admitted to illegally steeringcontract awards while entrustedto do so by Mr. Zhou, the court said.

Limited transparency in Chinaslegal system makes it impossible toknow how the government intendsto conduct a trial of Mr. Zhou, themost senior official accused of crim-inal activity in decades.

Beyond its implications for Mr.Zhou, Mr. Lis case is also a sym-bolic milestone for Chinas anticor-ruption sweep. A one-line notice inDecember 2012 from authoritiesthat Mr. Li was suspected of an un-specified discipline violation ap-peared to start what has become thebroadest such campaign for a gener-ation. Mr. Lis troubles emerged lessthan a month after Xi Jinping be-came general secretary of the Com-munist Party, and were consideredevidence Chinas new leader wouldshake up politics.

Mr. Lis fall was a surprise. WhenMr. Xi took control in November2012, Mr. Li was also promoted asone of 171 alternates to the partysruling Central Committee, reflectinghis own climb to deputy party chiefof Sichuan from his positions inChengdu.

Yang Jie in Beijingcontributed to this article.

BY JAMES T. AREDDY

Water shortages have plagued Chinas north. A dried-out reservoir in Dengfeng.

C HI N

AF O

T OP R

E SS /

GE T

T YI M

AG

E S

Newly releasedtestimony implicatesfallen politician ZhouYongkang in collusionahead of his trial.

30 | Friday - Sunday, April 24 - 26, 2015 * THEWALL STREET JOURNAL.

Dow Jones Industrial Average P/E: 16LAST: 18085.27 s 47.00, or 0.26%YEAR TO DATE: s 262.20, or 1.5%OVER 52WEEKS s 1,583.62, or 9.6%

*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

18500

18000

17500

17000

16500

1600030 6 13 20 27

Feb.6 13 20 27

Mar.2 10 17Apr.

High

CloseLow

50daymoving average

t

Nasdaq Composite Index P/E: 23*LAST: 5046.11 s 10.94, or 0.22%YEAR TO DATE: s 310.06, or 6.5%OVER 52WEEKS s 897.78, or 21.6%

5050

4900

4750

4600

4450

430030 6 13 20 27

Feb.6 13 20 27

Mar.2 10 17Apr.

S&P 500 Index P/E: 21LAST: 2113.50 s 5.54, or 0.26%YEAR TO DATE: s 54.60, or 2.7%OVER 52WEEKS s 234.89, or 12.5%

2200

2100

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170030 6 13 20 27

Feb.6 13 20 27

Mar.2 10 17Apr.

DJIA component stocksVolume, CHANGE

Stock Symbol inmillions Latest Points Percentage

AmExpress AXP 2.2 $78.10 0.34 0.43%Apple AAPL 23.3 129.74 1.12 0.87Boeing BA 2.1 150.51 0.68 0.45Caterpillar CAT 13.9 84.93 0.06 0.07Chevron CVX 3.5 110.39 0.89 0.81CiscoSys CSCO 10.1 28.69 0.07 0.24CocaCola KO 6.7 41.34 0.03 0.07Disney DIS 2.7 109.31 1.37 1.27DuPont DD 1.6 71.21 0.23 0.33ExxonMobil XOM 4.1 88.25 0.79 0.90GenElec GE 17.6 27.01 0.10 0.37GoldmanSachs GS 1.1 200.27 1.95 0.98HomeDpt HD 1.9 114.35 1.36 1.20Intel INTC 10.8 32.32 0.38 1.16IBM IBM 4.4 171.37 6.01 3.63JPMorgChas JPM 5.8 63.10 0.16 0.26JohnsJohns JNJ 3.3 100.67 0.24 0.24McDonalds MCD 3.0 97.27 0.57 0.58Merck MRK 3.7 57.72 0.03 0.04Microsoft MSFT 21.3 43.50 0.52 1.20NikeB NKE 1.1 101.45 1.30 1.30Pfizer PFE 10.0 35.35 0.42 1.22ProctGamb PG 6.9 81.45 0.97 1.183M MMM 3.4 160.72 3.95 2.40TravelersCos TRV 1.5 103.56 1.54 1.51UnitedTech UTX 1.1 117.71 0.75 0.64UtdHlthGp UNH 1.6 118.16 0.35 0.30Verizon VZ 9.4 49.88 0.31 0.64VISAClA V 3.7 67.80 0.21 0.32

WalMart WMT 2.4 79.20 0.77 0.98

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

Stock Symbol in millions Latest Points Percentage

PetrlBraADS PBR 85.3 $9.32 0.39 4.37%FacebookClA FB 51.2 84.12 0.51 0.60AT&T T 50.3 34.35 1.49 4.53VelocityShares3x UWTI 46.1 3.42 0.27 8.57SPDRS&P500 SPY 42.6 211.68 1.05 0.50PtrlBrasADSA PBR/A 36.3 8.57 0.14 1.61Vale ads VALE 32.0 6.95 0.45 6.92VelocityShares3xLg UGAZ 30.6 1.94 0.17 8.06GeneralMotors GM 26.5 35.79 1.37 3.70BankAm BAC 25.6 15.79 0.04 0.29WeatherfordIntl WFT 25.1 14.29 0.92 6.84Ericsson ERIC 24.9 11.76 0.94 7.44Alcoa AA 24.4 13.18 0.40 2.91Apple AAPL 23.3 129.74 1.12 0.87ComcastA CMCSA 22.8 60.10 1.34 2.27

Biggest gainers...ArrisGp ARRS 14,947.7 $36.98 6.44 21.09%AdeptusHealth ADPT 358.9 62.69 10.54 20.21MedidataSoltn MDSO 1,512.4 56.54 8.88 18.63SCYNEXIS SCYX 809.8 9.01 1.31 17.01Viggle VGGL 6,217.4 3.17 0.41 14.62

...Biggest losersVoltari VLTC 6,401.0 $11.65 3.49 23.05%MobileIron MOBL 4,724.3 7.41 2.09 22.00NiskaGasStrg NKA 412.6 1.98 0.27 12.00MarineMax HZO 938.9 23.83 2.86 10.72HNI HNI 428.7 51.64 5.94 10.32

ADRsofAsian companies*52-WEEK Volume, CHANGE

High Low Stock Symbol inOOOs Latest Points Percentage

$25.32 $19.39 TaiwanSemi TSM 12,438.9 $24.38 0.54 2.27%37.27 25.03 InfosysADS INFY 3,355.6 34.94 0.38 1.107.41 5.13 MitsuUFJADS MTU 2,945.5 7.20 0.17 2.24

32.60 15.93 SonyADS SNE 2,295.1 30.70 1.66 5.1213.24 8.47 ICICI BkADS IBN 2,006.4 10.33 0.03 0.2951.80 36.59 TataMtrsADS TTM 1,313.3 41.47 1.06 2.4973.91 42.92 BHPBillitonADS BHP 1,186.2 49.26 1.46 3.049.50 1.51 NovogenADS NVGN 991.6 6.65 0.75 10.1414.48 2.44 VimicroIntlADS VIMC 911.3 13.21 0.21 1.56251.99 148.16 BaiduADS BIDU 848.9 213.24 0.13 0.06

8.12 5.68 AdvSemiEnggADS ASX 704.3 7.29 0.08 1.112.60 1.26 SifyTechsADS SIFY 626.6 1.66 0.21 14.6211.00 1.04 GeneticTechsADS GENE 616.9 4.88 ... ...69.74 40.74 CtripIntADS CTRP 590.6 65.89 0.25 0.3838.02 29.60 CanonADS CAJ 543.4 37.32 0.09 0.2436.06 28.61 HondaMtrADS HMC 531.2 36.03 0.56 1.5831.84 21.78 SKTelecomADS SKM 501.2 28.76 1.08 3.909.17 6.30 SiliconwareADS SPIL 500.4 8.31 0.30 3.75

