By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Asian markets rose Wednesday after an
improved economic outlook clinched a fourth day of improvement for
U.S. equities, although gains narrowed after Chinese data showed
exports unexpectedly declined.
Australia's S&P/ASX 200 rose 0.9%, Hong Kong's Hang Seng
Index added 0.3%, and the Shanghai Composite was up 0.2%, with each
paring early gains after the Chinese trade data fell short of
estimates.
China reported a 3.1% year-on-year drop in June exports and a
0.7% contraction in imports, against expectations of an increase in
both. The data added to worries about the nation's economic
outlook.
Japan's Nikkei Stock Average rose 0.1%, but South Korea's Kospi
eased 0.2%, reflecting caution ahead of Thursday's monetary policy
decisions in both countries. The two benchmarks were also subject
to choppy trading after rising on Tuesday, with the Nikkei Average,
having ended at a six-week high.
U.S. stocks extended their rally Tuesday on an improving
economic outlook, pushing the Standard & Poor's 500 Index (SPX)
closer toward its all-time high, with commodity prices also booking
gains overnight.
"What is fueling the optimism is the confession session of the
last six weeks ... which has seen massive earnings downgrades,"
said IG Markets strategist Evan Lucas. "We know from the data dumps
out of the U.S. over the last three months that earnings aren't
going to be low."
Gains for Chinese banks underpinned the advance in Hong Kong,
while the property sector supported the mainland Chinese stock
markets.
The Hong Kong-traded shares of China Construction Bank Corp.
(CICHY) and Industrial & Commercial Bank of China Ltd. (IDCBY)
rose 1.3% and 1.1%, respectively, while Poly Real Estate Group Co.
advanced 1.1% in Shanghai.
Several energy shares gained as U.S. benchmark oil prices ended
at their best level in 14 months. Following those gains,
Australia's Origin Energy Ltd. (ORG.AU) climbed 1.4%, and Woodside
Petroleum Ltd. (WOPEY) rose 0.5% in Sydney, while PetroChina Co.
(PTR) added 0.5% in Hong Kong.
Australian miners rose after aluminum producer Alcoa Inc. (AA)
played down concerns about a slowdown in China, and as gold prices
rose for a second day.
BHP Billiton Ltd. (BHP) rose 1.4%, Rio Tinto Ltd. (RIO) gained
1.3%, and Alumina Ltd. (AWC) rallied 3.6%.
In Tokyo, meanwhile, some technology shares retreated after
recent advances, with Trend Micro Inc. (TMICY) losing 1.8%, and
Toshiba Corp. (TOSYY) shedding 1.4%.
Gains for consumer and retail stocks supported the market,
however, with Suntory Beverage & Food Ltd. rising 2.4%, and
Asahi Group Holdings Ltd. (ASBRY) climbing 1.8%.
Shares of retailer Aeon Co. (AONNY) gained 1.6% after reporting
an increase in its quarterly profits.
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