By Chao Deng
Stocks in Asia rose Thursday, led by gains in Japan, where the
benchmark index touched a near seven-year high.
The Nikkei Stock Average rose 1.0% to 16320.77--its highest
level since November 2007---after the dollar hit a fresh six-year
high against the yen. A weaker yen (USDJPY) helps Japanese
exporters, which in turn boosts the stock market. The dollar
touched Yen109.34, its highest level since August 2008 and was last
at Yen109.14, slightly above Yen109.05 late Wednesday in New
York.
Asian markets were also helped by a rise in U.S. stocks
overnight. Data on new homes sales jumped in August, marking the
highest level of sales since May 2008, although sales of previously
owned homes fell, ending four months of gains. Uncertainty about
the eurozone's economic recovery remained, amid a drop in German
business confidence in September to its lowest level in more than a
year.
Australia's S&P/ASX 200 was up 0.4%, ahead of a speech by
Australia's central bank governor, Glenn Stevens. Australian shares
fell yesterday after regulators raised the possibility of adopting
further measures to curb mortgage-lending practices.
Korea's Kospi edged up 0.4%.
Hong Kong's Hang Seng was up 0.5%, while the Shanghai Composite
was up 0.6%, setting a fresh highs in more than 18 months, after
Beijing's move to cut the tax burden for companies spurred buying
interest.
However, gains were tempered by caution over the pace of
economic growth in China, where leaders are discussing replacing
the central bank chief, Zhou Xiaochuan, amid disagreements over the
direction of financial policy and concerns over slowing growth.
The Asian Development Bank expects China to meet its growth
forecast of 7.5% for this year. But earlier this week, Goldman
Sachs (GS) cut its 2014 GDP forecast for China to 7.1% from
7.6%.
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