By Daniel Inman
Stocks in Japan and Australia climbed Wednesday, with Sydney
edging toward a five-year high, as the threat of U.S. military
intervention in Syria appeared to diminish.
Syria said that it would stop making chemical weapons and reveal
the location of its stockpiles in an attempt to avoid a military
attack on the country.
Fears of a U.S. military strike on Syria have weighed on market
sentiment in recent weeks, but the rising possibility of a
diplomatic solution this week has contributed to substantial gains
for global markets.
An address to the nation by President Barack Obama, broadcast
early on Wednesday in Asia, also gave some markets a push. Obama
said that he had asked Congress to postpone a vote on action and
that he has asked Secretary of State John Kerry to meet with his
Russian counterpart.
The easing tension was reflected in a weaker yen, an asset that
investors flock to in times of turmoil. The dollar (USDJPY) pushed
0.8% higher against the Japanese currency Tuesday, but gave up some
of those gains by late in Asia -- last at Yen100.27 compared with
Yen100.38 late Tuesday in New York.
Rising 0.6% to 5,234.40, the S&P/ASX 200 edged closer to a
five-year high of 5,249.6 reached in mid-May, while South Korea's
Kospi rose 0.5%.
Australian stocks have been helped by a string of consistently
upbeat economic data from China, the main consumer of the country's
natural resources.
Over the weekend, China posted strong export growth for August,
which was followed by an acceleration in industrial output on
Tuesday. Both measures reinforced the case for a recovery in Asia's
largest economy, leading to gains in the region's stocks.
Signs of a recovering economy kept stocks in mainland China
higher, with the Shanghai Composite up 0.2%, though Hong Kong's
Hang Seng Index dropped 0.2%, giving up some of its gains from
earlier in the week.
The weaker yen initially supported Japanese stocks, which hit a
seven-week high early in the afternoon session, before giving up
most of its gains by the end of the day. The Nikkei finished less
than two points higher at 14,425.07, after gaining 4.1% on Monday
and Tuesday.
Construction companies, which have rallied this week after Tokyo
was selected to host the 2020 Olympic Games, pulled back. Kajima
Corp. (KAJMF) fell 3.3%, and Taisei Corp. dropped 4.6%.
Shares in companies that supply to Apple (AAPL) fell Wednesday
after the U.S. technology giant's underwhelming launch of its new
iPhone models. Murata Manufacturing Co. (6981.OK) fell 3.3% in
Tokyo and AAC Technologies Holdings (2018.HK) lost 4.2% in Hong
Kong.
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