By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Asian stock markets swung between
modest gains and losses Wednesday, with shares of heavyweight
Commonwealth Bank of Australia dropping in Sydney, and automobile
firms gaining in Shanghai.
China's Shanghai Composite and Japan's Nikkei Stock Average both
traded flat after moving in both directions.
Australia's S&P/ASX 200 eased 0.1%, and South Korea's Kospi
gained 0.1% in similarly choppy trading.
The morning trading session in Hong Kong was canceled because of
a storm.
The stock performance in Asia followed a higher finish on Wall
Street Tuesday, where U.S. markets got support from billionaire
investor Carl Icahn's disclosure that he held a sizeable stake in
Apple Inc. (AAPL), as well as data showing U.S. retail sales grew
for a third straight month in July.
"A solid result by Commonwealth Bank and a firm lead from U.S.
markets will set the early tone in this morning's market. However,
investors will be keen to assess whether CBA's result and dividend
payment will be good enough to prevent some short-term
profit-taking," said CMC Markets chief market analyst Ric
Spooner.
In Sydney, shares of Commonwealth Bank (CBAUY) fell 1%, even as
the lender reported a record profit for the year ended June 30 and
increased its dividend payout.
Other banks gained, however, after the strong results. National
Australia Bank Ltd. (NABZY) rose 0.8%, while Westpac Banking Corp.
(WBK) advanced 0.9%.
Mining major Rio Tinto Ltd. (RIO) fell 1.1% as the stock traded
without rights to a dividend.
Meanwhile, gains in automobile shares helped support the
Shanghai market amid hopes policy makers would support the economy.
SAIC Motor Corp. jumped 4.2%, and Anhui Jianghuai Automobile Co.
climbed 1.9%.
The rise in SAIC shares came after news that Huayu Automotive
Systems Co., of which the automobile major owns 60%, had agreed to
buy Visteon Corp.'s (VC) 50% stake in their joint venture for $1.25
billion in cash.
In Tokyo, meanwhile, steel and automobile shares advanced as the
U.S. dollar (USDJPY) rose above the Yen98-level.
"After a long period of underperformance, [the dollar's rate
against the yen] seems to be back in its stride and rallied through
Yen98 to a high of Yen98.34," said IG Markets strategist Stan
Shamu.
"Perhaps reports that Prime Minister [Shinzo] Abe is considering
lowering corporate-tax rates to counter the sales-tax hike will
continue to gain momentum and underpin the Nikkei [Stock Average's]
rally," Shamu said.
JFE Holdings Inc. (5411.TO) rose 2.7%, and Kobe Steel Ltd.
(KBSTY) added 3.1%, while Mazda Motor Corp. (MZDAY) advanced
1.4%.
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