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Ratings: S&P downgrades India
Bombay stocks fell 1.5 percent in early trade yesterday after Standard and Poor's downgraded India's local currency rating to junk status and stripped the country of its investment grade. The global ratings agency cited a setback in privatization reforms, rising debt and a weakening public sector as reasons for the downgrade. It also warned the slow pace of economic reforms made India a case for further downgrades. Reacting to the news, traders on the Bombay Stock Exchange turned aggressive sellers, dealers said, sending the 30-share index 47 points lower to 2,993.78. The index recovered later in the morning to 3,014.06. The ratings agency said it also put a "negative outlook" on India's long-term ratings of both local as well as foreign currencies. The long term local currency rating was downgraded to BB-plus from BBB-minus, while the short term local currency rating was cut to B from A-3.

Mobile phones: Qualcomm raises forecast
Qualcomm Inc will sell more mobile-telephone chips this quarter than forecast and predicted shipments will climb "significantly higher" in the next three months as users buy handsets with advanced features. Qualcomm, whose patents and chips are used in more than 127 million mobile phones, will ship 20 million chips in the period ending Sept. 29, compared with a July forecast of 18 million to 19 million. The San Diego-based company's shares rose as much as 9.5 percent in extended trading following the announcement. Phone makers such as Samsung Electronics Co are ordering more Qualcomm chips to keep pace with demand for mobile phones with faster Internet access, color screens and other new features.

Japan: Markets await reform plan
The Japanese government's leading economic panel will likely unveil emergency reform measures next month, a top minister said yesterday, dashing hopes of an imminent announcement which had lifted local markets. But eyes were still fixed on a meeting by the Economic and Fiscal Policy Council later in the day, on the off-chance it may still reveal new initiatives to boost the economy after the Bank of Japan (BoJ) stunned investors on Wednesday by announcing it would buy shares from banks to support the financial system. "If the BoJ's decision means a first step to set up a total reform plan for Japan's financial system, I will welcome this," State Minister for Economic and Fiscal Policy Heizo Takenaka told reporters.

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