By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Australian stocks declined, and Hong
Kong equities snapped a three-day winning run on Tuesday, weighed
by overnight losses on Wall Street and uncertainty over U.S.
monetary policy.
Japanese and mainland Chinese shares overcame choppy trade to
finish higher, meanwhile, with a weakened yen helping the Nikkei
Stock Average set a fresh multiyear high.
The S&P/ASX 200 dropped 0.6% in Sydney, the Hang Seng Index
gave up 0.5% in Hong Kong and the Kospi was off 0.1% in Seoul.
Japan's Nikkei changed direction a few times before rising 0.1%
to 15,381.02, its highest finish since December 2007. The benchmark
is now up 11% so far in May, and almost 48% higher from the level
at last year's end.
The Shanghai Composite inched up 0.2%.
"While there is a strong argument among investors that stocks
are due for a pullback, any signs of weaknesses in equities are
very quickly used as a buying opportunity," said Rivkin Securities
global analyst Tim Radford.
"So until we see any indication of the Federal Reserve tapering
stimulus, modest pullbacks of 1%-3% will likely continue to be used
as buying opportunities by market participants riding high on a
stimulus-driven market," he said.
Trading in most markets was choppy after U.S. stocks reversed
course from a record-setting run to end lower Monday, as investors
remained focused on how long the Federal Reserve will maintain its
asset buying -- a key source of stimulus for global equities over
the past several months.
Caution prevailed ahead of Federal Reserve Chairman Ben
Bernanke's testimony before lawmakers Wednesday, even as Chicago
Federal Reserve Bank President Charles Evans on Monday voiced
support for the central bank's accommodative policies, saying the
economy still faced headwinds.
Stock movers
Industrial & Commercial Bank of China Ltd. (IDCBY) fell 2.1%
to weigh on the Hong Kong market, after Goldman Sachs (GS) sold its
remaining stake in the giant Chinese bank for about $1.12
billion.
Among other notable Hong Kong losers, China Construction Bank
Corp. (CICHY) fell 1.4%, and Internet services major Tencent
Holdings Ltd. (TCEHY) fell 1.8%.
Shares of banks and other high divided-yielding companies were
under pressure in Sydney, with Australia & New Zealand Banking
Group (ANZBY) off 2%, Westpac Banking Corp. (WBK) retreating 1%,
and gaming firm Tatts Group Ltd. losing 1.2%.
In Tokyo, Softbank Corp. (9984.TO) fell 3.8% after the Nikkei
newspaper reported the wireless carrier was planning to set a
record with a 400 billion yen ($3.91 billion) retail bond
issuance.
However, Toshiba Corp. (TOSYY) gained 0.9% on another Nikkei
report that the conglomerate plans to sell a semiconductor assembly
plant in China to a Taiwanese firm.
Several exporters came off the day's lows as the yen weakened
after Japan's Economy Minister Akira Amari said he hopes the yen's
foreign-exchange rates will settle at a level that corresponds with
the relative strength of the domestic economy.
Sony Corp. (SNE) inched up 0.1%, and Renesas Electronics Corp.
(RNECY) added 1.6%, with each rebounding from initial losses.
Aiding broader market gains, shares of Subaru-brand vehicle
maker Fuji Heavy Industries Ltd. (FUJHY) rose 3.8% and Fujitsu Ltd.
(FJTSY) climbed 7.9%.
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