Asia Markets Mostly Rise, But Japan Snaps Streak
Most Asian stocks traded higher Tuesday in the footsteps of global equity gains on optimism the U.S. fiscal cliff will be averted. However, Japanese shares ended lower on mild profit-taking pressure after a recent string of strong finishes.
A downgrade of France’s credit rating before Asian markets opened Tuesday also held buyers back, shifting focus to the euro zone’s growth and debt problems.
Hong Kong’s Hang Seng Index added 0.7%, Australia’s S&P/ASX 200 and South Korea’s Kospi each climbed 0.6%, and Taiwan’s Taiex gained 0.2%.
China’s Shanghai Composite Index fell 0.5% after a higher opening.
In Japan, the Nikkei Stock Average slipped 0.1% to break out of a winning streak over the last four trading days.
The loss came in the wake of the Bank of Japan’s decision to stand pat on its monetary policy. The move was widely expected, but analysts also forecast fresh easing moves in the coming months amid intense political pressure on the central bank.
“The pause will be short-lived. With an upcoming general election pushing political pressures through the roof and considerable uncertainty surrounding its baseline economic-recovery scenario, the [Bank of Japan] will likely move again in December,” said Izumi Devalier, an economist at HSBC.
“Further deterioration of the country’s economic outlook may also nudge the [Bank of Japan] towards more easing,” Devalier added.
Major movers
Japan’s biggest names in the tech and auto sectors — which had fueled much of Tokyo’s recent advance — moved mostly lower during Tuesday’s morning session.
Among the major exporters losing ground, Advantest Corp. fell 2.4%, Honda Motor Co. dropped 1%, and Mazda Motor Corp. retreated 1.7%.
Panasonic Corp. gave up 3.8%, suffering an addition weight from a target-price cut by Deutsche Bank
Nintendo Co. fell 2.6% as its recently launched Wii U videogame console received mixed reviews.
Outside of the tech sector, Daiwa Securities Group Inc. dropped 1.4% after its shares hit a nine-month high Monday.
On the upside, Nippon Yusen K.K. rose 0.6%, while Mitsui O.S.K. Lines Ltd. jumped 3.6%, recovering further from a Moody’s Investors Service debt downgrade earlier in the month.
Strength in other markets came after Wall Street scored its best session in more than two months, helped by upbeat housing data and increasing confidence that a U.S. budget deal would be reached to avoid the so-called “fiscal cliff.”
European stocks likewise saw a strong advance, with many of the region’s main indexes closing more than 2% higher.
The positive sentiment spilled over into most of Asia, even after Moody’s cut France’s coveted triple-A debt rating by a notch before Asian markets opened.
In Seoul, Samsung Electronics Co. gained 2.4%, SK Hynix Inc. rose 0.6%, and LG Display Co. jumped 4%.
Over in Sydney, miners helped lead the advance, with Rio Tinto Ltd. adding 1.4%, Fortescue Metals Group Ltd. leaping 4.2%, and uranium extractor Paladin Energy Ltd. soaring 9%.
Gains in Hong Kong were led by the banking heavyweight HSBC Holdings PLC which rose 1.3% on positive global cues.
Energy shares gained across much of the region after benchmark crude-oil futures closed near $90 a barrel Monday on the New York Mercantile Exchange, although the futures came off those highs in electronic trading in Asia. In Tokyo, Japan Petroleum Exploration Co. rose 1.3%, and Inpex Corp. gained 0.6%.
Origin Energy Ltd. advanced 3.2% in Sydney, and Cnooc Ltd. climbed 1.6% in Hong Kong.
Over in Singapore, shares of Olam International Ltd. went on a trading halt at the company’s request after broker Muddy Waters PLC questioned the agricultural-product trader’s accounting practices, leading to a slump in the company’s U.S. traded shares Monday.
The company said it was “dismayed at the nature and lack of substance of these assertions” and that it awaits the detailed report to address the allegations.
Marketwatch