63.97 39.27 HDFCBnk HDB 475.8 57.14 0.06 0.1014.18 10.86 WiproADS WIT 465.2 11.77 0.08 0.686.03 3.63 AUOptrncs AUO 451.6 5.02 0.02 0.4019.35 12.93 ChinaUnicomADS CHU 431.8 19.29 0.41 2.152.58 1.94 UtdMicroADS UMC 406.8 2.34 0.06 2.63

74.84 44.48 ChinaMobile CHL 384.0 74.14 0.15 0.20122.80 64.92 NeteaseADS NTES 348.9 116.58 1.94 1.6934.79 25.07 NipponADS NTT 303.1 34.79 0.58 1.7034.12 15.16 SiliconMotionADS SIMO 276.1 32.79 0.85 2.53

145.80 106.35 ToyotaMtrADS TM 243.1 141.19 0.47 0.333.85 1.73 RediffADS REDF 238.8 2.00 0.02 1.02

86.99 53.14 POSCOADS PKX 235.3 59.17 2.51 4.43

*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

4.250 Australia 2 1.937 139.3 135.2 121.9 220.3 1.901 1.792 2.649

3.250 10 2.527 56.6 46.5 48.7 127.2 2.446 2.399 3.977

3.500 Belgium 2 -0.185 -73.0 -71.8 -71.8 -15.8 -0.169 -0.145 0.287

2.600 10 0.328 -163.4 -165.6 -154.3 -57.6 0.325 0.369 2.130

0.250 France 2 -0.167 -71.1 -69.9 -70.9 -16.7 -0.151 -0.136 0.278

0.500 10 0.411 -155.0 -156.9 -142.4 -70.0 0.412 0.487 2.006

0.500 Germany 2 -0.262 -80.6 -80.2 -79.4 -26.5 -0.254 -0.221 0.180

0.500 10 0.167 -179.5 -181.5 -171.5 -118.0 0.166 0.197 1.526

1.500 Italy 2 0.114 -43.1 -46.0 -34.6 33.4 0.089 0.227 0.779

3.750 10 1.389 -57.3 -59.9 -64.1 38.3 1.382 1.270 3.089

0.100 Japan 2 -0.001 -54.6 -54.7 -55.4 -35.5 0.002 0.020 0.090

0.400 10 0.316 -164.5 -167.4 -160.1 -208.9 0.307 0.311 0.616

2.500 Netherlands 2 -0.208 -75.3 -72.2 -74.6 -17.6 -0.174 -0.173 0.270

2.000 10 0.230 -173.1 -175.0 -159.9 -85.0 0.231 0.312 1.855

4.200 Portugal 2 0.078 -46.7 -45.1 -47.1 64.7 0.098 0.102 1.092

2.875 10 1.968 0.7 2.8 -17.2 94.2 2.009 1.740 3.647

3.800 Spain 2 0.031 -51.4 -49.7 -40.9 15.0 0.052 0.164 0.595

1.600 10 1.363 -59.8 -60.1 -65.6 34.3 1.380 1.256 3.048

3.750 Sweden 2 -0.323 -86.8 -87.1 -89.1 12.2 -0.323 -0.317 0.567

2.500 10 0.354 -160.7 -165.4 -149.9 -66.8 0.327 0.412 2.038

1.000 U.K. 2 0.655 11.0 15.6 -5.3 26.0 0.705 0.520 0.705

2.750 10 1.718 -24.4 -24.1 -37.7 -2.7 1.740 1.534 2.679

0.500 U.S. 2 0.545 ... ... ... ... 0.549 0.573 0.445

2.000 10 1.961 ... ... ... ... 1.981 1.911 2.706

Keymoney ratesLatest 52wks ago

Prime rates

U.S. 3.25% 3.25%

Canada 2.85 3.00

Japan 1.475 1.475

Britain 0.50 0.50

ECB 0.05 0.25

Switzerland 0.50 0.50

Australia 2.25 2.50

HongKong 5.00 5.00

Libor

Onemonth 0.18175% 0.15230%

Threemonth 0.27750 0.22875

Sixmonth 0.40490 0.32280

One year 0.69915 0.54830

Latest 52wks ago

Euro Libor

Onemonth -0.04571% 0.22571%

Threemonth -0.00500 0.29643

Sixmonth 0.06071 0.39200

One year 0.18000 0.55814

Euribor

Onemonth -0.03400% 0.25300%

Threemonth -0.00200 0.33200

Sixmonth 0.06800 0.43200

One year 0.17500 0.60600

Hibor

Onemonth 0.23786% 0.21643%

Threemonth 0.38500 0.37643

Sixmonth 0.54143 0.54929

One year 0.84214 0.86357

Offer Bid

Eurodollars

Onemonth 0.2300% 0.1300%

Threemonth 0.3000 0.2000

Sixmonth 0.3900 0.2900

One year 0.6500 0.5500

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. 0.10% 0.05%

Euro zone n.a. n.a.

Sources:WSJMarketDataGroup, SIX Financial Information, Tullett

U.S.Treasuryyield 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

Wednesday

TOTALRETURNYield to Modified Month Quarter Year

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

30-year Treasury 2.654% 20.66 2.16% 2.16% 2.91 % 22.00%10-year Treasury 1.972 8.85 0.25 0.25 2.40 9.827 Year Treasury 1.733 6.50 0.05 0.05 2.32 7.13Five-year Treasury 1.388 4.76 0.01 0.01 1.84 4.38Ryan Index 1.532 7.61 0.38 0.38 1.91 7.673 Year Treasury 0.894 2.94 0.11 0.11 1.14 2.26Two-year Treasury 0.549 1.93 0.05 0.05 0.60 1.121 Year Treasury 0.219 0.94 0.05 0.05 0.22 0.42Six-month Treasury 0.092 0.50 0.05 0.05 0.12 0.22Ryan Cash Index-a 0.087 0.44 0.03 0.03 0.10 0.18Three-month bill 0.025 0.25 0.01 0.01 0.04 0.06

One-month bill 0.010 0.08 ... ... 0.01 0.03

a-Performance of a cash investment Source: Ryan ALM

SCANNING THE GLOBE

4 | Friday - Sunday, April 24 - 26, 2015 THEWALL STREET JOURNAL.

North Korean leader Kim Jong Un tours a plant in Pyongyang that producesmissile parts and other military supplies in a photo released this month.

EURO

PEANPRESSPHOTO

AGEN

CY

WORLD NEWS: ASIA

Terror Concerns Cloud Gallipoli TributeFears over the possibility of ter-

rorist attacks are overshadowingplans for Australians and New Zea-landers to commemorate the his-toric battle for Gallipoli, a day thatshaped their nations identity.

April 25 marks the 100th anni-versary of a World War I landing inTurkey that began a bloody battleknown as the Gallipoli campaign.Thousands of Australian and NewZealand Army Corps troops, knownas Anzacs, died during a failed at-tempt to reach Constantinoplemodern Istanbulfrom the sea.

The flawed Allied campaignhelped forge the national identity ofAustralians and New Zealanders,many of whom had previously seenthemselves as British. Every year,thousands travel to Turkey for adawn service on the shores of Galli-poli peninsula, flags draped acrosstheir shoulders in a show of patrio-tism. Anzac Day is also a public hol-iday in Australia when veterans areremembered across the country atdawn services and parades.

