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July 11, 2013, 4:55 a.m. EDT

China stocks soar, as Asia rallies

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By V. Phani Kumar, MarketWatch

HONG KONG (MarketWatch) — Asian stocks rallied Thursday after Federal Reserve Chairman Ben Bernanke said U.S. interest rates will remain low to aid economic recovery, with gold miners posting hefty gains on an increase in commodity prices.

Mainland Chinese stocks led the jump on speculation Beijing may act to stabilize economic growth, with the Shanghai Composite Index /zigman2/quotes/210598127/delayed CN:SHCOMP +1.60% soaring 3.2% for its best percentage gain so far this year. The advance came on top of a 2.2% rise on Wednesday.


Reuters Enlarge Image
Fed Chairman Ben Bernanke’s remarks on interest rates lift Asia markets. (Pictured: People walk along a busy street at Pudong financial district in Shanghai.)

“I think emerging markets were doing pretty awfully. What we’re seeing is a reversion trade as a weaker dollar is net positive,” said Ben Collett, head of Asian equities at Sunrise Brokers. “In China, the markets are telling us that we are close to some sort of intervention.”

Meanwhile, Nomura economist Zhiwei Zhang wrote in a note to clients that the tone in a speech made by Premier Li Keqiang on Tuesday — in which he mentioned the need to stabilize growth — suggested Beijing’s policy stance may soften in the second half of 2013.

The Shanghai Composite is among the worst performing major benchmarks in Asia so far in 2013, having dropped 8.6% from last year’s close, amid worries that Beijing’s reluctance to provide additional fiscal or monetary stimulus would deepen an economic slowdown.

Also posting solid gains, South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 +1.81%  jumped 2.9% after the Bank of Korea left its policy interest rate unchanged. Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI +2.96% gained 2.6%, and Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +1.15%  climbed 1.3%.

The Nikkei Stock Average /zigman2/quotes/210597971/delayed JP:NIK +1.27%  added 0.4% in Tokyo after the Bank of Japan cut its growth and inflation forecasts, and refrained from adding fresh stimulus, saying the domestic economy was starting to “recover moderately.” The higher finish came after a volatile trading session that saw the benchmark change direction multiple times during the session.

The performance in the regional stocks tracked an increase in U.S. equity index futures after Bernanke’s remarks, while the ICE dollar index /zigman2/quotes/210598269/delayed DXY +0.29%  tumbled.

“The reactions of the market are fairly intense to small Fed nuances, an indication of some fundamental instability or great uncertainty in the market,” said Société Générale currency strategist Sebastien Galy.

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“‘Helicopter Ben’ is generally good for equities and bad for the U.S. dollar, so we have a good idea of the short-term reaction until we hit another bout of very decent U.S. data,” Galy said.

Resource stocks posted solid gains after commodity prices rallied overnight.

Shares of gold miners were particularly upbeat after the precious metal’s futures rose for a third straight day. Newcrest Mining Ltd. /zigman2/quotes/203840223/delayed AU:NCM +2.57% /zigman2/quotes/203286036/delayed NCMGY +0.06%  soared 11.6%, and Perseus Mining Ltd. /zigman2/quotes/205179925/delayed AU:PRU +3.43%   /zigman2/quotes/202190906/delayed PMNXF +3.21%  surged 23.7% in Sydney, while Zijin Mining Group Co. /zigman2/quotes/204517000/delayed HK:2899 +4.02%   /zigman2/quotes/203833875/delayed CN:601899 +3.09% /zigman2/quotes/209836076/delayed ZIJMF +2.65% stock rose 5.3% in Hong Kong and 0.6% in Shanghai.

Among the region’s oil producers, Inpex Corp. /zigman2/quotes/206689846/delayed JP:1605 -0.59% /zigman2/quotes/206936121/delayed IPXHF -2.27% climbed 2% in Tokyo and Woodside Petroleum Ltd. /zigman2/quotes/203437212/delayed AU:WPL -3.75%   /zigman2/quotes/206334215/delayed WOPEY -4.14%  rose 1.6% in Sydney. Cnooc Ltd. /zigman2/quotes/203421416/delayed HK:883 +2.96%  jumped 4.1% in Hong Kong and heavyweight PetroChina Co. /zigman2/quotes/204979431/delayed HK:857 +2.09%   /zigman2/quotes/205108732/composite PTR +1.69%  climbed 2.7% in Shanghai.

