By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- South Korean and Japanese stocks rose
and mainland Chinese shares fell after a choppy trading session in
Asia Wednesday as investors looked ahead to Federal Reserve
Chairman Ben Bernanke's congressional testimony later in the
day.
BHP Billiton Ltd. and Rio Tinto Ltd. rose in Sydney after
issuing strong production reports, while Datang International Power
Generation Co. climbed in Shanghai and Hong Kong on an upbeat
profit forecast.
South Korea's Kospi ended 1.1% higher, Japan's Nikkei Stock
Average rose 0.1% and Australia's S&P/ASX 200 slipped 0.1%.
China's Shanghai Composite lost 1% and Hong Kong's Hang Seng
Index gained 0.3%.
Most regional benchmarks changed direction at least once during
the session as investors awaited the Fed Chairman's outlook for
monetary policy and the central bank's monthly bond purchases.
"Traders appear to be in a less-than-adventurous mood ahead of
the Fed Chairman's testimony, with the market a little unsure as to
whether Bernanke will be wearing his hawkish cap or his dovish
cap," said Tim Waterer, a senior trader at CMC Markets.
The Fed chairman's testimony, starting Wednesday and ending
Thursday, comes after global equity markets got a boost from his
remarks last week that the U.S. central bank was in no hurry to
raise interest rates.
U.S. stocks fell Tuesday, with Coca-Cola Co. (KO) and Goldman
Sachs Group Inc. (GS) losing ground after their quarterly results,
and as investors considered Kansas City Fed President Esther
George's comment that the Federal Reserve should pare its bond
purchases sooner rather than later.
"While we don't expect Bernanke to say anything dramatically
different from last week, speeches by policy makers are organic,
and under tough grilling from Congress, Bernanke could reveal more
than he otherwise wanted," said BK Asset Management managing
director Kathy Lien.
The mild gains in Hong Kong came as official data showing
foreign-direct-investment flows into China jumped more than 20% in
June.
Meanwhile, the Xinhua news service reported that profit at
state-owned companies outside the financial sector rose 7% in the
first half of the year, accelerating from a 6.5% increase in the
first five months of 2013. China's Ministry of Land and Resources
said separately that land prices were expected to rise further in
the current quarter, according to a Reuters report.
Datang International Power Generation Co. rose 3.5% in Shanghai
after the company said it expects a jump of 70%-80% in the first
half profit from the year-earlier period.
Chinese coal miners posted strong gains in Hong Kong after sharp
losses over the past month, with China Shenhua Energy Co. (CSUAY)
jumping 5.3%, and China Coal Energy Co. (CCOZY) rising 3%.
Australian miners were among the region's notable stock gainers
Tuesday, with BHP (BHP) climbing 2.3% after its iron-ore production
hit a record high in the previous financial year. The diversified
resources firm also produced more oil and gas in the year ended
June 30.
Fellow miner Rio Tinto (RIO) rose 1.1%, on top of its 1.4%
advance Tuesday, when it said its own iron-ore production hit a
record level in the second quarter.
Shares of surfwear maker Billabong International Ltd. (BLLAY)
spiked 34% on news the company has secured a private-equity loan
and was replacing its chief executive.
In Tokyo, shares of Mitsubishi Motors Corp. (MMTOY) soared 11.1%
accompanied by massive volume after the Nikkei newspaper reported
it will likely pay out 30%-40% of its profit during the current
financial year ending in March in the form of dividends.
NEC Corp. (NIPNF) jumped 4.8% after a separate Nikkei report
said the company will exit the smartphones business after it was
unable to tie up with Lenovo Group Ltd. Shares of Lenovo (LNVGY)
gained 0.4% in Hong Kong.
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