By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) -- Most major Asia stock markets wobbled
around the flat line in Monday trading, though Japanese equities
outperformed to hit a seven-month high as the yen weakened further
against major rivals.
Japan's Nikkei Stock Average climbed 0.7% to a level not seen
since late April as investors returned from a three-day
weekend.
Around the region, Australia's S&P/ASX 200 index advanced
0.1%, while South Korea's Kospi traded flat.
Chinese shares also started the week on a muted note, with Hong
Kong's Hang Seng Index marginally lower and the Shanghai Composite
Index also trading with fractional losses.
Euro-zone finance ministers were set to reconvene on Monday
after failing to approve Greece's latest tranche of aid last week,
stoking caution in the markets, while traders also had "some doubts
about the significance of the strong rally in U.S. markets on
Friday," said Ric Spooner, chief market analyst at CMC Markets.
"In these circumstances, many traders prefer a cautious stance,
waiting to see if the market can hold these gains once [U.S.]
trading returns to normal this week," Spooner said.
Signs that U.S. retail sales could gather momentum going into
the holiday season and optimism that the global economic backdrop
was improving buoyed Wall Street at the week's end.
Monday's Japanese stock gains followed a 3.8% advance for the
Nikkei Stock Average over the four trading days last week, as the
yen weakened further. The dollar advanced 1.3% against the yen last
week, with the move bringing gains so far in November to 3.3%.
The yen has lately been under pressure from speculation of more
monetary-policy easing.
Just ahead of the stock-market open on Monday, the Japanese
central bank released the minutes of its Oct. 30 policy meeting --
a meeting at which it decided to expand its asset-buying program --
with the minutes' language underlining plans to "undertake further
aggressive monetary easing."
The central bank stood pat at a subsequent meeting last week --
minutes for which have yet to be released -- though it hinted at
more easing to come.
Japan's major exporters got a boost as the euro broke above the
107-yen level early Monday to hit a seven-month high against the
Japanese currency before later falling back to ¥106.55.
The dollar traded at ¥82.26, down slightly from
¥82.35 reached on Friday, and also giving up early
strength.
Euro-exposed names were stronger on Monday. Canon Inc. (CAJ)
rose 1%, Mazda Motor Corp. (7261.TO) advanced 0.8% and Pioneer
Corp. (6773.TO) jumped 4.6%.
Tokyo-listed car makers were higher as well, with Toyota Motor
Corp. (TM) up 2.3%, Honda Motor Co. (HMC) gaining 1.2%, and Nissan
Motor Co. (NSANY) ahead by 2.9%.
On the deal front, a report Monday in the Nikkei business daily
said the three top shareholders in struggling microchip maker
Renesas Electronics Corp. (RNECY) were set to buy the firm out as
previously tipped, sending Renesas shares jumping 10.4%.
Hitachi Ltd. (HIT) and NEC Corp. (NIPNF), both among the
reported buyers of Renesas, saw their shares rise 0.4% and 0.7%,
respectively. The third buyer, Mitsubishi Electric Corp. (MIELF),
rallied 2.9%.
In Australia, Qantas Airways Ltd. (QUBSF) climbed 2% after an
Australian Financial Review report over the weekend said that a
group of former executives and investors had bought a stake in the
firm.
Gains for energy and material firms offered broad support for
the Australian market, with Beach Energy Ltd. (BCHEY) up 1.4%, and
gold extractor Newcrest Mining Ltd. (NCMGF)(NCMGF) advancing
1.3%.
In Hong Kong, investors weren't so keen on energy firms,
however, with losses for China Petroleum & Chemical Corp.
(SNP), down 1.4%, and China Shenhua Energy Co. (CSUAY), lower by
1.1%, working to weigh on the market.
Away from energy, airline Cathay Pacific Airways Ltd. (CPCAY)
fell 2%. Late Friday, the Hong Kong-listed carrier said that
competition has pushed average economy-class ticket prices 4% lower
compared to the previous year, while premium traffic suffered amid
challenging global economic conditions.
Airlines listed on the Chinese mainland also weakened Monday,
with Air China Ltd. (AIRYY) down 0.4% and China Eastern Airlines
Corp. (CEA) falling 0.6% in Shanghai.
Losses for Samsung Electronics Inc. (SSNLF) weighed in Seoul,
with the heavily weighted electronics major trading down 1.9%.
Arch-rival Apple Inc. (AAPL) reportedly filed Friday to add six
more Samsung products to its patent infringement lawsuit against
the Korean firm.
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