By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Japanese shares soared Wednesday on
the back of a weaker yen and strengthening expectations for
earnings growth, sending the benchmark Nikkei Stock Average above
the 15,000-point level for the first time in more than five
years.
Performance in the other regional markets was mixed, with Hong
Kong and Taipei shares also rising after another record finish for
key U.S. equity benchmarks. But equities in Shanghai and Sydney
came under pressure amid lingering concerns about China's economic
growth.
"Broadly speaking, the bulls remain dominant in an equity market
environment of easy money, corporate profits and brighter economic
data from the U.S.," said Niall King, an analyst at CMC Markets in
Sydney.
"However, an overnight dip in commodity prices on the back of
Chinese growth fears has immediately been felt by the local market,
with the materials sector down sharply this morning," he added.
Australia's S&P/ASX 200 dropped 0.6%, China's Shanghai
Composite eased 0.1% and South Korea's Kospi gave up 0.1%.
Meanwhile, Hong Kong's Hang Seng Index rose 0.5% after losing
ground in the previous two sessions, and Taiwan's Taiex added
0.3%.
Japan's Nikkei was the region's best performer by far, climbing
1.8% to 15,020.50. The benchmark hasn't risen above 15,000 since
January 2008.
Several exporters rallied as the U.S. dollar (USDJPY) was
perched above the Yen102 level, with shares of Subaru-maker Fuji
Heavy Industries Co. (FUJHY) gaining 3.7% and Renesas Electronics
Corp. (RNECY) adding 1.4%.
Sony Corp. (SNE) soared 11.1% after billionaire hedge-fund
manager Daniel Loeb called for a spin-off of the company's
entertainment business.
Also delivering a superlative performance, Isuzu Motors Ltd.
(ISUZY) jumped more than 20% after posting upbeat results for the
year ended March 31.
Financials gained on hopes for strong earnings. Mizuho Financial
Group Inc. (MFG) rose 1.3% after a Nikkei newspaper report said its
profit for the year ended March 31 likely topped the lender's
estimates, while Mitsubishi UFJ Financial Group Inc. (MTU) gained
3.1% after a separate Nikkei report the bank is expected to raise
its dividend for the first time in five years.
In a statement, Mitsubishi UFJ said it hasn't made any decision
on dividends.
On the downside, Sharp Corp. (SHCAY) tumbled 8.3% on news the
company will replace top executives after posting the biggest loss
in its history.
In Sydney, shares of Commonwealth Bank of Australia (CBAUY)
climbed 0.6% after posting a 12% increase in third quarter
profit.
But the broad market declined as recent dollar strength kept
commodity prices and shares in the resource sector under
pressure.
Shares of Newcrest Mining Ltd. (NCMGY) dropped 2.8% and BHP
Billiton Ltd. (BHP) lost 2.1%.
Rio Tinto Ltd. (RIO) shares gave up 2.8% following a ratings
downgrade by Barclays to equal weight from overweight.
Several property, insurance and banking stocks traded in
Shanghai retreated to weigh on the broader market amid persistent
fears about the health of the economy, and concerns that Beijing
may not ease its policies to spur growth.
Bank of America Merrill Lynch cut its view on Chinese gross
domestic product growth for 2013 to 7.6% from 8%. The brokerage
wrote in a report that after "recalibrating base effects and taking
into account sluggish external demand, we have changed our
minds."
Shares of Poly Real Estate Group Co. shed 1%, Ping An Insurance
Group Co. (PNGAY) gave up 1.4% and Industrial & Commercial Bank
of China Ltd. (IDCBY) declined 0.5%.
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