By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Most Asian markets posted modest
gains Wednesday after a record finish for the Dow Jones Industrial
Average, with resource stocks getting a boost, while Tokyo saw
strength for its exporters.
Japan's Nikkei Stock Average climbed 0.7%, with exporters
fronting the gains amid expectations that the U.S. dollar (USDJPY)
may soon cross the 100-yen level in a move that would boost their
repatriated earnings.
"We believe that it will only be a matter of time before this
level is taken out," said BK Asset Management managing director
Kathy Lien.
Among stocks sensitive to currency movements, Toyota Motor Corp.
(TM) added 1.1%, Canon Inc. (CAJ) climbed 2.2% and Komatsu Ltd.
(KMTUF) gained 1.8%.
Elsewhere, South Korea's Kospi added 0.8%, and Taiwan's Taiex
inched up 0.3%, while Australia's S&P/ASX 200 dropped 0.3%
after data showing a decline in consumer sentiment, with banks and
retail stocks leading Sydney's retreat.
Hong Kong's Hang Seng Index gained 0.2% after monthly Chinese
data showed strong growth in imports, resulting in a small trade
deficit in March, but the Shanghai Composite slipped 0.1% in choppy
trade.
The broad regional advance followed a higher finish on Wall
Street overnight, when the Dow industrials (DJI) ended at a record
level. But some analysts raised concerns over U.S. earnings growth
-- a key factor for sentiment in global markets.
"The current U.S. reporting season is set to be a modest one ...
with over 100 companies of the S&P 500 (SPX) having already
provided negative guidance for the first quarter," said Perpetual
head of investment market research Matthew Sherwood.
"Firms with exposure to the deterioration in Europe, the slowing
in Asia and the U.S. dollar's strength can expect some further
downside risk to their numbers," he said.
Several resource-sector stocks advanced across the region after
commodity prices climbed overnight in the U.S. and as the strong
imports data for China underpinned hopes for demand in the world's
second-largest economy.
In Japan, steel maker JFE Holdings Inc. (5411.TO) climbed 3.7%
and commodities trader Marubeni Corp. (MARUY) rose 3.8%; in Sydney,
BHP Billiton Ltd. (BHP) and Rio Tinto Ltd. (RIO) advanced 2.6% and
2.8%, respectively, despite the broader market's weakness; and in
Seoul, shares of Posco (PKX) gained 3.2%.
In Hong Kong, Aluminum Corp. of China Ltd. (ACH) climbed 4.8%,
and Jiangxi Copper Co. (JIXAY) rose 2.8%, while in Shanghai, the
pair jumped 5.6% and 1.7%, respectively.
Bank stocks and retailers retreated in Sydney after data showing
consumer sentiment weakened in April, with National Australia Bank
Ltd. (NABZY) slipping 1%, and Woolworths Ltd. (WOLWF) sliding
1.5%.
Shares of sportswear maker Billabong International Ltd. (BLLAY)
plunged 25.3% after saying it was in talks with a private-equity
consortium over a takeover offer for the firm that was 45% below
previous indicative offers.
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