By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Most Asian markets rose Thursday
after U.S. and German equities climbed further into record
territory, with South Korean stocks jumping after a surprise rate
cut by the nation's central bank, while an improved earnings
outlook spurred Japanese shares.
Mainland Chinese shares slipped after consumer prices rose more
than expected in April, while Hong Kong stocks gave up their
initial advance.
The Shanghai Composite dropped 0.2%, and Hong Kong's Hang Seng
Index slipped 0.1% in choppy trading, after official data showed
China's consumer price index rose 2.4% in April from the
year-earlier period, driven by food prices.
The "key for CPI is that it is still below the government target
for the year. The question is whether this is a reflection of a
wider slowing of the economy," said Kim Eng Securities director of
sales trading Andrew Sullivan.
The Nikkei Stock Average rose 0.8% in Tokyo after ending
Wednesday at its best level since June 2008, while the broader
Topix index gained 0.4%. Both benchmarks were on course for a third
straight day of gains.
The Kospi added 0.9% after a surprise interest-rate cut by the
Bank of Korea, while Australia's S&P/ASX 200 gained 0.1% after
it also ended at the highest level since June 2008.
The day's broad gains came after the Dow Jones Industrial
Average (DJI) and the Standard & Poor's 500 Index (SPX)both
ended at record highs in the U.S. on Wednesday, while the German
benchmark index also finished at an all-time peak.
Chinese property developers fell after the inflation data.
Gemdale Corp. lost 1.2% in Shanghai, China Vanke Co. fell 0.9% in
Shenzhen, and China Overseas Land & Investment Ltd. (CAOVY)
shed 1% in Hong Kong.
In Tokyo, shares of Toyota Motor Corp. (TM) rose 1.4% after its
profit more than doubled in the quarter ended March 31 on the back
of strong sales in the U.S. and a weakened yen.
Other exporters climbed on upbeat overseas cues, with Fanuc
Corp. (FANUY) rising 2.6%, and Casio Computer Co. (CSIOY) adding
3.4%.
But shares of Toshiba Corp. (TOSYY) dropped 3.1% after its
profit growth fell short of expectations.
Resona Holdings Inc. (8308.TO) added 2.4% after the Nikkei
reported the financial-services firm planned in five years to repay
the public funds it owes the government.
Daikin Industries Ltd. (DKILY) soared 7% after the company
posted an increase in annual profit.
In Seoul, shares of KB Financial Group Inc. (KB) rose 2.4%, and
Shinhan Financial Group Co. (SHG) gained 1.9% after the Bank of
Korea's interest-rate cut by a quarter-point to 2.5%, after most
economists had expected no change.
In Sydney, advancers also included News Corp. (NWS), shares of which climbed 3.3%.
The media conglomerate posted fiscal-third-quarter earnings
excluding items of 36 cents a share, beating analyst expectations
by 1 cent a share. Revenue totaled $9.54 billion, ahead of
projections of $9.14 billion. News Corp. is the owner of
MarketWatch, the publisher of this report.
Also on the Australian market, Billabong International Ltd.
(BBG.AU) has requested its shares be suspended from quotation,
pending an announcement related to transactions affecting the
surfwear retailer, which has been in takeover talks.
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