By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Japanese stocks climbed Wednesday on
a weakened yen and a positive lead from Wall Street, while
Australian shares were weighed as heavyweight Commonwealth Bank of
Australia fell after posting results.
The Nikkei Stock Average ended 1.3% higher in Tokyo, helped by
strong buying activity in late afternoon trade after the benchmark
dipped into losses earlier in the day.
South Korea's Kospi gained 0.6% and Australia's S&P/ASX 200
ended flat. China's Shanghai Composite fell 0.2% in choppy
afternoon trade.
Trading in Hong Kong was canceled because of a storm.
Steel and automobile shares advanced in Tokyo as the U.S. dollar
(USDJPY) rose above the Yen98-level.
"After a long period of underperformance, [the dollar's rate
against the yen] seems to be back in its stride and rallied through
Yen98 to a high of Yen98.34," said IG Markets strategist Stan
Shamu.
"Perhaps reports that Prime Minister [Shinzo] Abe is considering
lowering corporate-tax rates to counter the sales-tax hike will
continue to gain momentum and underpin the Nikkei [Stock Average's]
rally," Shamu said.
JFE Holdings Inc. (5411.TO) rose 3%, and Kobe Steel Ltd. (KBSTY)
added 3.7%, while Mazda Motor Corp. (MZDAY) advanced 2.1%.
The stock performance in Asia followed a higher finish on Wall
Street Tuesday, where U.S. markets got support from billionaire
investor Carl Icahn's disclosure that he held a sizeable stake in
Apple Inc. (AAPL), as well as data showing U.S. retail sales grew
for a third straight month in July.
In Sydney, shares of Commonwealth Bank (CBAUY) fell 1.2%, even
as the lender reported a record profit for the year ended June 30
and increased its dividend payout.
"A solid result by Commonwealth Bank and a firm lead from U.S.
markets will set the early tone in this morning's market. However,
investors will be keen to assess whether CBA's result and dividend
payment will be good enough to prevent some short-term
profit-taking," said CMC Markets chief market analyst Ric
Spooner.
Other banks gained, however, after the strong results. National
Australia Bank Ltd. (NABZY) rose 0.8%, while Westpac Banking Corp.
(WBK) advanced 1%.
Mining major Rio Tinto Ltd. (RIO) fell 0.5% as the stock traded
without rights to a dividend.
Meanwhile, gains in automobile shares helped support the
Shanghai market amid hopes policy makers would support the economy.
SAIC Motor Corp. jumped 2.9%, and Anhui Jianghuai Automobile Co.
climbed 1.6% in Shanghai afternoon trading.
The rise in SAIC shares came after news that Huayu Automotive
Systems Co., of which the automobile major owns 60%, had agreed to
buy Visteon Corp.'s (VC) 50% stake in their joint venture for $1.25
billion in cash.
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