But tensions are running highover this years commemorations,both at home and abroad.

Five Melbourne teenagers werearrested during antiterrorism raidsin the Australian city on April 18 af-ter authorities said they uncovereda plot to attack police during AnzacDay commemorations there. Thesame day, police in Britain arrestedan unnamed 14-year-old in thenorthern English town of Blackburnon suspicion of involvement in thecommission, preparation or instiga-tion of acts of terrorism. Australianauthorities said the British arrestwas connected to their long-runningprobe into the alleged holiday plot.

The pilgrimage to Turkey has alsobecome riskier, security analysts say,

as Turkeys porous 800-kilometerborder with Syria has made it one ofthe main gateways for the influx ofthousands of foreign fighters to thebattlefields of Syria and Iraq.

Anzac Day is the premier targetin terms of national identity. If youwere going to make a splash thishas got to be on your wish list, saidAl Gillespie, an international rela-tions expert at Waikato University.The region is just going to beflooded with high-value potentialtargets, added Mr. Gillespie, whoadvises the New Zealand govern-ment on foreign affairs.

Turkeys border has become astrategic problem for Western na-tions seeking to defeat Islamic Stateand preventing battle-hardened mil-

itants from returning to their homecountries to commit attacks.

Six Minnesota men were chargedMonday in connection with at-tempts to join Islamic State, after a10-month investigation into a net-work of young Somali-Americans.The six repeatedly tried to travel toSyria, including via Turkey, despitebeing stopped by Federal Bureau ofInvestigation agents and warnedabout the consequences. Authoritiesarrested the men on Sunday.

Australia has been one of thelargest per capita Western sourcecountries for Islamic State recruitsbecause of the countrys history oftaking migrants from northern Leb-anon with strong antipathy toSyrias ruling Assad regime. At least

20 Australians have been killed inthe Syria-Iraq conflict, according tothe Australian government.

Australian Prime Minister TonyAbbott, in Turkey for the Anzac Daycommemorations, met with hisTurkish counterpart Ahmet Davuto-glu and agreed to boost cooperationto counter terrorism, tackle its fi-nancing and mitigate threats fromforeign fighters.

With over 100 Australians fight-ing with [Islamic State] in Iraq andSyria, and the arrest this week inMelbourne of young men intent onbringing the violence to Australia,Australia will continue to do all itcan to stop foreign fighters, Mr.Abbott said on Thursday.

Terrorist activity has become a

growing domestic problem for Aus-tralia. Police carried out raidsacross the country last year after analleged Islamic State-inspired plotto behead local citizens, arresting atleast 15 people. In December, threepeople including a gunman werekilled when police stormed the LindtCaf in Sydney after a 17-hour hos-tage standoff.

The Australian government haswarned travelers to Turkey to exer-cise caution. Turkey is sending3,700 police and paramilitary policeto the Gallipoli peninsula for theAnzac Day centennial, where about10,500 Australians and New Zea-landers are expected this year.

Wherever you go in the worldtoday, there is a security issue andcountries such as ours are livingwith heightened threats, Mr. Ab-bott said this week. Certainly, atAnzac events in Australia over thenext few days there will be a visiblesecurity presence, and on the Galli-poli Peninsula.

Brad Gavin, a 26-year-old fromSydney, is in Gallipoli to honor hisgreat-uncle, who served in the firstinfantry to land on the peninsulaand was wounded in the campaign.

I believe it is very important topay respect to those who came be-fore us and put their lives on theline, he said. The very least I cando as an Australian is pay my re-spect.

For Diane Melloy, an Australianwho was married to a World War Iveteran, Bob Melloy, for 27 years,attending the centennial commemo-rations is an important part of re-membering the war.

I just trust it will be all right,the 71-year-old from Brisbane said.The world must not stop becauseof terrorists. We cant just curl up.Emre Peker and James Glynn

contributed to this article.

BY LUCY CRAYMER

An Australian student in Turkey kneels on Thursday before graves of Australian soldiers killed in the Gallipoli campaign.

GETTY

IMAGES

China Warns North Korean Nuclear Threat Is RisingA well-armed North Korea may

prompt the U.S. to adopt counter-measures, especially in missile de-fense. Adm. William Gortney, headof U.S. Northern Command, said thismonth that defense officials believeNorth Korea can now mount a nu-clear warhead on an intercontinen-tal ballistic missile called the KN-08.U.S. officials dont believe the mis-sile has been tested, but experts es-timate it has a range of about 5,600mileswithin reach of the westernedge of the continental U.S., includ-ing California.

An increase in North Koreas nu-clear arsenal feeds internationalconcern about proliferation from acountry that, U.S. officials said, pre-viously exported nuclear technologyto Syria and missile components toIran, Yemen and Egypt.

In Washington, some Republicanlawmakers said the pending WhiteHouse deal with Iran could mirrorthe 1994 nuclear agreement theClinton administration made withNorth Korea. The deal was intendedto halt Pyongyangs nuclear weap-ons capabilities, but instead, theyallege, provided diplomatic cover toexpand them. North Korea tested itsfirst nuclear device in 2006.

We saw how North Korea wasable to game this whole process,U.S. Rep. Ed Royce (R., Calif.), chair-man of the House Foreign AffairsCommittee, said in an interview. Iwouldnt be surprised if Iran had itshands on the same playbook.

Continued from first page The pace of North Koreas nu-clear arms growth depends on itswarhead designs and its uranium-enrichment capacity, Mr. Royce said:We know they have one factory; wedont know if they have anotherone. Recent estimates by U.S. ex-perts range from 10 to 16 nuclearbombs today.

Mr. Royce said he met Chineseacademics on a recent trip to Bei-jing and was struck by the concernshe heard about Pyongyangs nuclearcapabilities.

Relations between North Koreaand China have deteriorated sinceXi Jinping became Chinas leader in2012 and North Koreas leader, KimJong Un, took power following thedeath of his father in late 2011.

China, which is North Koreaslargest investor, aid donor and tradepartner, has for most of the past de-cade underestimated Pyongyangsnuclear capabilities, nuclear expertssaid, including its capacity to pro-duce fissile material.

Estimates of North Koreas capa-bilities by Chinese experts began toalign with those in the U.S. after2010, and moved beyond after 2013,according to people familiar withexchanges on the matter betweenChina and the U.S.

Until recently, the Chinese hada pretty low opinion of what theNorth Koreans could do, said DavidAlbright, an expert on North Koreasnuclear weapons and head of the In-stitute for Science and InternationalSecurity in Washington. I think

theyre worried now.Chinas foreign and defense min-

istries didnt respond to requestsfor comment. Diplomats at NorthKoreas mission to the United Na-tions didnt respond to attempts toseek comment. The White House,State Department and Pentagon de-clined to provide U.S. estimates ofNorth Koreas nuclear arsenal.

We have been and remain con-cerned about North Koreas nuclearprogram and believe China shouldcontinue to use its influence to cur-tail North Koreas provocative ac-tions, said Patrick Ventrell, aspokesman for the U.S. National Se-curity Council.

He said the U.S. was working withother countries to implement U.N.sanctions designed to press NorthKorea to return to credible and au-

thentic denuclearization talks and totake concrete steps to denuclearize.

The U.S. hasnt engaged in regu-lar high-level talks with Pyongyangsince 2012, when North Korea con-ducted a long-range missile test.The U.S. has instead pressed Chinato use its economic leverage to reinin North Korea.

