By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Most Asian stocks rose Wednesday as a
higher finish overnight for U.S. equities and gold prices
encouraged buyers, and with Japanese shares rebounding after a
three-day losing streak as the yen weakened.
Stocks in Hong Kong and Shanghai dropped amid worries about the
strength of the economic recovery in China.
The advance followed a surprisingly strong increase in U.S.
housing starts and better-than-expected earnings from companies
including as Coca-Cola Co. (KO) and BlackRock Inc. (BLK) that
spurred major stock indexes on Wall Street to gains of at least
1.1% overnight.
"Following a string of gloomy global economic data and a near
meltdown in commodities, equity investors seem determined to cling
to the coattails of the American dream and are once again bouncing
to the tune of an expected continuation of monetary stimulus," said
CMC Markets sales trader Niall King.
Australia's S&P/ASX 200 gained 1.1% while South Korea's
Kospi and Taiwan's Taiex edged 0.1% higher each.
Hong Kong's Hang Seng Index fell 0.5% for its fourth straight
day of losses, and the Shanghai Composite Index eased 0.1%.
Japan's Nikkei Stock Average jumped 1.2%, as the U.S. dollar
climbed back above Yen98, and after Credit Suisse on Tuesday raised
its rating on Japanese equities to overweight.
Gains in Tokyo also took support from the International Monetary
Fund's upgrade of the country's economic growth outlook for 2013 to
1.6%, applauding Japan's aggressive new monetary easing, even as it
downgraded U.S. forecasts.
Shares of Sony Corp. (SNE) climbed 2.3%, Mizuho Financial Group
Inc. (MFG) rose 2.4% shipping firm Kawasaki Kisen Kaisha Ltd.
gained 4.3% and Mazda Motor Corp. (MZDAY) spiked 5.9% in a bounce
spread across sectors.
"Risk sentiment as suggested by U.S. stock markets is unlikely
to deteriorate sustainably. ... Any further weakening of Chinese
growth expectations may result in renewed easing expectations,"
said strategists at Crédit Agricole.
"We remain of the view that dips [in U.S. dollar versus the yen]
should be bought, as the pair is ultimately still set to move
higher," they said.
Shares of Nomura Holdings Inc. (NMR) dropped 2.3% after Italian
police froze 1.8 billion euros ($2.35 billion) in funds from a unit
of the investment bank as part of an investigation into Banca Monte
dei Paschi di Siena . The case stems from a structured-products
transaction that the Nomura unit worked on with Monte dei
Paschi.
Telecommunications firm Softbank Corp. (9984.TO) edged up 1.2%,
following heavy losses Tuesday after Dish Network Corp. (DISH)
trumped its takeover bid for U.S. firm Spring Nextel Corp.
(US-S)
Worries about China's economic momentum weighed on trading in
Hong Kong and Shanghai after the mainland's first-quarter gross
domestic product growth disappointed earlier in the week.
Shares of luxury-goods maker Prada S.p.A. (PRDSY) lost 2.3%,
while footwear major Belle International Holdings Ltd. (BELLY) gave
up 1.1%.
Among resource stocks, a few gold-linked names saw a mild
recovery after recent losses, with gold miner Newcrest Mining Ltd.
(NCMGY) climbing 0.6% as gold futures settled higher overnight. In
Hong Kong, Chow Tai Fook Jewellery Group Ltd. (CJEWY) rose
1.5%.
BHP Billiton Ltd. (BHP) fell 0.3% in Australia after reporting
that its iron-ore output increased less than expected in the fiscal
third quarter.
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