By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Japanese stocks rallied on toward
five-year highs Wednesday, outperforming other Asia markets, which
also traded higher after another record finish for key U.S. equity
indexes and strong Chinese trade data.
The Nikkei Stock Average climbed 1.4% to 14,371.65 in Tokyo late
morning trade, climbing further a day after it soared 3.6% to
finish at its highest level since June 2008.
The Shanghai Composite rose 0.2%, and Hong Kong's Hang Seng
Index added 0.6%, after official data showed China posted a trade
surplus of $18.16 billion in April. Exports jumped 14.7% from a
year-earlier and imports rose 16.8%, with both exceeding
expectations.
Stocks also rallied in other markets that count China as a key
trading partner. Taiwan's Taiex gained 1.1%, Australia's
S&P/ASX 200 rose 0.8%, and South Korea's Kospi climbed
0.3%.
The advances came after the Dow Jones Industrial Average (DJI)
and the S&P 500 (SPX) ended at a record level Tuesday.
Sentiment was also aided by news from Europe, where Germany's
benchmark index ended at a record high and the Stoxx Europe 600
finished at its highest level since June 2008.
"At present, markets are driven by heightened stimulus and the
fact that economic data remain in the Goldilocks range -- weak
enough to warrant continued stimulus, but strong enough to keep
earnings expectations positive," said Matthew Sherwood, head of
investment market research at Perpetual.
Stock movers
The resource sector was a notable gainer across the region as
the jump in monthly imports underlined the strength of Chinese
demand.
PetroChina Co. (PTR) rose 1.7%, and Cnooc Ltd. (CEO) climbed
1.2% in Hong Kong, despite an overnight drop in prices of several
commodities; in Shanghai, coal miners China Shenhua Energy Co.
(CSUAY) gained 1%, and China Coal Energy Co. (CCOZY) added
0.9%.
Elsewhere, Fortescue Metals Group Ltd. (FSUMY) spiked 5.2%, and
Rio Tinto Ltd. (RIO) moved 1.8% higher in Sydney. In Tokyo, energy
producer Inpex Corp. (IPXHF) gained 1%, and trading house Marubeni
Corp. (MARUY) jumped 3.8%.
In Hong Kong, banking major HSBC Holdings PLC (HBC) jumped 1.6%
to front the market advance a day after it reported a surge in
first-quarter profits.
On the downside, Esprit Holdings Ltd. (ESPGY) dropped 4.2% after
the apparel retailer issued a profit warning.
Back in Tokyo, meanwhile, shares of Softbank Corp. (9984.TO)
advanced 3.7% after Alibaba Group Holding Ltd. -- in which the
mobile-service provider holds a stake -- said its profits nearly
tripled in the fourth quarter of 2012.
The gains followed a day after Softbank unveiled six new
smartphone models, including handsets that are compatible with
high-definition television broadcasts for mobile phones, according
to a Nikkei newspaper report.
Sharp Corp. [(SHCAY) soared 7.5% after the Nikkei newspaper
reported two banks had increased the line of credit they set up for
the company.
Some exporters also advanced on strong cues from Wall Street,
with Nissan Motor Co. (NSANY) gaining 1.8%.
Sony Corp. (SNE) climbed 2.8%, taking its year-to-date gains to
more than 85%.
But shares of Toshiba Corp. (TOSYY) tumbled 4.3% after the
Nikkei separately reported the company may have missed its
operating profit forecast for the fiscal year ended March 31.
Australian shares, which ended lower on Tuesday after the
Reserve Bank of Australia (RBA) surprised most economists with an
interest rate cut, gained as some banks and telecommunication major
Telstra Corp. recovered on the back of their dividend appeal.
"By no means is the yield trade over following yesterday's
surprise rate cut by the RBA. And with scope for the RBA to cut
rates further, we will continue to see investors forced to seek
higher returns, away from bonds and bank deposits and into stocks,"
said Rivkin Securities analyst Tim Radford.
Shares of Commonwealth Bank of Australia (CBAUY) gained 0.8%,
and Australia & New Zealand Banking Group Ltd. (ANZBY) added
1%, while Telstra (TLSYY) also climbed 0.7%.
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