By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Japanese stocks jumped Tuesday on a
weakened yen and a report the government is considering a cut in
corporate taxes, while Hong Kong shares rose for a fourth straight
day amid optimism over the Chinese economy.
Japan's Nikkei Stock Average climbed 2.6% to lead a broad
rebound in Asia, South Korea's Kospi rose 1.5%, Australia's
S&P/ASX 200 gained 1%.
Hong Kong's Hang Seng Index advanced 1.2%, and the Shanghai
Composite inched 0.2% higher.
"Investors are digesting the deluge of July activity data [for
China] 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 broad advances 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, while 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 the major movers in Japan, shares of Fuji Heavy Industries
Ltd. (FUJHY) spiked 5.6%, Softbank Corp. (9984.TO) soared 6.3% and
Renesas Electronics Corp. (RNECY) climbed 5.4%.
Data released earlier in the day showed Japan's core machinery
orders fell 2.7% in June, a milder decrease than expected.
Chinese 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
2.3% and China Resources Land Ltd. (CRBJF) surged 6% in Hong Kong,
while Gemdale Corp. gained 1% in Shanghai.
In Sydney, shares of Stockland declined 2.9% after the developer
and real-estate investor posted a 79% drop in full-year profit.
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