Scrap metal yard on fire in Sydney's west

A LARGE fire has broken out at a scrap metal yard in sydney's west.

A fire and rescue spokesman said six firefighting crews were sent to the scrap yard in Greenacre just after 6.30pm (AEDT) on Friday.

The fire will burn for a long time time, the spokesman said.

"It's scrap metal so it has oil, plastics, paint ... but then once you heat up aluminium then it will burn as well," he told AAP.

"We may end up having to keep a fire engine there all night."

One person has suffered burns and been taken to hospital, the spokesman added.

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Russia develops new long-range missile

RUSSIA is developing a new intercontinental ballistic missile, the military has announced, in an apparent attempt to remind the United States of Moscow's rocket capacities.

Revealing the existence of the project for the first time, rocket forces commander General Sergei Karakayev said that several test launches of prototypes had already taken place and the work was on the "right path", Russian state media said on Friday.

Karakayev said the latest test was on October 24 at the Kapustin Yar firing range in the Astrakhan region of southern Russia.

He appeared to link the solid-fuel missile's development to controversial US plans to install missile defence systems in central Europe which have long angered Moscow.

"The solid fuel missile will allow us to realise possibilities like the creation of a high-precision strategic missile with a non-nuclear warhead with practically global range," Karakayev was quoted as saying by the state RIA Novosti news agency.

He said that the new 100-tonne missile would be able to overcome any existing missile defence system.

Karakayev added the missile would also be effective in combating any future missile defence system that the United States could install in space.

He said that the missile would ultimately replace Russia's new generation of intercontinental missiles the Yars and Topol-M.

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Hong Kong stocks end 0.71% higher

HONG Kong shares have risen 0.71 per cent to a 16-month high following another improvement in Chinese manufacturing activity and on hopes for fresh policies to boost the mainland economy.

The benchmark Hang Seng Index on Friday added 160.40 points to close at 22,605.98 on turnover of $HK72.35 billion ($A8.90 billion). The index has rallied 16 per cent since the beginning of October and is at its highest since August 1 last year.

HSBC said China's manufacturing activity hit a 14-month high this month, another sign the world's No.2 economy is picking up steam.

The bank's preliminary purchasing managers' index (PMI) hit 50.9, up from a final 50.5 in November when the figure returned to growth after 12 consecutive months of contraction.

Anything above 50 indicates expansion while a figure below signals contraction. The December reading is the highest since October last year.

Traders were also buoyed by expectations legislators in Beijing will hold a key annual meeting this weekend that will lay out major economic policies and goals for the next year.

"The two positive factors (for the Hong Kong market) - China's economic recovery and continued liquidity flow into Hong Kong - remain intact," said SHK Financial strategist Daniel So.

And South China Research said that with recovery under way in China, more easing in the United States and a brighter outlook for Europe "we envisage that the Hong Kong stock market will rally to a high of 26,000 points... in the coming year".

China Life rose 2.3 per cent to $HK24.05 and Ping An rallied 3.5 per cent to $HK62.95, but Longyuan Power dived 5.4 per cent to $HK5.23 after the wind-farm operator announced a share placement to raise $HK2.91 billion.

Chinese shares closed up more than four per cent in their biggest single-day rise this year. The benchmark Shanghai Composite Index soared 4.32 per cent, or 89.15 points, to 2,150.63 on turnover of 117.7 billion yuan ($A17.94 billion).

"The market is gaining momentum on expectations that the upcoming Central Economic Work Conference may release an official target for 2013 GDP growth and offer clues on urbanisation," Tebon Securities analyst Huang Cendong said, according to Dow Jones Newswires.

Financial-related stocks led the gains. Soochow Securities surged by its 10 per cent daily limit to 7.36 yuan, while Bank of Nanjing also rose 10 per cent to 9.13 yuan.

And among cement producers Shaanxi Qinling Cement jumped 10 per cent to 5.87 yuan, Gansu Qilianshan Cement rose 5.60 per cent to 10.18 yuan and Anhui Conch gained 4.69 per cent to 18.76 yuan.

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Inquest witness recants lurid statement

A PERTH coroner has lifted a suppression order on the identity of a key witness to a murder 12 years ago after she recanted her story.

Natasha Tracy-Ann Kendrick, whose name had been previously suppressed for legal reasons, said in a November 2011 statement to West Australian police that she saw the bloodied and strangled body of Sarah McMahon, who has been missing since November 8, 2000.