The latest Chinese estimates ofNorth Koreas nuclear capabilitywere shared during a Februarymeeting at the China Institute of In-ternational Studies, the Chinese for-eign ministrys think tank. The Chi-nese brought technical, political anddiplomatic experts on North Koreasnuclear program, as well as militaryrepresentatives, said people familiarwith the meeting.

Mr. Hecker, the U.S. teams leadtechnical expert, has long been part

of international efforts to under-stand North Koreas nuclear pro-gram. In 2010, he revealed NorthKorea had a large uranium enrich-ment program after he saw the fa-cilities during a visit there.

The estimate that North Koreamay have had 20 warheads at theend of last yearand could build 20more by 2016was given during apresentation by one of Chinas topuranium enrichment experts, ac-cording to people familiar with themeeting. They said it was the firsttime they had heard such a highChinese estimate.

Mr. Hecker declined to commenton the meeting but said he had metwith Chinese experts to discussNorth Koreas capabilities at leastonce a year since 2004.

They believe on the basis ofwhat theyve put together now thatthe North Koreans have enough en-riched uranium capacity to be ableto make eight to 10 bombs worth ofhighly enriched uranium per year,said Mr. Hecker, who added that es-timates by China and the U.S. in-volved a great deal of guesswork.

U.S. officials didnt attend themeeting but some expressed surprisewhen they were later briefed on thedetails, said people familiar with thematter. Some Chinese experts saidthe estimates revealed in Februarywere at the higher range among localpeers. Mr. Hecker said he estimatedNorth Korea could have no more than12 nuclear bombs now, and as manyas 20 next year.


Currencies London close onApril 23Per In

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

Argentina peso-a 9.6071 0.1041 8.8844 0.1126

Brazil real 3.2221 0.3104 2.9797 0.3356

Canada dollar 1.3122 0.7621 1.2138 0.8239

Chile peso 666.98 0.001499 616.70 0.001622

Colombia peso 2671.00 0.0003744 2474.50 0.0004041

EcuadorUS dollar-f 1.0813 0.9249 1 1

Mexico peso-a 16.5665 0.0604 15.3216 0.0653

Peru sol 3.3873 0.2952 3.1325 0.3192

Uruguay peso-e 28.942 0.0346 26.770 0.0374

U.S. dollar 1.0813 0.9249 1 1

Venezuela bolivar 6.81 0.146815 6.30 0.158729

ASIA-PACIFIC

Australia dollar 1.3891 0.7199 1.2847 0.7784

China yuan 6.7037 0.1492 6.1993 0.1613

Hong Kong dollar 8.3800 0.1193 7.7503 0.1290

India rupee 68.4260 0.0146 63.2844 0.0158

Indonesia rupiah 13999 0.0000714 12947 0.0000772

Japan yen 129.31 0.007733 119.60 0.008361

Kazakhstan tenge 200.22 0.004996 185.88 0.005380

Macau pataca 8.6529 0.1156 8.0034 0.1249

Malaysia ringgit-c 3.9080 0.2559 3.6143 0.2767

NewZealand dollar 1.4248 0.7019 1.3179 0.7588

Pakistan rupee 109.897 0.0091 101.648 0.0098

Philippines peso 47.818 0.0209 44.298 0.0226

Singapore dollar 1.4530 0.6882 1.3437 0.7442

South Koreawon 1168.38 0.0008558 1080.58 0.0009254

Sri Lanka rupee 144.12 0.0069388 133.30 0.0075019

Taiwan dollar 33.559 0.02980 31.037 0.03222

Thailand baht 35.065 0.02852 32.430 0.03084

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

Major stockmarket 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 1598.84 4.30 0.27% 12.1% 11.7%

Australia SPX/ASX 200 5844.80 7.30 0.13 8.0 5.7

China Shanghai Composite 4414.51 16.01 0.36 36.5 114.6

Hong Kong Hang Seng 27827.70 -106.15 -0.38% 17.9 23.3

India S&PBSE Sensex 27735.02 -155.11 -0.56 0.9 21.2

Indonesia Jakarta Composite 5436.21 -0.91 -0.02 4.0 11.1

Japan Nikkei Stock Average 20187.65 53.75 0.27 15.7 40.1

Topix 1624.87 3.08 0.19 15.4 39.5

Malaysia Kuala Lumpur Composite 1846.08 -8.69 -0.47 4.8 -1.0

NewZealand NZSX-50 5757.91 -35.70 -0.62 3.4 11.7

Pakistan KSE 100 33456.74 -33.90 -0.10 4.1 16.2

Philippines PSEi 7892.05 59.02 0.75 9.1 17.2

Singapore Straits Times 3502.75 6.51 0.19 4.1 6.7

South Korea Kospi 2173.41 29.52 1.38 13.5 8.8

Taiwan Weighted 9797.49 184.49 1.92 5.3 9.5

Thailand SET 1544.84 -7.17 -0.46 3.1 8.6

EUROPE Stoxx Europe 600 407.18 -1.81 -0.44 18.9 21.5

Stoxx Europe 50 3538.35 -7.77 -0.22 17.8 20.3

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

Euro Zone Euro Stoxx 380.15 -2.54 -0.66% 18.9% 17.4%

Euro Stoxx 50 3697.88 -26.61 -0.71 17.5 16.4

Denmark OMXCopenhagen 878.29 -11.49 -1.29 30.1 37.1

Finland OMXHelsinki 8990.41 -113.28 -1.24 15.9 22.3

France CAC-40 5178.91 -32.18 -0.62 21.2 16.4

Germany DAX 11723.58 -143.79 -1.21 19.6 22.8

Italy FTSEMIB 23199.43 -115.97 -0.50 22.0 7.0

Netherlands AEX 503.00 -2.72 -0.54 18.5 26.6

Russia RTSI 1028.47 24.47 2.44% 30.1 -12.2

Spain IBEX 35 11425.8 26.60 0.23 11.2 9.6

Switzerland SMI 9338.25 -19.84 -0.21 4.0 10.6

Turkey BIST 100 83780.35 Closed -2.3 14.5

U.K. FTSE 100 7053.67 25.43 0.36 7.4 5.7

AMERICAS DJAmericas 522.11 2.05 0.39 3.0 10.4

Brazil Bovespa 55136.97 519.61 0.95 10.3 6.9

Argentina Merval 11838.44 150.87 1.29 38.0 76.6

Mexico IPC 45242.96 10.92 0.02 4.9 12.3

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. 1.285 0.664 1.214 6.199 0.925 7.750 63.284 12947.00 119.602 1.318 1080.58 3.614 44.298 1.344 0.955 31.037 32.430Australia 0.778 0.517 0.945 4.826 0.720 6.033 49.245 10077.95 93.080 1.026 841.10 2.813 34.477 1.046 0.744 24.159 25.244Britain 1.505 1.934 1.827 9.332 1.392 11.665 95.253 19487.18 180.020 1.983 1626.50 5.440 66.570 2.023 1.438 46.718 48.815Canada 0.824 1.059 0.547 5.108 0.762 6.386 52.132 10668.70 98.546 1.086 890.40 2.978 36.502 1.107 0.787 25.575 26.719China 0.1613 0.207 0.107 0.196 0.149 1.250 10.205 2088.43 19.293 0.213 174.30 0.583 7.134 0.217 0.154 5.007 5.231Euro 1.081 1.389 0.718 1.312 6.704 8.380 68.426 13998.94 129.310 1.425 1168.38 3.908 47.818 1.453 1.033 33.559 35.065

