Asia Stocks Gain After China Trade Data
Hong Kong stocks climbed Thursday after China’s December exports data far surpassed expectations, while Japanese stocks extended currency-linked gains.
Japan’s Nikkei Stock Average advanced 0.8%, while Hong Kong’s Hang Seng Index rose 0.9%.
The moves for the region’s largest markets took place in a broadly positive session for Asia stocks: The Shanghai Composite Index moved higher by 0.5%, South Korea’s Kospi advanced 0.6%, and Australia’s S&P/ASX 200 index gained 0.2%.
Ahead of the Chinese data, most of Asia traded in a tight range after a modestly positive session for U.S. stocks Wednesday, where investors welcomed earnings and guidance from Aloca Inc. .
Asian investors already had their chance to react to Alcoa’s earnings, which were released after the bell on Tuesday, and had been casting about for fresh cues.
That came in the form of the December Chinese trade data, with the world’s second-largest economy reporting a $31.6 billion trade surplus, well above economists’ expectations for a $19.6 billion surplus, with exports surging 14.1% from a year earlier. Read: Why investors should care about China data
Hong Kong-listed property firms — sensitive to perceptions about the health of the Chinese economy — gained notably after the data, with New World Development Co. up 3.4% and Wharf Holdings Ltd. adding 1.4%.
Similarly, banks rose, with Bank of China Ltd. improving by 1.2% and Bank of Communications Co up 0.7%.
Still, DBS Vickers director Peter Lai said some market participants still believe the Chinese economy could be in for hard landing, although he personally doesn’t agree with that view.
“The economic figures seem to be encouraging.” he said. “I am bullish on A-shares,” referring to yuan-denominated mainland Chinese stocks.
Lai favors a variety of Chinese sectors, including consumer shares, retailers and alternative-energy firms.
Lai also said that news of a review of upcoming initial public offerings in China also likely underpinned sentiment, given that it delays the threat of a slew of new listings until at least the end of March
Yen strikes again
In Japan, investors found buying impetus from the yen’s latest multi-year low. With the dollar firmly over the ¥88 mark, investors bought exporter shares on hopes prolonged yen weakness would boost the sector’s competitiveness.
Notable moves included a 3.1% advance for Sony Corp. , a 1.7% rise for Bridgestone Corp. , and a hefty 9% jump for Mazda Motor Corp. — often among the most currency-sensitive of the major Japanese auto makers
Isuzu Motors Ltd. rallied 4% after confirming that it plans to rekindle a tie-up with General Motors Co. , with the two in talks to jointly develop a new pickup truck. Their combined global market share would total some 25%, according to a Nikkei news report.
Brewers were among the decliners in Tokyo as investors shunned more defensive areas of the market, with Asahi Group Holdings Ltd. losing 0.8%, Sapporo Holdings Ltd. down 0.7%.
In South Korean trading, exporters were stronger, with Samsung Electronics Inc. up 1.8% and Hyundai Motor Co. , .climbed 0.7%.
Over in Australia, miners staged a turnaround after the Chinese data, with Rio Tinto Ltd. up 0.5%, and iron ore extractor Fortescue Metals Group Ltd. surging 2.5%.
MacMahon Holdings Ltd. gained 3.6% after receiving a new offer for its construction assets.
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