By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Japanese stocks shot higher Friday,
as overnight gains on Wall Street and a weakened yen combined with
upbeat industrial-production data to lift sentiment, and with other
Asian markets mostly rising.
Japan's Nikkei Stock Average added 2% on top of Thursday's 3%
rally, on course to record a gain of nearly 30% in the first half
of 2013. The broader Topix jumped 2.3%, as the U.S. dollar (USDJPY)
climbed back well above the Yen98-handle, with analysts eyeing
further weakness.
A third straight day of gains for the Dow Jones Industrial
Average (DJI) on Thursday amid fading fears the Federal Reserve
would cut its bond purchases set the tone for a further advance in
Asian markets Friday.
"Yen volatility has been hard to handle, but after a big
washout, a clearer signal from the [U.S. Federal Reserve], and
evidence of declining volatility, there is a [case] for fresh short
positions," said Nomura strategist Jens Nordvig.
Data released Friday painted a mostly strong picture of economic
conditions in Japan, providing a further lift. Industrial output
for May saw a particularly robust gain, rising 2% to trounce
expectations for a 0.2% improvement.
Elsewhere, South Korea's Kospi climbed 1% after jumping 2.9% the
previous day, although Australia's S&P/ASX 200 slipped
0.1%.
Among Tokyo movers, Japan Tobacco Inc. (JAPAF) advanced 3.4%,
steel maker JFE Holdings Inc. (5411.TO) climbed 3.7%, Sumitomo
Mitsui Trust Holdings Inc. (SMFJY) added 4.7% and real-estate major
Mitsui Fudosan Co. (8801.TO) gained 3.5% in a rally that touched
most sectors.
Shares of Renesas Electronics Corp. (RNECY) jumped 5.5%, after
the chip maker said late Thursday it would withdraw from most of
its loss-making mobile operations, according to Kyodo News.
In Seoul, auto makers and financial stocks advanced, with
Hyundai Motor Co. (HYMTF) gaining 2.5%, and Shinhan Financial Group
Co. (SHG) rising 1.6%.
In Sydney, some banks continued their advance, although mining
stocks broadly retreated.
Shares of Australia & New Zealand Banking Group (ANZBY) and
Westpac Banking Corp. (WBK) were each up 0.8%, but BHP Billiton
Ltd. (BHP) fell 1.2%, and gold miner Newcrest Mining Ltd. (NCMGY)
dropped 2.6%.
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