By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Japanese and Australian shares rose
Thursday after the U.S. economy grew faster than expected and the
Federal Reserve offered no guidance on when it will scale back its
bond purchases.
Japan's Nikkei Stock Average endured a volatile start to climb
0.4%, also aided by a string of strong earnings reports, including
from two of the nation's largest banks, as well as Panasonic Corp.
and Tokyo Electric Power Co.
Australia's S&P/ASX 200 rose 0.4%, but South Korea's Kospi
gave up 0.1%.
"The main event of the week has come and gone now, and it seems
to have left market participants with a bit more confusion. While
there were no major surprises from the Fed, analysts feel the
statement was slightly more dovish," said IG Markets strategist
Stan Shamu.
Shamu was referring to the Federal Reserve's statement overnight
after a two-day meeting which gave no hint of plans to pare the
U.S. central bank's $85 billion-a-month in asset purchases. Data
released Wednesday by the Commerce Department showed the U.S.
economy grew at an annual rate of 1.7% in the second-quarter,
beating expectations for a 1% expansion.
Following the Fed's statement, investors turned their attention
to the final result of HSBC's survey on Chinese manufacturing
conditions in July.
An official Chinese survey released earlier Thursday showed the
Purchasing Managers' Index for the sector unexpectedly rose to 50.3
in July, from 50.1 in June. A reading above 50 indicates an
improvement, while one below shows a deterioration in conditions at
factories.
"If Chinese manufacturing data today show that economic growth
is deteriorating at an accelerated rate, we could see this recent
momentum halted, particularly in materials stocks," said Rivkin
Securities global analyst Tim Radford in reference to the
Australian resource sector.
Australian energy and retail groups advanced, with Woodside
Petroleum Ltd. (WOPEY) climbing 1.9%, and Wesfarmers Ltd. (WFAFY)
rising 0.6%.
But banks were mostly lower as the high-dividend-yield sector
felt the weight of the Australian dollar's (AUDUSD) drop to a
nearly three-year low Wednesday. Among them, Commonwealth Bank of
Australia (CBAUY) eased 0.7%.
In Tokyo, a slew of earnings reports released late on Wednesday
influenced stock moves.
Panasonic (PCRFY) jumped 4.2% after its operating results beat
estimates, and Tokyo Electric (TKECY) soared 5.7% after the company
swung back to a quarterly profit.
Mitsubishi UFJ Financial Group Inc. (MTU) rose 0.8% after its
quarterly profit rose 40%, while Mizuho Financial Group Inc. (MFG)
gained 1% following a 35% improvement in net profit.
On the downside, shares of Honda (HMC) tumbled 3.3% after a drop
in profits, while Mazda Motor Corp. (MZDAY) gave up 2.4% after also
reporting its results.
Sony Corp. (SNE) fell 1.6% after the Nikkei newspaper reported
its board may reject a proposal from U.S. hedge fund Third Point to
spin off its entertainment division.
Trading in shares of Sharp Corp. (SHCAY) was halted after a
local media report said it was going to raise funds via a public
share offering.
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