The Swiss bank said that for steel, infrastructure and property demand are leaders in line with recent data that loans to the real estate sector rose 25% in the first nine months of 2015. In the machinery sector, Credit Suisse noted IHI Corp. has targeted turbocharger sales in China where it expects the market expand by 22% and is adding capacity.

Elsewhere, Dongfang Electric showed a Q3 net loss of RMB755 million on lower sales with industrial automation sales expected to continue weaker. 

Among other Asian firms, Yaskawa Electric Corp., reported Q2 results in line with expectations and cited increased demand for servo motors for use in Chinese smartphones and auto parts on the demand side. The company also indicated demand for inverters is weak in the US oil/gas industry and for use in Japanese solar power conditioners.

 Singapore's Keppel's reported a nine-month net profit of S$641 million, below expectations as the new order book this year slipped to S$500 million so far this year with the O&M order book at S$4.1 billion in 3Q16.

 Among sectors, Credit Suisse said auto consumables are holding steady, though expectations of a rebound in high-margin industrial machinery bearing orders could emerge.

 But the bank said machine tool order expectations are bearish with earnings downgrades likely from at least three firms.

 APMEN Business News, Oct 2016