Asia Stocks Rise; Tokyo Climbs After Brief Retreat

Asian stocks mostly rose Friday as investors pushed up commodity-related firms, while shares in Tokyo briefly slid into losses after the Bank of Japan refrained from announcing fresh monetary easing.

With key U.S. jobs data on tap for later in the global trading day, Australia’s S&P/ASX 200 index AU:XJO +0.94% gained 0.9% to 4,494.40 for a seventh straight session of gains.

Hong Kong’s Hang Seng Index HK:HSI +0.50% rose 0.5% to 21,012.38, South Korea’s Kospi KR:SEU +0.12% edged up 0.1% to 1,995.17 and Taiwan’s Taiex XX:Y9999 +0.11% climbed 0.1% to 7,690.65.

Mainland Chinese markets remained closed for the Golden Week holidays.

Shane Oliver, head of investment strategy at AMP Capital, said markets may struggle to extend recent gains in coming weeks, “given uncertainties regarding Spain, Greece and China.”

However, the broad upward trend for share markets is likely to remain intact, he said, due to an expected pick-up in optimism over corporate profits, given recent central-bank moves to support economic growth.

Japan’s Nikkei Stock Average JP:100000018 +0.44% , briefly dipped into losses after the Bank of Japan left the size of asset-purchase program and interest-rate target unchanged. But stocks managed to recover, sending the benchmark Average 0.4% higher to finish at 8,863.30.

While most economists had been expecting the bank to hold its policy steady after it last month expanded its asset purchases, there had been some speculation this week that the central bank would introduce new easing measures — an expectation that led to some pressure on the yen and gains for exporters.

The broad regional gains came after lower-than-expected weekly jobless claims and factory orders that exceeded forecasts.

Markets, however, also reflected caution ahead of U.S. jobs data on tap later on Friday. Economists surveyed by MarketWatch predict the U.S. economy added 110,000 jobs last month, with the unemployment rate seen ticking up to 8.2% from 8.1%.

The S&P/ASX 200 was the best performer among major benchmarks, rising 2.5% this week, while the Hang Seng Index added 0.8%. Japanese, South Korean and Taiwanese markets ended the week with modest losses.

Stock movers

Several exporters declined in Tokyo amid the yen’s strength, with Nikon Corp. JP:7731 -4.81% NINOY -2.44% dropping 4.8% and Sharp Corp. JP:6753 -2.75% SHCAF -7.11% losing 2.8%.

Automobile firms also lost ground on concern about the impact on their China sales and operations following a recent flare-up of anti-Japan sentiment on the mainland. Toyota Motor Corp. JP:7203 -1.62% TM +2.45% declined 1.6% and Nissan Motor Co. NSANY +4.96% JP:7201 -1.47% shed 1.5%.

Retail firms were among notable gainers, with heavyweight stock and apparel company Fast Retailing Co. JP:9983 +1.76% FRCOY -0.52% climbing 1.8%.

Ryohin Keikaku Co. JP:7453 +4.27% RYKKF +4.50% rallied 4.3% after a Nikkei news report that the firm expects to post a 21% increase in fiscal-year pretax profit, which would exceed its previous forecast.

But Seven & I Holdings Co. JP:3382 -4.22% SVNDY -1.13% fell 4.2% after posting a drop in second-quarter net profit and lowering its full-year targets.

Resource sector shares did well across the region, with energy shares in particular rising after crude-oil prices jumped back above the $91 a barrel level.

PetroChina Co. PTR +0.71% HK:857 +1.20% rose 1.2% in Hong Kong, Inpex Corp. IPXHY +0.13% JP:1605 +1.61% added 1.6% in Tokyo, and Santos Ltd. AU:STO +0.87% gained 0.9% in Sydney.

An advance for metal prices in New York also sent other resource firms higher. Gold miner Newcrest Mining Ltd. AU:NCM +3.12% NCMGF -1.71% rose 3.1% in Sydney and Sumitomo Metal Mining Co. JP:5713 +4.89% SMMYY 0.00% jumped 4.9% in Tokyo.

In Hong Kong, Aluminium Corp. of China Ltd. HK:2600 +3.14% ACH +2.29% advanced 3.1%, Citic Pacific Ltd. HK:267 +5.23% CTPCY -1.67% jumped 5.2% and Zijin Mining Group Co. HK:2899 +2.86% ZIJMY -0.38% rose 2.9%.

Deutsche Bank strategists named Zijin Mining as one of their top picks among firms exposed to precious metals. They upgraded gold and silver forecasts “in light of further central bank action to expand monetary conditions.”

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