By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Most Asian markets advanced
Wednesday, with a rise in commodity prices and a surge in Chinese
imports boosting resource stocks, while Japanese shares get support
from the weak yen.
Japan's Nikkei Stock Average rose 0.7% to 13,288.13, a closing
level it hasn't seen since Aug. 12, 2008.
South Korea's Kospi and Hong Kong's Hang Seng Index added 0.8%
each and Taiwan's Taiex gained 0.3%.
China's Shanghai Composite ended flat after a choppy trading
session, but largely unmoved by Fitch Ratings' downgrade on Tuesday
of the country's local-currency debt ratings.
Australia's S&P/ASX 200 eased 0.2%.
Commodity producers were bolstered by monthly Chinese data
showing a strong growth in imports, although the rate of increase
in exports slowed, leading to a surprise trade deficit for
March.
The growth in imports "indicates that domestic consumption is
showing signs of rising, which is in line with the central
government's policy and would be good for China long-term," said
Kim Eng Securities director for sales Andrew Sullivan.
In Japan, steel maker JFE Holdings Inc. (5411.TO) climbed 4.1%
and commodities trader Marubeni Corp. (MARUY) rose 4.3%, while in
Seoul, shares of steel major Posco (PKX) gained 2.6%.
In Sydney, BHP Billiton Ltd. (BHP) and Rio Tinto Ltd. (RIO)
advanced 1.7% and 2.7%, respectively, despite the broader market's
weakness, after data showing a rebound in Chinese iron-ore imports
in March from a decline in the first two months of the year.
In Hong Kong, Aluminum Corp. of China Ltd. (ACH) climbed 3.1%,
and Jiangxi Copper Co. (JIXAY) rose 1.1%, while in Shanghai, they
rose 5.6% and 1.1%, respectively.
The broad advances followed a higher finish on Wall Street
overnight, with the Dow industrials (DJI) ending at a record-high
level. But some analysts raised concerns over U.S. earnings growth
-- a key driver for sentiment in global markets.
"The current U.S. reporting season is set to be a modest one ...
with over 100 companies of the S&P 500 (SPX) having already
provided negative guidance for the first quarter," said Perpetual
head of investment market research Matthew Sherwood.
"Firms with exposure to the deterioration in Europe, the slowing
in Asia and the U.S. dollar's strength can expect some further
downside risk to their numbers," he said.
U.S. equity index futures were higher by late afternoon in Hong
Kong, with Dow Jones Industrial Average futures up 30 points, or
0.2%, at 14,640.
Gains in Japan came amid expectations the U.S. dollar (USDJPY)
may soon cross the 100-yen level despite the pair's inability to
cross over the threshold Tuesday.
"We believe that it will only be a matter of time before this
level is taken out," said BK Asset Management managing director
Kathy Lien.
A survey by the Nikkei newspaper, showing that two-thirds of
corporate leaders expect business to improve because of the yen's
recent movements, also aided sentiment.
Among stocks sensitive to currency movements, Toyota Motor Corp.
(TM) added 1.1%, Canon Inc. (CAJ) climbed 2% and Komatsu Ltd.
(KMTUF) gained 1.7%.
Among banks, Mitsubishi UFJ Financial Group Inc. (MTU) jumped
5%, and Sumitomo Mitsui Financial Group Inc. (SMFJY) soared
6.7%.
However, shares of banks and retailers retreated in Sydney after
data showing that consumer sentiment weakened in April.
Among the blue chips, National Australia Bank Ltd. (NABZY)
slipped 0.7%, and Woolworths Ltd. (WOLWF) slid 1.1%.
Shares of sportswear maker Billabong International Ltd. (BLLAY)
plunged 26.7% after the firm said it was in talks with a
private-equity consortium over a takeover bid that was 45% below
previous indicative offers.
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