HongKong 0.129 0.166 0.086 0.157 0.800 0.119 8.166 1670.53 15.432 0.170 139.42 0.466 5.706 0.173 0.123 4.005 4.184India 0.0158 0.0203 0.0105 0.0192 0.0980 0.0146 0.1225 204.65 1.8905 0.0208 17.08 0.0571 0.7002 0.0212 0.0151 0.4906 0.5126

Indonesia 0.0001 0.0001 0.0001 0.0001 0.0005 0.0001 0.0006 0.0049 0.0092 0.0001 0.08 0.0003 0.0034 0.0001 0.0001 0.0024 0.0025Japan 0.008 1.074 0.006 0.010 0.052 0.008 0.065 0.529 108.24 0.011 9.03 3.025 0.370 1.124 0.0080 0.260 27.115

NewZealand 0.759 0.975 0.504 0.921 4.705 0.702 5.882 48.020 9825.50 90.760 819.94 2.743 33.617 1.020 0.725 23.551 24.611SouthKorea 0.0009 0.0012 0.0006 0.0011 0.0057 0.0009 0.0072 0.0585 11.98 0.1107 0.0012 0.0033 0.0409 0.0012 0.0009 0.0287 0.0300

Malaysia 0.277 0.355 0.184 0.336 1.715 0.256 2.145 17.504 3582.16 33.092 0.365 298.97 12.236 0.372 0.264 8.587 8.973Philippines 0.023 0.029 0.015 0.027 0.140 0.021 0.175 1.428 292.27 2.705 0.030 24.43 0.082 0.030 0.022 0.702 0.733Singapore 0.744 0.956 0.494 0.903 4.613 0.688 5.767 47.094 9634.62 88.998 0.981 804.04 2.690 32.908 0.711 23.096 24.133

Switzerland 1.047 1.345 0.696 1.270 6.490 0.968 8.112 66.239 13554.23 125.200 1.380 1131.23 3.784 46.375 1.407 32.493 33.951Taiwan 0.032 0.041 0.021 0.039 0.200 0.030 0.250 2.038 419.58 3.854 0.042 34.82 0.116 1.425 0.043 0.031 1.045

Thailand 0.031 0.040 0.020 0.037 0.191 0.029 0.239 1.951 399.23 3.688 0.041 33.32 0.111 1.364 0.041 0.029 0.957

Source: Tullett Prebon

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

0.68%39.04 Shenzhen -c 653.14 4.74 0.73% 49.8% 104.7% 25.5%1.89 22.18 U.S. TSM 22094.20 0.73 0.00 3.1 12.2 15.96.10 14.33 Global SelectDiv 241.48 0.02 0.01 0.8 -7.4 5.36.98 13.73 Asia/Pacific SelectDiv 304.59 0.33 0.11 -1.6 -13.2 -1.1

HongKongSelectDiv -c 203.73 0.36 0.18 4.5 3.1 2.5U.S. SelectDividend -d 1434.94 2.90 0.20 0.5 10.5 16.7

1.98 21.22 IslamicMarket 3009.22 -1.09 -0.04 5.1 7.8 10.62.31 18.79 IslamicMarket 100 3314.63 -3.85 -0.12 4.1 8.3 11.82.08 12.98 Islamic China/HKTitans 30 2132.60 16.86 0.80 23.1 26.0 9.5

SustainabilityKorea -c 1526.88 28.95 1.93 10.9 6.7 0.33.75 28.75 Brookfield Infrastructure 3638.62 17.41 0.48 1.7 7.3 12.0

DJCommodity 560.12 3.61 0.65 -0.1 -24.0 -9.3

MSCI indexesDeveloped and emerging-market regional and country indexesfromMSCI as of April. 23, 2015

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

2.40% 18 MSCIACWI 438.12 -0.30% 5.0% 6.6%

2.40 19 World (DevelopedMarkets) 1,786.77 -0.27 4.5 6.7

1.80 25 WorldSmall Cap 340.27 -0.04 6.2 4.1

2.40 19 Kokusai (World ex-Japan) 1,793.94 -0.24 3.6 5.9

2.90 18 EAFE 1,910.67 0.03 7.7 -0.3

2.60 13 EmergingMarkets (EM) 1,047.61 -0.52 9.5 5.3

2.90 14 ACASIAPACIFICEX-JAPAN 514.91 -0.41 10.2 9.5

2.50 13 ACFar East ex-Japan 601.27 -0.67 13.6 16.3

1.70 17 Japan 998.65 0.83 15.2 35.1

2.80 11 China 84.12 1.31 27.4 41.5

1.30 20 ChinaA (ChinaDomestic) 4,669.63 2.59 38.2 117.8

2.70 13 HongKong 15,444.85 0.07 13.2 20.1

1.30 20 India 1,050.42 0.49 3.4 23.4

1.40 11 Korea 587.53 0.26 9.5 1.9

3.10 17 Malaysia 647.72 -0.44 5.1 -1.7

3.40 14 Singapore 1,833.03 -0.30 3.5 9.5

2.80 15 Taiwan 354.41 0.85 3.3 13.4

2.80 17 Thailand 540.04 -1.85 3.4 11.5

4.40 16 Australia 1,191.26 -0.70 7.8 7.8

4.30 20 NewZealand 111.98 -0.13 -1.3 -2.0

1.90 21 USBROADMARKET 2,401.32 -0.45 3.2 12.3

3.10 19 EUROPE 139.18 -0.03 19.2 22.3

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&PDowJones IndicesPrice-to- PERFORMANCE

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

2.30%20.29 Global TSM 3473.40 0.98 0.03% 5.3% 6.1% 11.3%2.80 17.43 GlobalDOW 2599.34 -1.45 -0.06 3.9 3.3 11.12.85 16.24 Global Titans 50 244.06 0.28 0.11 2.3 3.6 9.62.25 16.46 Asia/Pacific TSM 1596.10 1.56 0.10 11.9 11.7 8.12.20 17.00 S&PBMIAsiaPacEmgMkts 186.66 0.26 0.14 11.9 8.8 7.63.05 21.70 DevEuropeTSM 3301.25 -3.70 -0.11 5.9 -5.5 10.42.70 15.30 S&PBMIEmgMarkets 270.89 0.41 0.15 8.6 6.3 2.13.08 12.19 AsianTitans 50 161.18 0.13 0.08 13.3 9.3 7.23.08 10.97 BRIC50 560.98 -3.43 -0.61 13.8 14.6 1.32.37 12.80 S&PBMIChina 572.56 -1.39 -0.24 23.6 35.2 12.72.58 11.80 ChinaOffshore 50 5347.59 -21.99 -0.41 18.7 36.4 11.31.26 21.62 Shanghai -c 597.59 1.16 0.19 39.0 121.7 26.3

GLOBAL MARKETS LINEUP

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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: LondonMetal Exchange;NYMEX:NewYorkMercantile Exchange;ICE: IntercontinentalExchange *Data as of April 22, 2015

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

Corn (cents/bu.) CBOT 384.00 4.50 1.19% 424.50 375.00Soybeans (cents/bu.) CBOT 984.75 13.00 1.34 1,070.75 949.00Wheat (cents/bu.) CBOT 505.25 6.25 1.25 609.00 484.50Live cattle (cents/lb.) CME 148.400 2.375 1.63 158.250 138.575Cocoa ($/ton) ICE-US 2,799 17 0.61 3,023 2,671Coffee (cents/lb.) ICE-US 143.00 -0.65 -0.45% 189.80 132.00Sugar (cents/lb.) ICE-US 13.00 0.41 3.26 16.40 12.03Cotton (cents/lb.) ICE-US 65.33 2.41 3.83 66.70 58.87Rapeseed (euro/ton) LIFFE 364.50 2.50 0.69 365 338Cocoa (pounds/ton) LIFFE 1,932 8 0.42 2,029 1,857Robusta coffee ($/ton) LIFFE 1,828 -13 -0.71 2,099 1,712

