By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Most Asian stocks rose Wednesday in
choppy trading, with Chinese equities fueled by earnings
expectations and strong foreign-direct-investment inflows, while
Australian miners gained after some upbeat quarterly production
reports.
The Shanghai Composite rose 0.2%, Hong Kong's Hang Seng Index
climbed 0.6%, Australia's S&P/ASX 200 added 0.1%, and South
Korea's Kospi gained 0.8%, with all of them reversing early
losses.
Japan's Nikkei Stock Average gave up 0.6% after ending at a
seven-week high Tuesday, with an overnight drop on Wall Street and
caution ahead of Federal Reserve Chairman Ben Bernanke's
congressional testimony weighing on the market.
"While we don't expect Bernanke to say anything dramatically
different from last week, speeches by policy makers are organic,
and under tough grilling from Congress, Bernanke could reveal more
than he otherwise wanted," said BK Asset Management managing
director Kathy Lien.
The Fed chairman's two days of testimony, starting Wednesday,
comes after global equity markets got a boost on his remarks last
week that the U.S. central bank was in no hurry to raise interest
rates.
U.S. stocks fell Tuesday, with Coca-Cola Co. (KO) and Goldman
Sachs Group Inc. (GS) losing ground after their quarterly results,
and as investors considered Kansas City Fed President Esther
George's comment that the Federal Reserve should pare its bond
purchases sooner rather than later.
The gains in Hong Kong and Shanghai also followed official data
showing foreign-direct-investment flows into China jumped more than
20% in June.
Sentiment was likewise aided after the Xinhua news service
reported that profit at state-owned companies outside the financial
sector rose 7% in the first half of the year, accelerating from a
6.5% increase in the first five months of 2013.
Meanwhile, China's Ministry of Land and Resources said
separately that land prices were expected to rise further in the
current quarter, according to a Reuters report.
Chinese coal miners posted strong gains after sharp losses over
the past month, with China Shenhua Energy Co. (CSUAY) soaring 6.3%,
and China Coal Energy Co. (CCOZY) rising 4.3% in Hong Kong; in
Shanghai, their shares climbed 1.9% and 1.8%, respectively.
Datang International Power Generation Co. rose 2.1% in Hong Kong
and 3.7% in Shanghai after saying it expects its profit to jump
70%-80% in the first half of 2013 from the year-earlier period.
Australian miners were among the region's notable stock gainers
Tuesday, with BHP Billiton Ltd. (BHP) climbing 2.1% after its
iron-ore production hit a record high in the previous financial
year. The diversified resources firm also produced more oil and gas
in the year ended June 30.
Fellow miner Rio Tinto Ltd. (RIO) rose 1.7% on top of its 1.4%
advance Tuesday after reporting its own iron-ore production hit a
record level in the second quarter.
Shares of surfwear maker Billabong International Ltd. (BLLAY)
spiked 38% on news the company has secured a private-equity loan
and was replacing its chief executive.
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