By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) -- Asia stocks edged higher on Tuesday,
with Tokyo-traded shares firm ahead of the conclusion of a two-day
meeting at the Bank of Japan.
Japan's Nikkei Stock Average rose 0.3%, South Korea's Kospi
traded up 0.1%, and Australia's S&P/ASX 200 index advanced
0.5%.
The Bank of Japan is slated to wrap up its two-day policy
meeting Tuesday, and markets are expecting the central bank to
raise its inflation target, announce more asset purchases and
outline closer cooperation with the government.
"We expect it to adopt a 2% inflation target in a joint
statement with the government and announce an increase in the size
of asset-purchase program by 10 trillion yen ($128 billion), with
the purchase program deadline extended to mid-2014 from end-2013,"
said strategists at Barclays Capital.
"As a less likely scenario, we think it is possible that the
Bank of Japan announces an open-ended bond buying program," the
strategists said.
Japanese stocks have already rallied substantially on
expectations of aggressive easing, which has worked to depress the
yen. The dollar (USDJPY) bought Yen89.53 Tuesday morning in Asia,
off from recent highs but still around 13% above where it traded
three months ago.
Corporate news generated some buying in the Japanese market on
Tuesday, as Sony Corp. (SNE) rallied 3.2% after reports that the
firm will offer a new version of its Xperia tablet computer in
Japan in a few months time.
Separately, the Nikkei reported that the firm has begun
supplying a smaller image sensor for smartphone cameras, starting
with a model for release this spring.
Casio Computer Co. (CSIOY) climbed 2.2% after an upgrade to
neutral from underperform at Mizuho Securities, according to
Bloomberg news.
With benchmark U.S. crude-oil futures holding above the
$95-a-barrel level, energy names also gained ground in Tokyo, with
Japan Petroleum Exploration Co. (1662.TO) up 1.4% and Inpex Corp.
(IPXHY) gaining 1.3%.
Australian energy firms also advanced, with sector giant
Woodside Petroleum Ltd. (WOPEF) adding 0.7% and Beach Energy Ltd.
(BCHEY) climbing 1.3%.
MacMahon Holdings Ltd. (MAH.AU) was among the top gainers in
Sydney, rising 9.8% after getting its largest-ever mining deal, a
$1.9 billion contract to expand a Fortescue Metals Group Ltd. [
(FSUMY) mine.
Shares of Fortescue rose 2%.
In South Korea, Samsung Electronics Co. (SSNLF) gained 0.5% to
pare recent losses.
U .S. markets were closed for a holiday on Monday but are slated
to reopen Tuesday, with earnings set to dominate investors'
focus.
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