Asian markets rose Monday, with Australia's S&P ASX 200
again verging on the 6000 mark, amid gains in mining stocks.
The S&P ASX 200 was up 0.8% at 5982.40 with a continued
recovery in iron ore prices buoying Australian mining shares-- BHP
Billiton, Rio Tinto and Fortescue were up 1.5%, 2.3% and 8.1%,
respectively.
A break to 6000 would be the first time for the index since
2008. "The market has been trying to get to the 6000 mark since
February," with the support of expectations for an interest-rate
cut, says Shane Oliver, head of investment strategy at AMP
Capital.
The benchmark is up nearly 11% year to date, as it plays catch
up to global shares since its 2009 lows and after finishing
virtually unchanged last year, said Mr. Oliver. Some economists are
expecting Australia's central to bank to cut rates for the second
time this year next week.
The Shanghai Composite Index popped 2.2% on speculation that
China is stepping up reform of its state-owned enterprises. The
country's state-asset regulator plans to consolidate
centrally-administered SOEs to 40 from 112, according to a local
report by Economic Information Daily. "This story is getting a lot
of attention today," said David Welch, head of Asian equity
distribution at Hong Kong based bank Reorient Group.
The region was getting a lift from gains in the U.S. Friday,
where the S&P 500 and Nasdaq Composite pushed to fresh highs.
Global investors await the latest policy announcement from the U.S.
Federal Reserve on Wednesday, which has signaled that a rate
increase in June has become less likely.
Taiwan's Taiex was up 0.7% at 9982.51, on track for another
15-year high. The index's record is 10202.20 in December 2000.
The Hang Seng Index was up 0.7% to 28245.14, extending six
straight weeks of gains.
China Construction Bank Corp. was up 0.8% in Hong Kong. The
bank, the underwriter for 1.5 billion yuan ($242 million) of notes
issued by Baoding Tianwei Group, has come to the aid of the
state-owned company to help it make an overdue interest payment, a
Chinese business magazine said Saturday.
The Nikkei Stock Average was last near flat at 20018.30, as
investors await announcements from both the U.S. Federal Reserve
and the Bank of Japan at the end of this month.
Write to Chao Deng at Chao.Deng@wsj.com
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