By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Japanese stocks jumped Tuesday to
lead Asian markets higher, with gains spread across sectors on a
weakened yen and a report the government is considering a cut in
corporate taxes.
The Nikkei Stock Average rose 1.3%, while elsewhere in Asia,
South Korea's Kospi added 0.4%, and Australia's S&P/ASX 200
gained 0.2%.
The advance came in spite of weak overnight cues from Wall
Street, where the Dow Jones Industrial Average (DJI) and the
Standard & Poor's 500 Index (SPX) ended lower Monday, though
the Nasdaq Composite (RIXF) saw a mild gain.
"Investors seem to be weighing the positives of an improving
U.S. economy against the negatives of a weak global economy and the
potential for the [Federal Reserve] to taper its bond-purchase
program this fall," said Wells Fargo Advisors chief macro
strategist Gary Thayer.
The solid advance in Tokyo also got help from a report in the
Nikkei newspaper Tuesday that Prime Minister Shinzo Abe may propose
a reduction in corporate taxes if he decides in favor implementing
a planned increase in the consumption tax.
Among major movers, shares of Fuji Heavy Industries Ltd. (FUJHY)
climbed 3.8%, Softbank Corp. (9984.TO) added 4.7%, Japan Tobacco
Inc. (JAPAF) rose 3.5%, and Tokyo Electron Ltd. (TOELY) advanced
2.2%.
Data released earlier in the day showed Japan's core machinery
orders fell 2.7% in June, a milder decrease than expected.
In Sydney, meanwhile, shares of miners BHP Billiton Ltd. (BHP)
rose 0.4%, and Rio Tinto Ltd. (RIO) added 1%, extending recent
gains that followed recent, better-than-expected economic data from
China, a key consumer of industrial commodities.
However, shares of Stockland declined 1.4% after the developer
and real-estate investor posted a 79% drop in full-year profit.
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