By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Stocks in Japan and Hong Kong ended
with small losses after a choppy trading session Tuesday, as
investors pondered whether the U.S. Federal Reserve will maintain
its monthly bond purchases.
Mainland Chinese and South Korean shares rose after also
charting a volatile course that saw them change direction multiple
times.
Japan's Nikkei Stock Average and Australia's S&P/ASX 200
each slipped 0.2%, while Hong Kong's Hang Seng Index ended
fractionally lower.
On the upside, China's Shanghai Composite rose 0.1%, Taiwan's
Taiex gained 0.2% and South Korea's Kospi added 0.9%.
The performance in Asia was mixed despite a triple-digit point
gain for the Dow Jones Industrial Average (DJI) overnight.
Trading in the U.S. and other global markets has been volatile,
as investors remain focused on the Federal Open Market Committee
policy decision Wednesday, which investors are hoping will provide
clues on how long the Fed will maintain its $85-billion-a-month in
bond purchases.
"We expect this nervousness to continue to dominate until the
FOMC rate decision and Chairman [Ben] Bernanke's press conference
on Wednesday, with asset prices remaining vulnerable to news
headlines, keeping the volatility elevated," Barclays analysts
wrote to clients.
In Japan, broad losses in banks and telecommunication shares
weighed on the market after two days of gains for the benchmark
Nikkei Average. the broader Topix index ended the day 0.2%
higher.
Shares of Mitsubishi UFJ Financial Group Inc. (MTU) fell 0.5%,
Sumitomo Mitsui Financial Group Inc. (SMFJY) declined 0.6% and KDDI
Corp. (9433.TO) lost 1.3%.
Even so, the market found support as some real-estate, insurance
and brokerage stocks climbed alongside a few major exporters in the
wake of the higher finish on Wall Street.
Mitsubishi Estate Co. (MITEY) rose 2%, Nomura Holdings Inc.
(NMR) climbed 2.1% and MS&AD Insurance Group Holdings Inc.
added 2.6%, finding buyers after steep losses suffered earlier in
the month.
Shares of Sony Corp. (SNE) jumped 4.4% after a hedge-fund run by
billionaire Daniel Loeb, which has called on the company to spin
off its entertainment business, increased its stake in the
firm.
Toyota Motor Corp. (TM) added 1.8% on reports the auto giant has
raised its Japan sales target.
Sharp Corp. (SHCAY) gained 1.2% after the Asahi Shimbun reported
the company was considering producing photocopiers for Samsung
Electronics Co. (SSNLF), with a fresh investment from Samsung
potentially a part of the deal.
Shares of market heavyweight Samsung rose 1.5% in Seoul, aiding
gains for the Kospi.
Property stocks fell in Hong Kong but advanced on mainland
Chinese bourses after official data showed home prices rose in a
vast majority of the Chinese cities surveyed in May. According to
Dow Jones Newswires calculations, the average home price increased
0.86% from the level in April, and was 5.32% higher than in May
2012.
China Overseas Land & Investment Ltd. (CAOVY) fell 1.7%, and
China Resources Land Ltd. (CRBJF) dropped 1.2% in Hong Kong.
However, Gemdale Corp. gained 2.6% in Shanghai, and the
yuan-denominated A-shares of China Vanke Co. added 1.1% in
Shenzhen.
"The fact that the monthly data doesn't show significant rises
should mean that we are unlikely to get new [property-sector] curbs
in the short term. But it also means that we are not likely to get
any [policy] easing," said Andrew Sullivan, director of sales
trading at Kim Eng Securities. He said the price trends represented
a slightly negative data point for the sector.
Shares of major Chinese banks rose on mainland bourses following
news that state-owned investment agency Central Huijin Investment
Co. has increased its stakes in the four largest state-owned
lenders.
The Shanghai-listed Industrial & Commercial Bank of China
Ltd. (IDCBY) added 1% and China Construction Bank Corp. (CICHY)
climbed 0.4%.
In Sydney, banks and retailers ended mostly lower, even as
minutes from the Reserve Bank of Australia's last meeting showed
the central bank was ready to cut interest rates further, if need
be.
National Australia Bank Ltd. (NABZY) dropped 1.5%, while
Woolworths Ltd. (WOLWF) declined 1%.
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