By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Most Asian stocks advanced Wednesday
as a higher finish for U.S. equities and gold prices encouraged
buyers, and with Japanese shares rebounding after a three-day
losing streak as the yen weakened.
The advance followed an unexpectedly strong increase in U.S.
housing starts and better-than-expected earnings from companies
including as Coca-Cola Co. (KO) and BlackRock Inc. (BLK) that
spurred major stock indexes on Wall Street to gains of at least
1.1% overnight.
"Following a string of gloomy global economic data and a near
meltdown in commodities, equity investors seem determined to cling
to the coattails of the American dream and are once again bouncing
to the tune of an expected continuation of monetary stimulus," said
CMC Markets sales trader Niall King.
Australia's S&P/ASX 200 gained 0.9%, while Hong Kong's Hang
Seng Index and Taiwan's Taiex each edged 0.1% higher.
However, China's Shanghai Composite Index and South Korea's
Kospi dropped 0.3% each in choppy trading.
Japan's Nikkei Stock Average climbed 0.9%, as the U.S. dollar
climbed back above Yen98, and after Credit Suisse on Tuesday raised
its rating on Japanese equities to overweight.
Gains in Tokyo also took support from the International Monetary
Fund's upgrade of the country's economic growth outlook for 2013 to
1.6%, applauding Japan's aggressive new monetary easing, even as it
downgraded U.S. forecasts.
Shares of Sony Corp. (SNE) climbed 1.8%, index-heavyweight Fast
Retailing Co. (FRCOY) rose 1%, shipping firm Kawasaki Kisen Kaisha
Ltd. added 2.8% and Mazda Motor Corp. (MZDAY) jumped 4% in a bounce
spread across sectors.
"Risk sentiment as suggested by U.S. stock markets is unlikely
to deteriorate sustainably. ... Any further weakening of Chinese
growth expectations may result in renewed easing expectations,"
said strategists at Crédit Agricole.
"We remain of the view that dips [in U.S. dollar versus the yen]
should be bought, as the pair is ultimately still set to move
higher," they said.
Shares of Nomura Holdings Inc. (NMR) dropped 1.2% after Italian
police froze 1.8 billion euros ($2.35 billion) in funds from a unit
of the investment bank as part of an investigation into Banca Monte
dei Paschi di Siena . The case stems from a structured-products
transaction that the Nomura unit worked on with Monte dei
Paschi.
Telecommunications firm Softbank Corp. (9984.TO) edged up 0.3%,
after suffering heavy losses Tuesday after Dish Network Corp.
(DISH) trumped its takeover bid for U.S. firm Spring Nextel Corp.
(US-S)
In Hong Kong, property developers and airline stocks helped
underpin the advance. Shares of China Overseas Land &
Investment Ltd. (CAOVY) rose 2.1%, while Cathay Pacific Airways
Ltd. (CPCAY) climbed 3.2%.
A few gold-linked stocks saw a mild recovery after recent
losses, with gold miner Newcrest Mining Ltd. (NCMGY) climbing 0.7%
as gold futures settled higher overnight. In Hong Kong, Chow Tai
Fook Jewellery Group Ltd. (CJEWY) rose 1.9%.
BHP Billiton Ltd. (BHP) fell 0.4% in Australia after reporting
that its iron-ore output increased less than expected in the fiscal
third quarter.
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