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.
The rally further widened the Japanese benchmark's
outperformance against other regional indexes, most of which also
ended modestly higher after another record finish for key U.S.
equity benchmarks. But equities in Sydney retreated as commodity
prices fell on a strengthening dollar and 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.
Japan's Nikkei was the region's best performer by far, climbing
2.3% to 15,096.03, a closing level it hasn't seen since December
2007.
Meanwhile, Taiwan's Taiex added 0.8%, Hong Kong's Hang Seng
Index rose 0.5% after losing ground in the previous two sessions,
China's Shanghai Composite gained 0.4% and South Korea's Kospi
inched up 0.1%.
Australia's S&P/ASX 200 went against the regional trend,
dropping 0.6%.
At the end of Wednesday's trading, the Nikkei had climbed more
than 45% so far in 2013, easily beating other regional
benchmarks.
Stock movers
Several Japanese exporters rallied as the U.S. dollar (USDJPY)
remained perched above the Yen102 level, with shares of
Subaru-maker Fuji Heavy Industries Co. (FUJHY) gaining 5% and Japan
Tobacco Inc. (JAPAF) jumping 5.8%.
Sony Corp. (SNE) soared 10.4% 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 0.9% after a Nikkei newspaper report said its
profit for the year ended March 31 likely topped the lender's
estimates, and 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) plunged 12.8% 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 0.8% 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 2.9% and BHP
Billiton Ltd. (BHP) lost 1.9%.
Rio Tinto Ltd. (RIO) shares gave up 3.1% following a ratings
downgrade by Barclays to equal weight from overweight.
Some Shanghai-listed property, insurance and banking stocks
retreated 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 0.2%, Ping An
Insurance Group Co. (PNGAY) gave up 0.9% and Industrial &
Commercial Bank of China Ltd. (IDCBY) declined 0.5%.
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