By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Hong Kong stocks climbed Friday after
Chinese data showing consumer prices rose at a slower-than-expected
rate in July, while Japanese shares climbed as a rebound on Wall
Street helped lift several beaten-down issues after heavy recent
losses.
Hong Kong's Hang Seng Index rose 0.3%, and Australia's
S&P/ASX 200 pared early losses but was still down 0.4%. The
Shanghai Composite was flat in choppy trading.
Official data released Friday showed July consumer prices in
China rose 2.7%, matching the rate in June but slightly weaker than
expectations. Producer prices dropped 2.3%, after witnessing a 2.7%
slide in June.
"It seems that the government's campaign to deflate a potential
housing bubble is having an effect. House-price growth is cooling,
and this is reducing demand for furniture, electronics and other
household goods," said Moody's Analytics economist Alaistair
Chan.
"We expect inflation to remain under the government's 3.5%
target for 2013. Aggregate demand in China is still below trend,
due to a lack of policy accommodation," Chan said.
Meanwhile, Japan's Nikkei Stock Average rose 0.6%, paring its
loss for the week to about 5.4%, while South Korea's Kospi inched
up 0.2%.
Later on Friday, China was set to report more monthly economic
data, including the July industrial production and retail sales
figures.
"We feel even just consensus readings on China data will be
enough to satisfy investors and promote the recovery," said IG
Markets strategist Stan Shamu. He said that better-than-expected
Chinese trade figures for July, released Thursday, had helped
improve sentiment in global markets.
U.S. stocks rebounded Thursday to snap a three-day losing streak
after the Chinese trade data, with the action also driven by
further consideration of the Federal Reserve's outlook for its
monthly bond purchases.
Major movers
Energy-sector shares gained in Hong Kong, with China Coal Energy
Co. (CCOZY) rising 2.6%, while Kunlun Energy Co. (CNPXF) added
2.2%, also helped by Citigroup's upgrade of the stock's rating to
buy.
In Shanghai, losses for property and financial stocks weighed on
the market. Shares in Poly Real Estate Group Co. dropped 1.2%, and
those in Haitong Securities Co. gave up 0.9%.
In Tokyo on Friday, shares of Mitsubishi Material Corp. (MIMTF)
climbed 7.5%, Softbank Corp. (9984.TO) gained 1.8%, and Trend Micro
Inc. (TMICY) added 1.4%.
On the downside, Nikon Corp. (NINOY) plunged 15% after its weak fiscal first-quarter results.
In Sydney, diversified miner BHP Billiton Ltd. (BHP) gained 2%,
and rival Rio Tinto Ltd. (RIO) added 1.7%, while gold company
Newcrest Mining Ltd. (NCMGF) leapt 3.4%.
But losses in the financial and retail sectors weighed on the
market, with Commonwealth Bank of Australia (CBAUY) losing 0.5%,
and Wesfarmers Ltd. (WFAFY) shedding 1%.
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