Copper ($/lb.) COMEX 2.6960 0.0190 0.71 2.9105 2.4245Gold ($/troy oz.) COMEX 1190.90 4.00 0.34 1,309.00 1,142.40Silver ($/troy oz.) COMEX 15.845 0.009 0.06 18.515 15.310Aluminum ($/ton)* LME 1,813.50 7.50 0.42 1,889.50 1,746.50Tin ($/ton)* LME 15,625.00 225.00 1.46 19,750.00 14,760.00Copper ($/ton)* LME 5,931.00 -36.50 -0.61 6,247.00 5,369.00Lead ($/ton)* LME 2,052.00 28.00 1.38 2,052.00 1,698.00Zinc ($/ton)* LME 2,235.00 37.00 1.68 2,237.00 2,005.00Nickel ($/ton)* LME 12,690 -90 -0.70 15,540 12,320

Crude oil ($/bbl.) NYMEX 58.03 1.87 3.33 58.82 45.93Heating oil ($/gal.) NYMEX 1.9275 0.0544 2.90 1.9350 1.5631RBOB gasoline ($/gal.) NYMEX 1.9915 0.0650 3.37 1.9964 1.5284Natural gas ($/mmBtu) NYMEX 2.584 -0.070 -2.64 3.2320 2.5210Brent crude ($/bbl.) ICE-EU 64.89 2.16 3.44 65.13 50.10Gas oil ($/ton) ICE-EU 586.50 14.25 2.49 588.25 467.25

Sources: SIX Financial Information;WSJMarket Data Group

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

Bulgaria lev 1.956 0.5112 1.8091 0.5528

Croatia kuna 7.587 0.1318 7.017 0.1425

Euro zone euro 1 1 0.9249 1.0813

Czech Rep. koruna-b 27.396 0.0365 25.337 0.0395

Denmark krone 7.4610 0.1340 6.9007 0.1449

Hungary forint 300.12 0.003333 277.57 0.003603

Iceland krona 146.89 0.006808 135.85 0.007361

Norway krone 8.4805 0.1179 7.8442 0.1275

Poland zloty 4.0023 0.2499 3.7016 0.2702

Russia ruble-d 55.066 0.01816 50.928 0.01964

Sweden krona 9.3460 0.1070 8.6440 0.1157

Switzerland franc 1.0328 0.9683 0.9552 1.0469

Turkey lira 2.9327 0.3410 2.7123 0.3687

Ukraine hryvnia 24.2332 0.0413 22.4975 0.0444

U.K. pound 0.7184 1.3921 0.6643 1.5053

MIDDLE EAST/AFRICA

Bahrain dinar 0.4076 2.4532 0.3770 2.6522

Egypt pound-a 8.2445 0.1213 7.6243 0.1312

Israel shekel 4.2519 0.2352 3.9324 0.2543

Kuwait dinar 0.3269 3.0591 0.3023 3.3078

Oman sul rial 0.4162 2.4025 0.3850 2.5974

Qatar rial 3.936 0.2541 3.640 0.2747

Saudi Arabia riyal 4.0550 0.2466 3.7500 0.2667

South Africa rand 13.1556 0.0760 12.1676 0.0822

United Arab dirham 3.9711 0.2518 3.6730 0.2723

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

THEWALL STREET JOURNAL. Friday - Sunday, April 24 - 26, 2015 | 528 | Friday - Sunday, April 24 - 26, 2015 THEWALL STREET JOURNAL.

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

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: 23/1 0.60 102.03% 0.01% 0.62 0.53 0.57

Eur. HighVolatility: 20/1 0.51 101.78 0.01 0.74 0.48 0.59

EuropeCrossover: 23/1 2.66 110.89 0.05 2.79 2.43 2.61

Asia ex-Japan IG: 23/1 1.07 99.66 0.01 1.15 1.04 1.09

Japan: 23/1 0.49 102.61 0.01 0.60 0.48 0.55

Note: Data as ofApril 22

SpreadsSpreads onve-year swapsfor corporatedebt; based onMarkit iTraxxindexes.

In percentage points

4.00

3.00

2.00

1.00

0

tEurope Sub Financials

tEurope Crossover

2014Nov.

2015Dec. Jan. Feb. Mar. April

Index roll

Source: Markit Group

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

Giants around theworld

DowJonesCountryTitansINDEXPERFORMANCE

Previous session Year-to-date 52-week

China 88 -0.63% 27.7% 112.5%

Italy -0.56 21.7 7.0

France -0.92 21.1 17.3

Netherlands -0.86 19.9 31.2

Germany -1.44 18.8 19.6

Sweden -1.27 16.7 26.6

HongKong 0.003 13.2 11.4

Spain -0.07 12.2 12.8

SouthKorea 1.97 8.0 -2.4

U.K. 0.25 7.5 5.1

Singapore 0.14 4.8 6.9

Switzerland -0.77 3.2 8.2

Turkey -0.60 -3.6% 12.6

Brazil 0.75 -3.7 -24.4

DowJonesRegional SectorTitans

Tiger 50* 0.04 15.0% 19.2

Asian 50 0.25 13.5 9.3

ConstructnMat -0.04 9.3 -5.4

Auto&Parts 0.23 9.2 3.2

Health Care -0.11 8.4 18.2

Telecomm 0.87 7.2 6.2

Retail 0.002 6.9 17.2

PersH'holdGds 0.14 6.8 9.8

Chemicals -0.18 5.5 2.5

Travel & Leisure -0.08 5.2 12.8

Real Estate -0.13 5.0 14.2

Global 50 0.18 2.4 3.9

Technology -0.46 2.0 14.7

Arab 50 -0.31 -2.7% -15.1

*Asia excluding Japan

Source: SIX Financial Information

DowJonesAsiaTitans: Thursday's best andworst...

PreviousVolume close, in STOCK PERFORMANCE

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

Japan Tobacco Japan Tobacco $7.56 4,489 5.26% 34.9% 34.9%

Mitsui Co. Japan Industrial Suppliers 21.18 1,680 3.42 14.1 3.6

HyundaiMotor Korea Automobiles 1.22 175,500 3.24 -27.5 3.8

POSCO Korea Iron Steel 0.40 252,000 3.07 -15.7 -8.5

NomuraHoldings Japan Investment Services 87.22 783.20 2.94 27.6 13.5

Industrial Commercial Bank of ChinaHong Kong Banks $413.94 6.81 -2.44% 44.3 20.3

China Life Insurance Hong Kong Life Insurance 45.99 37.75 -2.33 81.9 24.6

Mitsubishi UFJ Financial Group Japan Banks 153.56 861.70 -1.99 55.5 29.7

Bank of China Hong Kong Banks 398.87 5.39 -1.46 58.1 23.3

SunHungKai Properties Hong Kong Real Estate Holding Development 4.13 124.30 -1.11 27.5 5.1

