By Carla Mozee, MarketWatch
LOS ANGELES (MarketWatch) -- Australian stocks rose Monday, with
financial issues helping lead the advance, while Hong Kong stocks
swung between modest losses and gains at the start of a
holiday-shortened week.
Australia's S&P/ASX 200 advanced 0.6% to 5,126.40, on track
for its fifth win in six sessions, while Hong Kong's Hang Seng
Index rose 0.2% to 22,609.44. South Korea's Kospi was down 0.2% at
1,938.53.
Trading was closed in Japan and mainland China for national
holidays.
Australian stocks gained 3.4% last week, though the market
turned lower Friday to end down by 0.1%.
Rivkin global analyst Tim Radford wrote to clients that
investors on Monday would likely "use the pause as an opportunity
to accumulate high-yielding stocks," ahead of key financial results
from Australia & New Zealand Banking Group Ltd. (ANEWF) and
Westpac Banking Corp. (WBK), due Tuesday and Friday,
respectively.
"Better-than-expected company results and a rate-cut by the
[European Central Bank on] Thursday night [Australian time] could
provide the momentum needed to push the ASX 200 to new 52-week
highs this week," said Radford.
On Monday, shares of ANZ climbed 0.8%, while Westpac rose
1.3%.
Also in the financial sector, which accounts for about 45% of
the ASX 200 index's weighting, shares of Commonwealth Bank of
Australia (CBAUY) rose 1%, and National Australia Bank Ltd. (NAUBF)
moved up 1.4%.
But mining shares traded lower in part as prices for some metals
declined Friday. May copper (HGK3) fell 1.6% after data showed the
U.S. economy grew by a less-than-expected 2.5% in the first
quarter. Gold and silver futures also lost ground.
In Sydney on Monday, gold producer Newcrest Mining Ltd. shed
0.6%, and Rio Tinto Ltd. (RIO) fell 0.8%.
A 13% slide put shares of Kingsgate Consolidated Ltd. (KCN.AU)
in the spotlight, with the stock hit hard after the gold producer
said it's reviewing spending plans in the wake of the decline in
gold prices.
Kingsgate also said it expects output in the fiscal year through
June to come in at the lower end of its previous forecast of
between 200,000 and 220,000 ounces.
In other sector news, a subsidiary of BHP Billiton Ltd. has
agreed to sell its Pinto Valley copper-mining operation in Arizona
to Capstone Mining Corp. . Shares of BHP Billiton (BHP) were off
0.3%.
In Hong Kong, market heavyweight HSBC Holdings PLC (HBC) tacked
on 0.8%, adding to last week's rise of 2.8%, while China
Construction Bank Corp. (CICHY) rose 0.3%. But shares of
Agricultural Bank of China Ltd. (ACGBF) pulled lower by 1.4%.
China Eastern Airlines (CEA) also struggled, with its stock down
1.5% following the carrier's announcement Friday that it lost 132.4
million yuan ($21.5 million) in the first quarter.
However, Chinese telecom major ZTE Corp. (ZTCOF) surged 3.6%
following its first-quarter results, released Friday.
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