By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Australian stocks rose for a sixth
straight trading day, and Japanese shares resumed their advance
after a three-day weekend on Tuesday, as strong results from
Citigroup Inc. helped lift key U.S. indexes to record highs.
Japan's Nikkei Stock Average rose 0.8%, after also climbing in
the two sessions prior to Monday's holiday.
Australia's S&P/ASX 200 gained 0.3%, but South Korea's Kospi
slipped 0.1%.
The S&P 500 (SPX) and the Dow Jones Industrial Average
(DJI)each set fresh record closing highs Tuesday after Citigroup
posted better-than-expected quarterly results, despite a weak U.S.
retail sales report.
"Earnings season is taking on renewed interest as companies
which have rallied strongly over the past 13 months now must prove
that their recent surge is justified by earnings delivery," said
Perpetual head of investment market research Matthew Sherwood.
"This will be no easy feat as U.S. cost savings are now
exhausted and earnings growth is now dependant on revenue growth
and a sub-trend U.S. economy," Sherwood said.
Exporters were broadly higher in Tokyo as the U.S. dollar
(USDJPY) weakened from the levels seen around Friday afternoon to
trade around the Yen100 mark.
Canon Inc. (CAJ) advanced 2.8%, and Nissan Motor Co. (NSANY)
added 1.5%.
Fuji Heavy Industries Ltd. (FUJHY) added 1.7% after the Nikkei
newspaper reported over the weekend that the Subaru-brand vehicle
maker is expected to report a record quarterly operating
profit.
Miners were mostly higher in Sydney on the positive lead from
Wall Street, although Rio Tinto Ltd. (RIO) retreated in choppy
trading ahead of the company's quarterly production report,
expected to show a hit from weather in Pilbara region.
"Attitudes toward resource stocks will be set by Rio's
production report. Investors will be expecting an improvement of
5%-6% in Rio's second-quarter iron-ore production to offset
concerns over potential future price weakness," said CMC Markets
chief market analyst Ric Spooner.
Shares of BHP Billiton Ltd. (BHP) gained 0.5%, and Fortescue
Metals Group Ltd. (FSUMY) advanced 1.4%, while Rio traded
fractionally lower.
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