...And the rest ofAsia's blue chipsLatest,

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

NTTDoCoMo 6.53 2,288 2.62% 46.5% 29.4%Japan (Mobile Telecommunications)BHPBilliton 10.32 31.06 2.61 -18.9 5.8Australia (GeneralMining)Taiwan SemiconductorManufacturing 47.85 147.00 2.44 21.5 4.3Taiwan (Semiconductors)TokioMarine Holdings 4.26 5,146 2.18 70.3 30.8Japan (Property Casualty Insurance)AIAGroup 68.05 52.15 2.15 34.9 21.3Hong Kong (Life Insurance)Rio Tinto 2.78 56.30 1.99 -10.6 -2.9Australia (GeneralMining)KDDI 6.38 3,001 1.64 64.7 17.9Japan (Mobile Telecommunications)Mitsubishi 7.29 2,550 1.57 39.3 15.0Japan (Industrial Suppliers)HondaMotor 5.16 4,320 1.53 25.8 22.5Japan (Automobiles)HonHai Precision Industry 57.19 93.30 1.41 17.9 6.1Taiwan (Electrical Components Equipment)Nippon Telegraph Telephone 1.91 8,286 1.40 54.4 33.4Japan (Fixed Line Telecommunications)Woodside Petroleum 1.83 34.80 0.81 -14.9 -8.4Australia (Exploration Production)NissanMotor 11.96 1,293 0.66 45.3 22.3Japan (Automobiles)Hitachi 34.98 842.50 0.66 15.1 -6.5Japan (Electronic Equipment)Itochu 10.39 1,439 0.59 25.7 11.3Japan (Industrial Suppliers)Komatsu 4.46 2,569 0.45 19.9 -4.3Japan (Commercial Vehicles Trucks)Seven I Holdings 2.10 5,333 0.32 38.3 22.4Japan (Broadline Retailers)ToyotaMotor 5.91 8,478 0.19 55.0 12.2Japan (Automobiles)Fanuc 0.76 26,695 0.04 46.9 33.8Japan (Industrial Machinery)Takeda Pharmaceutical 1.82 6,299 ... 40.4 26.1Japan (Pharmaceuticals)

Latest,Volume in local STOCK PERFORMANCE

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

ChinaMobile 19.10 114.40 -0.09% 63.9% 26.1%Hong Kong (Mobile Telecommunications)Mizuho Financial Group 300.41 232.20 -0.13 16.7 14.7Japan (Banks)Shin-Etsu Chemical 1.21 7,756 -0.14 27.4 -1.4Japan (Specialty Chemicals)Canon 4.27 4,449 -0.16 38.3 15.8Japan (Electronic Office Equipment)Nippon Steel SumitomoMetal 39.11 314.40 -0.16 16.9 4.5Japan (Iron Steel)SoftBank 7.20 7,708 -0.27 -0.4 6.9Japan (Mobile Telecommunications)Westpac Banking 4.29 38.18 -0.29 6.7 15.1Australia (Banks)SumitomoMitsui Financial Group 13.07 5,219 -0.42 29.7 19.3Japan (Banks)Commonwealth BkAustralia 2.34 90.72 -0.44 15.0 5.9Australia (Banks)CNOOC 96.30 12.90 -0.46 1.4 23.6Hong Kong (Exploration Production)Woolworths 3.74 28.10 -0.57 -25.5 -8.4Australia (Food Retailers Wholesalers)Australia NewZeald Bkg 3.74 35.26 -0.65 1.7 9.9Australia (Banks)Samsung Electronics 0.18 1,451,000 -0.68 3.1 9.3Korea (Semiconductors)National Australia Bank 4.92 37.84 -0.71 5.7 12.6Australia (Banks)Reliance Industries GDR 0.07 27.55 -0.72 -12.8 -2.3United Kingdom (Exploration Production)East Japan Railway 1.11 10,665 -0.74 44.0 16.9Japan (Travel Tourism)Wesfarmers 2.07 42.13 -0.75 -5.8 1.0Australia (Home Improvement Retailers)China Construction Bank 492.45 7.63 -0.78 41.8 20.2Hong Kong (Banks)PetroChina 99.52 10.06 -0.79 14.1 17.2Hong Kong (Integrated Oil Gas)Tencent Holdings 22.78 160.90 -1.11 51.4 43.0Hong Kong (Internet)

Sources: SIX Financial Information;WSJMarket Data Group

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

HondaMtr 20 5 7 14

Softbank 119 9 18 34

NissanMtr 23 1 2 9

SUZUKIMtr 25 1 4 7

MazdaMtr 49 3 4 9

Indl BkKorea 64 2 2 5

LgElectrs 78 3 ... 5

Kansai Elec Pwr 66 2 3 10

KintetsuGroupHldgs 72 1 6 ...

Ricoh 36 1 1 3

And themost deteriorationCHANGE, in basis points

Yesterday Yesterday Five-day 28-day

NIPPONSTEELSUMITOMOMETAL 43 2 1 1

OdakyuElecRwy 23 1 ... 1

Ptt 95 2 2 ...

HutchisonWhampoa 87 1 2 1

KobeStl 64 1 1 3

SMBCConsumer Fin 24 ... ... 2

Ebara 45 1 1 2

Expt ImportBkof China 107 1 3 6

KT 68 1 ... 3

Mitsui Sumitomo Ins 26 ... ... 1

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 Asias 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%3

502

251

002007 2008 2009 2010 2011 2012 2013 2014 2015

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

ECM as a percentage of total(right axis)t

6 | Friday - Sunday, April 24 - 26, 2015 THEWALL STREET JOURNAL.

Kozo Yamamoto in January

REUTERS

WORLD NEWS: ASIA

Rana Factorys Wounds LingerDHAKA, BangladeshWhen Bithi

Begum tried to go back to work af-ter a years convalescence, she saysshe realized a harsh truth: She wasconsidered damaged goods.

As soon as managers heard Ihad been in Rana Plaza, they turnedme away, Ms. Begum said. Theythink were unfit, physically andmentally.

Two years ago, the 20-year-oldBangladeshi seamstress survived theordeal of being trapped under theruins of the Rana Plaza factory com-plex near Dhaka. The disaster, whichkilled more than 1,100 people andinjured some 3,000 more, focusedglobal attention on substandard con-ditions in Bangladeshs garment in-dustry. Bangladesh exports billionsof dollars of garments annually tobrand-name retailers world-wide.

Following criticism from human-rights groups, international retailerswho source their products from Ban-gladesh set up two separate safetyprograms to inspect and improvethe countrys 4,000-odd factories.

In the two years since the col-lapse, compensation has been slowin coming and has been distributedunevenly, according to survivors andfamilies of the deceased. Ms. Begumsays she has received just 95,000 ta-kas ($1,230) as compensation so far.

Thats what they think my life isworth, she says, adding that sheearned 9,000 takas a month as aseamstress before her factory crum-bled on April 24, 2013.

She worked on the seventh floorof the eight-story building, and suf-fered multiple fractures in her rightleg in the collapse when a concreteslab fell on her. Doctors have oper-ated twice, she said, inserting ametal rod to keep the bones in place.

The injuries mean she may notbe able to work a sewing machineagain. She applied for work as aquality checker, which doesnt re-quire operating a sewing machine,but was unsuccessful.

The International Labor Organi-zation said nearly 3,000 survivorsand victims families have been paidcompensation so far. The amountsvary according to the severity of theinjury. According to ILO documents,

95,000 takas amounts to the mini-mum compensation a Rana survivorwould receive.

Ms. Begum says she received adocument from the claims commit-tee that showed she would receiveno more than the minimum amount.She believes she is entitled to morebased on her level of disability.

