By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Japanese stocks rose Thursday after
the yen weakened and the Federal Reserve's Chairman said the pace
of bond purchases would hinge on U.S. economic health, while
Chinese shares fell on concern Beijing won't use stimulus to boost
a slowing economy.
The Shanghai Composite Index surrendered 1.1%, after also losing
1% on Wednesday. The index is among the worst performing major
Asian benchmarks this year -- down nearly 11% from its closing
level of 2012 -- as various economic indicators weakened while
Beijing refrained from easing its policies.
Thursday's drop came after Chinese Finance Minister Lou Jiwei
said Wednesday the government was unlikely to use massive fiscal
stimulus this year, according to a statement posted on the
ministry's website.
Elsewhere, Hong Kong's Hang Seng Index slipped 0.1%, while South
Korea's Kospi retreated 0.6%.
On the upside, Japan's Nikkei Stock Average added 1.3%,
extending gains in afternoon trading as the U.S. dollar (USDJPY)
climbed back above the key Yen100-level during the session,
spurring shares of several firms with a large international
presence. The advance, which marked a fifth straight day of gains
for the Nikkei, came amid expectations that the ruling Liberal
Democratic Party will secure a majority in the Upper House
elections over the coming weekend.
Meanwhile, Australia's S&P/ASX 200 edged up 0.2%.
Their gains came as U.S. stocks ticked higher Wednesday after
the Fed chairman said the central bank's monthly bond purchases
weren't on a "pre-set course" and could be curbed or extended,
depending on economic conditions.
"Fed Chairman Bernanke didn't deliver anything new in his
testimony yesterday but still managed to provide further
reassurance to markets," said Crédit Agricole head of Asia global
markets research Mitul Kotecha.
In addition to Bernanke's testimony to Congress,
better-than-expected results from Bank of America Corp. (BAC) also
helped banking shares advance on Wall Street.
Several major financial stocks posted gains following positive
cues from the U.S. Sumitomo Mitsui Financial Group Inc. (SMFJY)
rose 2.2% in Tokyo, National Australia Bank Ltd. (NABZY) added 1%
in Sydney, and HSBC Holdings PLC (HBC) climbed 0.2% in Hong
Kong.
Shares of Softbank Corp. (9984.TO) jumped 4% on news the
Japanese telecommunications firm will form a 50-50 joint venture
with Bloom Energy to deploy the U.S.-based firm's energy
servers.
Toshiba Corp. (TOSYY) gained 2.3% after the Nikkei newspaper
reported the company planned to invest in capacity expansion for
smartphone chips for the first time in about two years.
Chinese property stocks declined, shrugging off official data
showing new home prices continued to rise in a majority of Chinese
cities in June.
Shares of China Overseas Land & Investment Ltd. (CAOVY) fell
1.4% and China Resources Land Ltd. (CRBJF) shed 3.3% in Hong Kong.
Gemdale Corp. gave up 3% in Shanghai, and the yuan-denominated A
shares of China Vanke Co. slid 2.6% in Shenzhen.
China Resources Power Holdings Co. fell 1.8% in Hong Kong,
extending Wednesday's 10% tumble, although the company said
allegations that it had deliberately overpaid for coal assets in
2010 were "malicious slander."
In Australia, surfwear maker Billabong International Ltd.
(BLLAY) climbed a further 9% after Wednesday's 34% surge, following
news it has secured a private-equity loan and that it was replacing
the company's chief executive.
A rise in U.S. crude-oil prices Wednesday helped lift energy
producers. Japan Petroleum Exploration Co. gained 0.7% in Tokyo,
and Santos Ltd. rose 2.3% in Sydney.
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