By Michael Kitchen, MarketWatch
LOS ANGELES (MarketWatch) -- Stock markets in Hong Kong and
Seoul saw modest gains against a mostly weaker picture for other
Asian bourses Thursday, with energy stocks offering a bright spot
after an increase for oil futures.
Hong Kong's Hang Seng Index rose 0.2% in the first half-hour of
trade, while South Korea's Kospi improved by 0.4%.
On the other hand, Australia's S&P/ASX 200 was flat, and
Japan's Nikkei Stock Average lost 0.4%, while the Shanghai
Composite was the top decliner among the Asian majors, losing
0.6%.
After New York-traded oil futures scored their first gain in
three sessions on Wednesday, energy shares saw the broadest buying
in Asia.
In Tokyo, Inpex Corp. (IPXHY) rose 2.2%, while Japan Petroleum
Exploration Co. (1662.TO) added 1.1%, while in Sydney, Oil Search
Ltd. (OSH.AU) and Woodside Petroleum Ltd. (WOPEF) tacked on 0.4%
each.
Likewise, PetroChina Co. (PTR) rose 1.1% in Hong Kong and 0.3%
in Shanghai after the stock was hit in recent sessions by news of
an investigation into company executives.
Hong Kong-listed clothing and apparel exporters also saw some
strength after overnight advances for the Dow Jones Industrial
Average (DJI) and S&P 500 (SPX), as well as an improvement for
European stocks.
Among them, Samsonite International SA (SMSOF) traded 1% higher,
Giordano International Ltd. (0709.HK) rose 1.3%, and Esprit
Holdings Ltd. (ESHDF) added 2.2% after posting a fiscal-year loss
earlier in the week but also tipping a swing to profit next
year.
BYD Co. (002594.SZ) added 3.9%, with Dow Jones Newswires citing
a report that the firm had the capability to produce a
high-performance electric sports car, while on the downside, shares
of FIH Moblie Ltd. -- (FXCNF) formerly known as Foxconn -- lost
2.6%, tracking losses for key client Apple Inc. (AAPL) in the
U.S.
Over in Shanghai, real estate traded weaker, with Poly Real
Estate Group Co. down 2.3%, and Gemdale Corp. off by 1.8%.
In Japan, Mitsubishi Motors Corp. shares (MMTOY) were slapped
down 7% after the Nikkei reported it was considering a public share
offering, while Sharp Corp. (SHCAF) fell 5.7% on a Yomiuri Shimbun
report that it too was seeking new share offering, said to total up
to $2 billion.
Japan retailers traded mostly lower as a separate Yomiuri
Shimbun report said Prime Minister Shinzo Abe had decided to go
ahead with a planned sales-tax hike, though a senior official later
said no final decision had been made.
Among the major retail names, Takashimaya Co. (TKSHF) fell 1.6%,
J. Front Retailing Co. lost 1%, and Aeon Co. (AONNF) dropped 0.9%,
though Fast Retailing Co. (FRCOY) managed to rise 1.7%.
Thursday's weakness followed some solid gains for Tokyo equities
earlier in the week. Kim Eng Securities analyst Andrew Sullivan
wrote that data on foreign transactions for the previous week
showed some offshore support for shares.
"Key is big selling by foreigners of Japanese bonds and a
similarly big rotation into Japanese stocks. [This is] likely to
continue following the winning of the Olympic bid and the
expectation of sales tax next year, accompanied with a large
stimulus plan," he wrote Thursday.
Over in Australia, the market held ground after hitting a
multiyear high in the previous session, even after weak employment
data released in the morning.
Among the major movers, News Corp. [ (NWS) jumped 3.7% after Dow
Jones Newswires reported Southeastern Asset Management Inc. had
taken an 11.9% voting stake in the company, making it the largest
shareholder behind Chairman Rupert Murdoch and his family
trust.
News Corp. owns both Dow Jones Newswires and MarketWatch, the
publisher of this report.
In Korea, meanwhile, Samsung Electronics Co. (SSNLF) added 1.1%
after archrival Apple's weakness in U.S. trading Wednesday.
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