Ms Kendrick originally told police she was called to a house in the northern Perth suburb of Marangaroo by her friend Gareth Allen, who said his trucking company co-worker and part-time housemate Donald Morey had killed a girl at the property and help was needed cleaning up.

She said in her statement that she and Mr Allen's wife, Marta Margaret Allen, had cleaned up after seeing Ms McMahon's naked body on Morey's bed, with rope looped around her neck and congealed blood on her face, and also saw the body being removed from the house, wrapped in Morey's quilt and placed in Mr Allen's ute.

But testifying on Thursday at an inquest into Ms McMahon's disappearance, Ms Kendrick denied any knowledge or involvement in the matter, saying she was "messed up" on drugs when she made the statement to police.

"I don't remember seeing any body," she told Perth's Coroner's Court.

"I didn't see any girl - I would remember.

"I didn't even go there as far as I know.

"I don't know what happened to Sarah McMahon."

Ms Kendrick, who said she had a terminal disease, told the court her illness and the drugs made her "really mentally confused".

And while her statement to police bore her signature, the key content was incorrect, she said.

In a recording of a telephone conversation with her brother that was played to the court, Ms Kendrick said she'd done the right thing in making the statement to police.

"Someone's got to do something - this is wrong," she said in the recording.

"I admitted my part in it. I feel good about it.

"I'm not going to go to my grave thinking, f***, if only that one statement might have helped and I hadn't done it."

After her brother asked her who did it and she replied, "Don Morey", she added, "He's a serial killer. He's done it over east".

While she said to her brother in the recording, "I've even signed a statement", she told the court, "This is not my statement".

"I was rambling a lot and on drugs," she said of the conversation with her brother.

"Obviously that's me and I was more messed up than I thought."

She also told her brother she was concerned about threats to her son.

On the final day of the inquest on Friday, Morey is scheduled to give evidence.

He is serving 13 years for the attempted murder of a Perth prostitute in 2004.

At the opening of the inquest, coroner Alastair Hope was told that police had long suspected the involvement of 57-year-old Morey in Ms McMahon's disappearance.

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Japan scrambles jets in disputed airspace

JAPAN scrambled eight fighter jets after a Chinese state-owned plane breached its airspace for the first time, over islands at the centre of a dispute between Tokyo and Beijing.

It was the first incursion by a Chinese state aircraft into Japanese airspace anywhere since the country's military began monitoring in 1958, the defence ministry said.

The move on Thursday marks a ramping-up of what observers suggest is a Chinese campaign to create a "new normal" - where its forces come and go as they please around islands which Beijing calls the Diaoyus, but Tokyo controls as the Senkakus.

It also comes as ceremonies mark the 75th anniversary of the start of the Nanjing Massacre, when Japanese Imperial Army troops embarked on an orgy of violence and killing in the then-Chinese capital.

F-15 jets were mobilised after a Chinese Maritime Surveillance aircraft ventured over the islands just after 11am (1300 AEDT), Chief Cabinet Secretary Osamu Fujimura told reporters.

"It was a fixed-wing Y-12 aeroplane belonging to the Chinese State Oceanic Administration. We confirmed that this aeroplane flew in our country's airspace," he said.

"It is extremely regrettable. We will continue to resolutely deal with any act violating our country's sovereignty, in accordance with domestic laws and regulations."

The Y-12 is a twin-turboprop.

Japan mobilised eight F-15 jets and an E2C early-warning aircraft, the Asahi Shimbun reported, citing a defence ministry source. But the incident appeared to have passed off without any direct confrontation.

In Beijing, China's foreign ministry termed the flight as normal.

"China's maritime surveillance plane flying over the Diaoyu islands is completely normal," said spokesman Hong Lei.

"China requires the Japanese side to stop illegal activities in the waters and airspace of the Diaoyu islands," Hong said, adding they were "China's inherent territory since ancient times".

The coastguard said its regular patrol had spotted the plane.

"At about 11.06am today, a patrol boat from the Japan Coast Guard confirmed the flight of a fixed-wing aeroplane, which belongs to the Chinese Oceanic Administration, in our country's airspace around Uotsuri Island. It was confirmed at a point about 15 kilometres south of Uotsuri," said a statement.

"The patrol boat immediately informed the fixed-wing aircraft: 'Fly without intruding into our country's airspace'. It replied to the effect that 'this is China's airspace'."

The State Oceanic Administration is part of the Ministry of Land and Resources. Its roles include law enforcement in Chinese waters.

Chinese government ships have moved in and out of waters around the islands for more than two months, but there have been no reports of any airborne action.

