By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) -- Japanese and Hong Kong rallied Friday,
with Tokyo supported by a drop in the yen to levels last seen
almost four years ago, and financials boosting the Hang Seng Index
in an otherwise range-bound session for Asia.
After gaining 6.4% over the last six sessions, the Nikkei Stock
Average climbed another 2.2% Friday, as investors picked up on a
drop in the yen to a 2009 low against the dollar.
Hong Kong's Hang Seng Index , climbed 1.1% for a likely third
gain in four sessions, while the Shanghai Composite Index dipped
0.2% for a potential second straight loss.
The rest of the region saw a relatively flat performance, with
Australia's S&P/ASX 200 up 0.4%, as the China trade data pulled
the market off early losses, while South Korea's Kospi edged down
0.1% and Singapore's Straits Times Index slipped 0.2%.
It's been a bumpy week for Asia stock markets, especially in
China, after fresh government curbs on the property sector sent
stocks tumbling at the start of the week.
Still, Friday saw some better news from China, with the country
recording a surprise $15.3 billion trade surplus in February,
confounding expectations the economy would swing to a trade deficit
due to seasonal weakness from the weeklong Chinese Lunar New Year
holiday last month.
February's exports were 21.8% higher than a year earlier, when
the Lunar New Year fell in January, while imports were 15.2% lower
than the year-earlier month. Dow Jones Newswires had projected
exports to rise 5% and imports to fall 10%, while Reuters had
exports increasing 10.1% and imports dropping 8.8%. (Read more on
Chinese trade data
http://www.marketwatch.com/story/china-posts-surprise-trade-surplus-despite-holiday-2013-03-07.)
"The improving trend in Chinese export growth adds to confidence
that the global economy is improving," said AMP Capital head of
investment strategy Shane Oliver.
Stepping back from intraday moves, Oliver said that after recent
big gains, shares are still vulnerable to a deeper correction than
the slight wobble seen during the second half of February.
"However, any setbacks are likely to be mild, and the broad
trend in share markets is likely to remain up," he said.
Wall Street stocks rose Thursday, after a six-week low for
jobless claims added to optimism over the U.S. employment picture
ahead of key February nonfarm payrolls due out later Friday. Read:
U.S. stocks climb as jobless claims dip and What to look for in the
February jobs report
Ahead of the report, the dollar (USDJPY) traded at 95.32 yen, up
from Yen94.85 reached in late North American trading on Thursday
and passing the Yen95 mark for the first time since August 2009.
The yen's fall accelerated after the Chinese trade data. Read: Why
the dollar could rise on a good -- or bad -- payrolls report.
The yen's losses again helped the fortunes of many Japanese
exporter shares, as Mazda Motor Corp. (7261.TO) gained 5.5%,
Bridgestone Corp. (BRDCY) rose 5%, and Alps Electric Co. (APELY)
advanced 4.2%.
The yen's moves also fed into optimism over Japan's fight
against deflation, which helped the financial sector move higher in
Tokyo.
Some of the second-tier brokers did particularly well, with
Matsui Securities Co. (MAUSY) adding 5.5% and Credit Saison Co.
(8253.TO) ahead by 5.6%.
In Hong Kong, financials also traded mostly higher, with Bank of
China Ltd. (BACHY) up 0.8% for a weekly gain of 2.5%, and China
Construction Bank Corp. (ACGBY) higher by 1.4% for a weekly gain of
0.8%.
In Shanghai, however, banks were mostly lower, with Agricultural
Bank of China Ltd. down 0.4%, and China Merchants Bank Co. (CIHKY)
also lower by 0.4%.
Broker Citic Securities Co. declined 1.3%, and over in Shenzhen,
property major China Vanke Co. fell 1.7%.
Shares of China Everbright Bank Co. moved 0.3% lower, with Dow
Jones Newswires reporting the firm is relaunching plans for a Hong
Kong listing that could be worth some $1.5 billion. Read: China
Everbright to relaunch Hong Kong IPO plan
In South Korean trading, exporters competing with Japanese firms
were weaker, with auto giant Hyundai Motor Co. (HYMTF) down 1.4%
and consumer electronics heavyweight Samsung Electronics Co.
(SSNLF) moving lower by 1.6%.
In Sydney, investors were buying into resources after the data
from China -- the biggest customer for many Australian firms.
Shares of Rio Tinto Ltd. (RIO) gained 1.9%, Newcrest Mining Ltd.
(NCMGF) rose 1.7% and Fortescue Metals Group Ltd. (FSUMY) improved
by 1.5%.
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