The Rana Plaza Donors TrustFund, a fund set up in September2013 to provide compensation toRana Plaza survivors and victimsdependents, has a $7 million short-fall, according to the InternationalLabor Organization, which heads upthe fund. Experts hired by the fundssteering committee, which includesrepresentatives from brands as wellas labor groups, calculated thataround $30 million would be neededto provide adequate compensationto more than 3,000 claimants.

Labor activists say the brandsshould do more. For an industrythat is all about image, the garmentbrands are taking shockingly long todo the right thing and close one ofthe most shameful chapters in the

history book of the global clothingindustry, said Jyrki Raina, ofIndustriALL, an umbrella group ofunions.

Brands say they are making vol-untary contributions to help Ranavictims. VF Corp., owner of labelssuch as Wrangler and The NorthFace, has donated $400,000 to thecompensation fund, although thecompany wasnt purchasing clothesfrom Rana Plaza factories, a com-pany spokesman said.

Although we werent sourcingfrom Rana at the time of the tragiccollapse, that doesnt diminish therole we can play in joining others tohelp affected Bangladeshi workersand their families, said CraigHodges, a VF spokesman.

Last week, the Italian retailerBenetton announced a payment of$1.1 million to the fund. Benettonclothes had been manufactured in aRana Plaza factory shortly beforethe collapse.

Benetton says the company ar-rived at the $1.1 million figure afteran independent assessment based

on the companys involvement inRana Plaza.

Marco Airoldi, CEO of BenettonGroup, said: Whilst there is no realredress for the tragic loss of life wehope that this robust and clearmechanism for calculating compen-sation could be used more widely.

Labor groups had called on Ben-etton to contribute $5 million. Un-fortunately, the true colors of Benet-ton are now revealed, said InekeZeldenrust from the Clean ClothesCampaign, a labor-advocacy group.

In the aftermath of the RanaPlaza collapse, some analysts pre-dicted an exodus of Western brandsfrom Bangladesh. But following a se-ries of measures taken to improveworking conditions, many interna-tional companies opted to stay.

Bangladesh exported clothes val-ued at $21 billion in 2013 and $24billion in 2014.

Reflecting the confident mood inBangladesh, the garment exportersassociation has announced a targetof $50 billion in clothing exports by2020.

BY SYED ZAIN AL-MAHMOOD

Rana Plaza survivor Bithi Begum and her husband, Saidul Islam. She received $1,230 in compensation but cant get hired.

SYED

ZAIN

AL-MAHMOOD/TH

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Abe Ally Urges More Easing by the BOJTOKYOThe Bank of Japan

needs to ease again at its comingmonetary-policy meeting to get con-sumers and businesses to becomemore optimistic and inclined tospend, a ruling-party lawmaker andally of Prime Minister Shinzo Abesaid.

Kozo Yamamoto, a member ofthe ruling Liberal Democratic Party,said he thinks the central bankshould increase asset purchasesin-cluding those of government andcorporate bonds as well as ex-change-traded fundsand start buy-ing municipal bonds at its April 30meeting. He suggested a 10 trillion($83.4 billion) increase in asset pur-chases, in addition to the roughly80 trillion in yearly asset pur-chases the BOJ is currently target-ing.

The sales-tax increase took abig toll, and consumer sentimenthasnt come back enough. On top ofthat, prices look likely to fall [onyear] again, Mr. Yamamoto said inan interview on Thursday, referring

to a three-percentage-point increasein the national sales tax that tookeffect in April 2014.

If the BOJ doesnt do anything,it will give the impression that theyhave reverted to their old ways, andforeigners will start selling Japan inMay, the politician said, noting hefeels that it would be impossible forthe central bank not to act.

He also cited weak production,particularly of cars and IT-relateditems, as a good reason for the BOJto ease.

The politicians comments comeas a fall in prices due to lower oilprices has caused some economiststo be concerned Japan is slippingback into deflation. Japans coreconsumer-price index, excludingfresh food and the effects of thesales tax, was flat in February afterreaching a peak of a 1.5% rise onyear in April 2014.

Mr. Yamamoto is a longtime pro-ponent of monetary easing as a toolto end 15 years of falling prices andwages, and is seen as one of the ar-chitects of Mr. Abes pro-growthpolicy package.

Some business owners and econ-omists have expressed concern thatmore central-bank easing wouldspur further yen weakness, puttingpressure on companies who rely onimported materials.

Mr. Yamamoto brushed off suchconcerns. He said more BOJ easingwas unlikely to cause a one-sided

depreciation of the yen as the Fed-eral Reserve would find it hard toraise interest rates in comingmonths, keeping the dollarsstrength capped, and the EuropeanCentral Banks easing kept the euroweak against the yen.

The dollar was at 119.89 againstthe yen on Thursday, compared witharound 93 when the BOJ an-nounced the start of its new easingprogram roughly two years ago.

Mr. Yamamoto said it was impor-tant that the BOJ stick to its targetof a 2% rise in consumer prices. Hesaid he believed that if the BOJmade every possible effort, 2%could be achieved and the govern-ment could then declare deflationvanquished in autumn 2016. Thatwould pave the way to move aheadwith a second planned sales tax in-crease in April 2017.

He also said that the greatestrisk currently to the world economywas an interest-rate rise in the U.S.,which could cause contractionarypressures around the world if theU.S. central bank did anything unex-pected.

BY ELEANORWARNOCK

Asia, AfricaLeadersPledge toBoost Ties

JAKARTA, IndonesiaLeaders ofAsian and African countries pledgedto build stronger ties in order togain leverage in setting the rules ofglobal trade and diplomacy, wrap-ping up a summit on Thursday thathighlighted Chinas role as a globalfinancier.

At the 60th anniversary of theinaugural summit of Asian and Afri-can nations in 1955, leadersagreedas they have in the pasttopush broad efforts to combat terror-ism and transnational crime, sup-port an independent Palestinianstate, and expand trade, investment,educational and other ties.

We support a trade system thatis more fair, pro-development andinclusive, said Indonesian PresidentJoko Widodo. The summit hasgiven the message to the world thatliving conditions in the world arefar from being fair and peaceful.

Throughout two days ofspeeches, the representatives ofmore than 90 nations highlightedthe need for new international fi-nancial and other institutionssuchas the China-led effort to create theAsian Infrastructure InvestmentBankto promote growth andspending on major infrastructure indeveloping nations.

Chinese President Xi Jinpingloomed large at the summit, gainingpublic support for the AIIB, givingMr. Widodo pledges of investmentand holding meetings with counter-parts from Japan and Iran. OnThursday evening, Mr. Widodowaited on stage for more than halfan hour to deliver his closing state-ment until Mr. Xi entered the ple-nary hall.

The assembled leaders said in astatement that they believe Asia andAfrica, accounting for three-quar-ters of the worlds population, willplay an ever-important role in in-ternational affairs.

Mr. Widodo said an Asia-Africacenter would be created in Indone-sia and ministers will meet twice ayear on the sidelines of meetings atthe United Nations. They issued along-standing demand for more rep-resentation on the Security Council.

Dozens of heads of state andgovernment attended, but eyes werefocused on Mr. Xi and JapanesePrime Minister Shinzo Abe, leadersof the worlds second- and third-largest economies after the U.S.s.

Indonesia and China agreed totriple their bilateral trade to $150billion and construct a high-speedrailway between Jakarta, the Indo-nesian capital, and the city of Ban-dung, Mr. Widodo said. He said heagreed with Japans Mr. Abe to es-tablish a maritime forum and en-courage Japanese investment in In-donesia oriented toward exports.

U.S. Ambassador to IndonesiaRobe

24_04_2015

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Transcript of 24_04_2015