By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Japanese stocks jumped in early
trading Friday to recover some of the steep losses suffered in the
previous session, with exporters aided as the U.S. dollar climbed
above Yen101 after a slew of monthly economic data.
The Nikkei Stock Average gained 2.2% to 13,888.10 a day after it
plunged by 5.2%, while the broader Topix rose 1.4%. The gains were
steady after the sharp volatility seen recently amid concerns over
an increase in Japanese government bond yields.
The rebound kept the Nikkei Average on course for modest gains
in May -- the 10th straight month of advances -- despite steep
losses suffered over the past few days.
Elsewhere in Asia, Australia's S&P/ASX 200 gained 0.5%, and
South Korea's Kospi rose 0.4%.
The broad advances came as stocks on Wall Street rose overnight
on signs of further improvement in the U.S. housing market, while
weaker-than-expected data on first-quarter economic growth and
jobless claims raised hopes the Federal Reserve may keep its
current level of bond purchases.
"Every U.S. data point about the pace of economic growth is
being closely examined by market followers after Federal Reserve
Chairman Ben Bernanke indicated that the central bank could pare
back its stimulus efforts should the U.S. economy continue to
improve," said Perpetual head of investment-market research Matthew
Sherwood.
"The Fed needs to improve its communication with the market
about what its intentions truly are, but the stimulus is only
likely to be reduced, not reversed," he said.
In Japan, the rebound followed data showing April core consumer
prices rose 0.3% from March, although they were 0.4% lower from the
year-ago month. Industrial production during the same month rose
1.7% from a year earlier, but a survey indicated lingering
pessimism, with manufacturers tipping flat output for May and a
1.4% drop in June.
Among the notable gainers in Tokyo, Sony Corp. (SNE) jumped 3.4%
after several reports said the company has tapped Morgan Stanley
and Citigroup to help sound out options for its entertainment
business. The reports came after billionaire hedge-fund manager
Daniel Loeb called on the electronics major to spin off its
entertainment business.
Several other exporters also advanced as the U.S. dollar
(USDJPY) traded at Yen101.17 after sliding toward the Yen100 level
Thursday.
Shares of Fanuc Corp. (FANUY) jumped 4.2%, and Kyocera Corp.
(KYO) added 2.7%.
Fast Retailing Co. (FRCOY) gained 3.3% after plunging 11% in the
previous session.
Financial stocks also rebounded after recent losses, with
Sumitomo Mitsui Financial Group Inc. (SMFJY) rising 1.5%, and
Mitsubishi UFJ Financial Group Inc. (MTU) adding 0.7%.
In Sydney trade, an overnight improvement in gold prices sent
producers of the metal rallying, with Evolution Mining Ltd. (CAHPF)
leaping 5.1% and Newcrest Mining Ltd. (NCMGY) ahead by 1%.
Other mining majors also advanced, with BHP Billiton Ltd. (BHP)
rising 1.5%, Rio Tinto Ltd. (RIO) up 2.9%, and uranium extractor
Paladin Energy Ltd. (PDN.T) adding 3.6%.
The modest overnight U.S. gains also appeared to help the large
banks, as Commonwealth Bank of Australia (CBAUY) rose 0.7%, and
Macquarie Group Ltd. (MCQEF) added 1.8%.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
