By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Asian stock markets rallied on
Wednesday after another record finish for key U.S. equity indexes
and strong Chinese trade data, with Japanese shares edging closer
to five-year highs.
The Nikkei Stock Average climbed 0.7% to end at 14,285.69, its
highest close since June 18, 2008.
The Shanghai Composite rose 0.5% and Hong Kong's Hang Seng Index
added 0.9%, after official data showed China posted a trade surplus
of $18.16 billion in April. Exports jumped 14.7% from a
year-earlier and imports rose 16.8%, with both exceeding
expectations.
Stocks also rallied in other markets that count China as a key
trading partner. Taiwan's Taiex gained 1.3%, Australia's
S&P/ASX 200 rose 1.1%, and South Korea's Kospi climbed
0.1%.
The advances came after the Dow Jones Industrial Average (DJI)
and the S&P 500 (SPX) ended at a record level Tuesday.
Sentiment was also aided by news from Europe, where Germany's
benchmark index ended at a record high and the Stoxx Europe 600
finished at its highest level since June 2008.
"At present, markets are driven by heightened stimulus and the
fact that economic data remain in the Goldilocks range -- weak
enough to warrant continued stimulus, but strong enough to keep
earnings expectations positive," said Matthew Sherwood, head of
investment market research at Perpetual.
Stock movers
The resource sector was a notable gainer across the region as
the jump in monthly imports underlined the strength of Chinese
demand.
"The commodity import picture suggest some moderate recovery in
April," analysts at J.P. Morgan wrote in a note to clients.
PetroChina Co. (PTR) rose 2.9%, and Cnooc Ltd. (CEO) climbed
1.4% in Hong Kong, despite an overnight drop in prices of several
commodities; in Shanghai, coal miners China Shenhua Energy Co.
(CSUAY) gained 0.4%, and China Coal Energy Co. (CCOZY) added
0.2%.
Elsewhere, Fortescue Metals Group Ltd. (FSUMY) spiked 5.4%, and
Rio Tinto Ltd. (RIO) moved 2.6% higher in Sydney. In Tokyo, energy
producer Inpex Corp. (IPXHF) gained 1.8%, and trading house
Marubeni Corp. (MARUY) jumped 1.1%.
In Hong Kong, banking major HSBC Holdings PLC (HBC) jumped 1.7%
to front the market advance a day after it reported a surge in
first-quarter profits.
On the downside, Esprit Holdings Ltd. (ESPGY) dropped 4.8% after
the apparel retailer issued a profit warning.
Shares of bourse operator Hong Kong Exchanges & Clearing
Ltd. (HKXCY) slid 1.1% after its quarterly profit rose just 1% from
a year-earlier, although revenue increased 20%..
In Tokyo, meanwhile, shares of Softbank Corp. (9984.TO) advanced
2.9% after Alibaba Group Holding Ltd. -- in which the
mobile-service provider holds a stake -- said its profits nearly
tripled in the fourth quarter of 2012.
The gains followed a day after Softbank unveiled six new
smartphone models, including handsets that are compatible with
high-definition television broadcasts for mobile phones, according
to a Nikkei newspaper report.
Sharp Corp. [(SHCAY) jumped 6.3% after the Nikkei newspaper
reported two banks had increased the line of credit they set up for
the company.
Some exporters also advanced on strong cues from Wall Street,
with Olympus Corp. gaining 5% and Sony Corp. (SNE) rising 2.1%.
But shares of Toshiba Corp. (TOSYY) tumbled 5% after the Nikkei
separately reported the company may have missed its operating
profit forecast for the fiscal year ended March 31.
After the close, Toshiba reported a 62% drop in its quarterly
net profit, missing analysts' expectations.
In other after-market earnings, Toyota Motor Corp. (TM) reported
its January-March profit more than doubled, far exceeding analysts'
forecasts. Shares of Toyota had closed 1.4% higher ahead of the
results.
Australian shares, which ended lower on Tuesday after the
Reserve Bank of Australia (RBA) surprised most economists with an
interest rate cut, gained as some banks and telecommunication major
Telstra Corp. recovered on the back of their dividend appeal.
"By no means is the yield trade over following yesterday's
surprise rate cut by the RBA. And with scope for the RBA to cut
rates further, we will continue to see investors forced to seek
higher returns, away from bonds and bank deposits and into stocks,"
said Rivkin Securities analyst Tim Radford.
Shares of Commonwealth Bank of Australia (CBAUY) gained 1.3%,
and Australia & New Zealand Banking Group Ltd. (ANZBY) added
0.9%, while Telstra (TLSYY) also climbed 1.2%.
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