Four maritime surveillance vessels were logged there earlier in the day, the coast guard said, adding it had ordered them to leave.

Such confrontations have become commonplace since Japan nationalised the East China Sea islands in September, a move it insisted amounted to nothing more than a change of ownership of what was already Japanese territory.

But Beijing reacted with fury, with observers saying the riots that erupted across China had at least tacit backing from the Communist Party government.

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Ex-Thai PM Abhisit charged with murder

Ex-Thai premier Abhisit Vejjajiva is set to be charged over the deaths of 90 protesters in 2010. Source: AAP

FORMER Thai prime minister Abhisit Vejjajiva has been charged with murder, his party says, over a civilian's death during a crackdown on anti-government rallies two years ago.

Abhisit and his then-deputy Suthep Thaugsuban were formally charged on Thursday at Bangkok's Department of Special Investigation (DSI), making them the first officials to face a court over Thailand's worst political violence in decades.

"The DSI has charged Abhisit and Suthep on section 288, which is murder. They both denied the charge," senior Democrat Party lawmaker Thavorn Senniem told AFP.

Hundreds of riot police flanked the building, as about 20 supporters carrying roses and dozens of protesters holding pictures of those killed in the unrest watched the former leader arrive.

About 90 people died and nearly 1900 were wounded in a series of street clashes between "Red Shirt" demonstrators and security forces, which culminated in a deadly army operation in May 2010 to break up the protest.

The charge against Abhisit, who was prime minister at the time, relates to the fatal shooting of taxi driver Phan Kamkong.

DSI chief Tarit Pengdith announced the move last Thursday and said it was prompted by a court's ruling in September that Phan was shot by troops - the first completed inquest into the bloodshed.

Abhisit dismissed the case against him as "political" last week, saying he had no choice but to take tough action.

He said he would accept trial rather than "bargain" over a proposal by his political rivals in government for a wide-ranging amnesty plan that many believe could allow the return of the Reds' hero, ousted former premier Thaksin Shinawatra.

But experts believe British-born Abhisit is unlikely to face jail because of his close ties to the Thai establishment.

A separate terrorism case against 24 Red Shirt leaders, including five current MPs, for their part in the rallies was again postponed on Thursday after two witnesses failed to turn up.

The Red Shirts were demanding immediate elections in their 2010 protest.

They accused Abhisit's government of being undemocratic because it took office in 2008 through a parliamentary vote after a court stripped Thaksin's allies of power.

Polls in 2011 brought Thaksin's Red Shirt-backed Puea Thai party to power with his sister Yingluck as premier, sweeping Abhisit into opposition.

Support from the Thai elite means Abhisit is "unlikely" to go to prison, said Thitinan Pongsudhirak of Chulalongkorn University, adding that the former premier "has a sense of political invincibility".

He told AFP that Abhisit's arraignment was part of a "political tit-for-tat", with prosecutions against both sides, but said it still could deter the use of force against demonstrators in the future.

"It is a very important charge, because it means that the sense of impunity is being challenged," he told AFP.

The DSI said earlier on Thursday that after hearing the charges Abhisit and Suthep would be released without bail because they were prominent figures.

Tarit told reporters at DSI headquarters that it was "very awkward" for him to file the charges against the pair because of their position in society and since he himself had served on the official body that oversaw the crackdown in 2010.

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New party? Ask my wife, Palmer says

MINING magnate Clive Palmer says only his wife knows whether he'll found his own political party.

Mr Palmer suggested more than two weeks ago he was considering establishing a United Australia Party but hasn't made any further announcements since then.

The former LNP life member, who has publicly fallen out with Queensland Premier Campbell Newman and Deputy Premier Jeff Seeney, couldn't be drawn on his intentions on Thursday.

"If I started a party that would depend on what my wife said. I'm the boss of our family but I've got her permission to say so," Mr Palmer told reporters on the Gold Coast.

"I'm totally under her control so you'd be best to have a press conference with her to find out what I'm doing.

"My wife is a difficult person. Takes her a while to be convinced on things but sometimes she just makes a decision instantly.

"When she does I have to follow."

LNP defectors Alex Douglas and Carl Judge have both been linked to Mr Palmer's proposed party, with Dr Douglas expressing an interest to join if it's founded.

Mr Palmer refused to be drawn on whether he'd spoken to either MP about the party but did reiterate his support for their decisions to leave the Queensland government.

"One of the rarest things in politics is political courage, the ability to do something, stand up and go against the trend," he said.

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