By Michael Kitchen, MarketWatch
LOS ANGELES (MarketWatch) -- Asian stock markets traded broadly
higher Friday, with Japanese blue chips swinging to gains in the
afternoon session, though the advance was modest after volatile
moves earlier in the week.
The rise for the major markets came as Hong Kong and Seoul were
closed for holidays, curbing trading volumes in bourses that were
open.
Japan's Nikkei Stock Average traded 0.2% higher in the
afternoon, undoing losses from the morning session and paring
Thursday's 0.4% retreat, which had followed a major jump of 2.3% on
Wednesday.
Outside of the very largest firms, Japanese equities showed more
solid gains, with the Topix -- which includes all large-cap shares
listed in Tokyo -- climbing 0.6%.
Losses for Wall Street overnight helped dampen sentiment earlier
in the day, as the S&P 500 (SPX) finished down 0.5% after a
Federal Reserve official tipped a pullback in the central bank's
easing programs could come as soon as this summer.
Real-estate shares were a strong spot for the Tokyo market, as
some major names rebounded from recent losses. Among them, Mitsui
Fudosan Co. (8801.TO) climbed 2.1%, Mitsubishi Estate Co. (MITEF)
added 2.2%, and Sumitomo Realty & Development Co. (8830.TO)
rallied 3.5%.
Utilities also traded higher, with Tokyo Electric Power Co.
(9501.TO), commonly known as Tepco, up 1.6% in choppy trade. Tepco
shares have now tripled in value since the start of the year,
though they remain well below their levels before the 2011
earthquake and tsunami caused a major disaster at the company's
Fukushima Daiichi nuclear power plant.
Also on the rise, Hitachi Ltd. (HIT) added 1.9% to its share
price after the conglomerate forecast earnings for the 2015-16
fiscal year that bested analyst expectations.
Shares of Renesas Electronics Corp. (RNECY) zoomed 7.8% higher.
Late Thursday, Renesas said it was teaming with a Belgian research
institute to develop communication technology featuring ultralow
power consumption, according to Kyodo News.
On the downside in Japan, Sony Corp. (SNE) dropped 1% after NPD
Group data late Thursday showed April U.S. videogame-console sales
plunging 42% from year-earlier levels as consumers awaited new
devices from Sony and rivals Microsoft Corp. (MSFT) and Nintendo
Co. (NTDOF). Shares of Nintendo traded 1.2% lower.
Some other tech majors saw weakness as well, with Pioneer Corp.
(6773.TO) falling 1.5%, Panasonic Corp. losing 1.2%, and Tokyo
Electron Ltd. (8035.TO) surrendering 2.6%, moving back near levels
seen at the start of the week.
Sydney, Shanghai improve
Over in Australia, the benchmark S&P/ASX 200 moved 0.5%
higher, helped by strength in some major mining and banking
names.
Senior miners BHP Billiton Ltd. (BHP) and Rio Tinto Ltd. (RIO)
added 2.4% and 1.3%, respectively, after a 0.9% advance for July
copper futures overnight. Uranium extractor Paladin Energy Ltd.
(PDN.T) rose 3.3%, while Fortescue Metals Group Ltd. (FSUMY) added
2.9%, though losses for gold futures helped drive Newcrest Mining
Ltd. (NCMGF) shares 1.9% lower.
"If commodity prices remain supported in the Asian trading
session, Australian stocks should hold near current levels and halt
recent weaknesses," wrote Rivkin global analyst Tim Radford just
ahead of the market open. The ASX 200 had ended Thursday with a
0.5% loss, after falling 0.6% on Wednesday.
Among financials, Commonwealth Bank of Australia (CBAUY) -- the
ASX 200's most heavily weighted component -- gained 0.8%, while
Australia & New Zealand Banking Group (ANEWF) improved by 1.5%
and insurer QBE Insurance Group Ltd. (QBIEY) rose 2.1%.
Shares of Virgin Australia Holdings Ltd. (VBHLF) jumped 8.4%
higher after a 17% crash in the previous session on the back of a
profit warning. Helping boost the airline operator, both UBS and
J.P. Morgan raised their ratings on the shares to buy and
overweight, respectively.
However, a profit warning at energy firm WorleyParsons Ltd.
(WOR.AU) sent that stock falling 9.1% in Sydney.
Likewise, retail major Wesfarmers Ltd. (WFAFY) warned of
"disappointing" results at its Target stores, with its shares
losing 3.1%. Target Australia is unrelated to the U.S. firm Target
Corp., though it uses the latter's "bullseye" logo.
Over in Shanghai, shares saw rangebound trade, with the Shanghai
Composite Index higher by 0.1% after opening 0.2% to the
downside.
Strength in the property majors helped support the market, with
Poly Real Estate Group Co. and Gemdale Corp. up 1.7% each.
Similarly, top mainland Chinese developer China Vanke Co. also saw
its shares gain 1.7% on the Shenzhen Stock Exchange.
The advance for real-estate came ahead of April home-price data,
due out Saturday. Noting March's 3.6% gain in home prices for the
70 top cities surveyed in the data, ING analysts said: "We think
increased monetary accommodation in the beginning of the year ...
kept home price inflation elevated."
Also positive for the sector, some investors are expecting the
Chinese government to loosen some of its restrictions on property
sales by the end of the year, Dow Jones Newswires quoted a Guotai
Junan Securities as saying.
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