By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Japanese stocks jumped Tuesday to
lead Asian markets higher, with gains spread across sectors on a
weakened yen and a report the government is considering a cut in
corporate taxes.
The Nikkei Stock Average rose 1.5%, while elsewhere in Asia,
South Korea's Kospi added 0.6%, and Australia's S&P/ASX 200
gained 0.1%.
The Shanghai Composite inched 0.1% higher in choppy trading
after rallying 2.4% in the previous session, while Hong Kong's Hang
Seng Index added 0.4%, on a path to a fourth straight day of
gains.
"Investors are digesting the deluge of July activity data late
last week, the main highlight of which was acceleration in exports,
industrial production and M2 [money supply growth]. These are
hopeful signs of economic recovery in the second half of the year,"
said ING Financial Markets economist Prakash Sakpal.
The advance came in spite of weak overnight cues from Wall
Street, where the Dow Jones Industrial Average (DJI) and the
Standard & Poor's 500 Index (SPX) ended lower Monday, though
the Nasdaq Composite (RIXF) saw a mild gain.
"Investors seem to be weighing the positives of an improving
U.S. economy against the negatives of a weak global economy and the
potential for the [Federal Reserve] to taper its bond-purchase
program this fall," said Wells Fargo Advisors chief macro
strategist Gary Thayer.
The solid gains in Tokyo also got help from a report in the
Nikkei newspaper Tuesday that Prime Minister Shinzo Abe may propose
a reduction in corporate taxes if he decides in favor implementing
a planned increase in the consumption tax.
Among major movers in Japan, shares of Fuji Heavy Industries
Ltd. (FUJHY) climbed 3.4%, Softbank Corp. (9984.TO) added 4.3%,
Japan Tobacco Inc. (JAPAF) rose 2.7%, Tokyo Electron Ltd. (TOELY)
advanced 1.3% and Mizuho Financial Group Inc. (MFG) gained
1.5%.
Data released earlier in the day showed Japan's core machinery
orders fell 2.7% in June, a milder decrease than expected.
In China, property shares added to their recent gains, following
a Reuters report that the eastern city of Wenzhou has become the
first to ease restrictions on real-estate purchases.
Shares of China Overseas Land & Investment Ltd. (CAOVY) rose
1%, and China Resources Land Ltd. (CRBJF) gained 3.1%.
In Sydney, shares of Stockland declined 2.5% after the developer
and real-estate investor posted a 79% drop in full-year profit.
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