By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) -- Most major Asia stock markets seesawed
in Monday trading, though Japanese equities outperformed to hit a
seven-month high as the yen weakened further against major
rivals.
Japan's Nikkei Stock Average climbed 0.8% to a level not seen
since late April as investors returned from a three-day
weekend.
Australia's S&P/ASX 200 index advanced 0.2%, while South
Korea's Kospi edged down 0.3%.
Chinese trading started the week on a muted note, with Hong
Kong's Hang Seng Index down 0.1%, and the Shanghai Composite index
lower by 0.3%.
"Traders have some doubts about the significance of the strong
rally in U.S. markets on Friday. ... Turnover in U.S. markets on
Friday was low in a holiday-affected session," said Ric Spooner,
chief market analyst at CMC Markets.
"In these circumstances, many traders prefer a cautious stance,
waiting to see if the market can hold these gains once trading
returns to normal this week," Spooner said.
U.S. stocks had ended with strong gains in holiday-thinned
trading Friday, as the S&P 500 (SPX) added 1.3%, with the moves
sealing a strong weekly performance on Wall Street.
Signs that U.S. retail sales could gather momentum going into
the holiday season and optimism that the global economic backdrop
was improving buoyed the U.S. markets at the week's end.
Japanese stock gains followed a 3.8% advance for the Nikkei
Stock Average over the four trading days last week, as the yen
continued to weaken. The dollar advanced 1.3% against the yen last
week, with gains made so far in November at 3.3%.
On Monday, minutes of the Japanese central bank's Oct. 30 policy
meeting were released just ahead of the stock-market open,
underlining the Bank of Japan's plan to "undertake further
aggressive monetary easing" as it announced an expansion to its
asset-buying program.
The central bank stood pat at a subsequent meeting last week --
minutes for which have yet to be released -- though it hinted at
more easing to come.
Japan's major exporters got a boost as the euro broke above the
107-yen level early Monday to hit a seven-month high against the
Japanese currency before later falling back to ¥106.59.
The dollar traded at ¥82.29, just down from ¥82.35
reached on Friday, and also giving up early strength.
Japanese exporters managed to retain their gains, with
euro-exposed names among the leading advancers. Canon Inc. (CAJ)
rose 1.6%, Mazda Motor Corp. (7261.TO) advanced 1.5%, and Pioneer
Corp. (6773.TO) jumped 4.1%.
Tokyo-listed car makers gained as well, with Toyota Motor Corp.
(TM) up 2.4%, Honda Motor Co. (HMC) gaining 1.6%, and Nissan Motor
Co. (NSANY) ahead by 2.5%.
On the deal front, a report Monday in the Nikkei business daily
said the three top shareholders in struggling microchip maker
Renesas Electronics Corp. (RNECY) were set to buy the firm out as
previously tipped, sending Renesas shares jumping 12.8%.
Hitachi Ltd. (HIT) and NEC Corp. (NIPNF), both among the
reported buyers of Renesas, saw their shares rise 1.1% and 0.7%,
respectively. The third buyer, Mitsubishi Electric Corp. (MIELF),
rallied 3.1%.
In Australia, Qantas Airways Ltd. (QUBSF) climbed 1.6% after an
Australian Financial Review report over the weekend said that a
group of former executives and investors had bought a stake in the
firm.
Gains for energy and material firms offered broad support for
the Australian market, with Beach Energy Ltd. (BCHEY) up 1.6%, and
gold extractor Newcrest Mining Ltd. (NCMGF)(NCMGF) advancing
1%.
In Hong Kong, investors weren't so keen on energy firms,
however, with losses for China Petroleum & Chemical Corp. (SNP)
down 1.6%, and China Shenhua Energy Co. (CSUAY) lower by 1.3%,
working to weigh on the market.
Away from energy, apparel firm Esprit Holdings Ltd. (ESHDF) lost
3.1%, while airline Cathay Pacific Airways Ltd. (CPCAY) fell 2%.
Late Friday, the Hong Kong-listed carrier said that competition has
pushed average economy-class ticket prices 4% lower compared to the
previous year, while premium traffic suffered amid challenging
global economic conditions.
Airlines listed on the Chinese mainland also weakened Monday,
with Air China Ltd. (AIRYY) down 0.9% and China Eastern Airlines
Corp. (CEA) falling 1% in Shanghai.
Losses for Samsung Electronics Inc. (SSNLF) weighed in Seoul,
with the heavily weighted electronics major trading down 1.3%.
Arch-rival Apple Inc. (AAPL) reportedly filed Friday to add six
more Samsung products to its patent infringement lawsuit against
the Korean firm.
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