The gains came as U.S. benchmark crude-oil futures /zigman2/quotes/209725769/delayed CLQ23 -0.13% topped $107 a barrel during the Asian trading day, after settling at their highest level in 15 months overnight in New York.

Financials were among the biggest gainers on mainland bourses, with Industrial Bank Co. /zigman2/quotes/209353019/delayed CN:601166 +2.13%  and Sinolink Securities Co. /zigman2/quotes/205648937/delayed CN:600109 +1.48%  soaring by the day’s limit of around 10% in Shanghai, while Hong Yuan Securities Co.  and Ping An Bank Co. /zigman2/quotes/206600939/delayed CN:000001 +2.74%  also rose 10% in Shenzhen.

/zigman2/quotes/210598127/delayed SHCOMP 3,146.57, +49.60, +1.60%
/zigman2/quotes/210598069/delayed 180721 2,639.29, +46.95, +1.81%
/zigman2/quotes/210598065/realtime DJIA 31,261.90, +8.77, +0.03%
Year-to-date percentage changes
Shanghai Composite and Kospi Vs. Dow Jones Industrial Average

Property developers and financials also rallied in Hong Kong. Sino Land Co. /zigman2/quotes/202960683/delayed HK:83 +1.61% /zigman2/quotes/206858840/delayed SNLAY +0.99%  climbed 3.2% and China Resources Land Ltd. /zigman2/quotes/202417326/delayed HK:1109 +1.57%   /zigman2/quotes/201656413/delayed CRBJF +2.07%  soared 6.6%, while China Life Insurance Co. /zigman2/quotes/202359856/delayed HK:2628 +2.12% /zigman2/quotes/206573290/composite LFC 0.00% gained 6.4%.

Hong Kong property developers tend to benefit from increased demand amid low interest rates in the U.S., given that rates in the territory — which pegs its currency to the U.S. dollar /zigman2/quotes/210562005/realtime/sampled USDHKD -0.0038% — move in lock-step with the federal funds rate.

Technology and steel shares jumped in Seoul, with heavyweight Samsung Electronics Co. /zigman2/quotes/209800866/delayed KR:005930 +0.74% /zigman2/quotes/202367843/delayed SSNLF +30.66%  rising 5.1%, and Hyundai Steel Co. /zigman2/quotes/203290957/delayed KR:004020 +1.77% climbing 5.4%.

In Tokyo, several exporters weakened on the yen’s /zigman2/quotes/210561789/realtime/sampled USDJPY +0.0477% strength, as the dollar lost hold of the ¥100 level and dropped as low as ¥98.23 after the Bank of Japan meeting outcome.

Toshiba Corp. /zigman2/quotes/205628942/delayed JP:6502 +0.58%   /zigman2/quotes/204149068/delayed TOSYY +0.42%  dropped 1.9%, Nikon Corp. /zigman2/quotes/203281219/delayed JP:7731 +1.83%   /zigman2/quotes/209396469/delayed NINOY +2.18%  lost 3.7%, and Canon Inc. /zigman2/quotes/207639533/delayed JP:7751 -0.65%   /zigman2/quotes/210242912/composite CAJ -0.08%  shed 1.5%.

/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,146.57
+49.60 +1.60%
Volume: 37.23B
May 20, 2022 3:00p
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/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,639.29
+46.95 +1.81%
Volume: 755,652
May 20, 2022 3:30p
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/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
20,717.24
+596.56 +2.96%
Volume: 2.17M
May 20, 2022 4:08p
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/zigman2/quotes/210598100/delayed
AU : S&P ASX
7,145.60
+81.10 +1.15%
Volume: 698,129
May 20, 2022 5:07p
loading...
/zigman2/quotes/210597971/delayed
JP : Nikkei
26,739.03
+336.19 +1.27%
Volume: 0.00
May 20, 2022 3:15p
loading...
/zigman2/quotes/210598269/delayed
US : U.S.: ICE Futures U.S.
103.03
+0.30 +0.29%
Volume: 0.00
May 20, 2022 4:59p
loading...
/zigman2/quotes/203840223/delayed
AU : Australia: Sydney
$ 25.57
+0.64 +2.57%
Volume: 3.77M
May 20, 2022 4:10p
P/E Ratio
17.48
Dividend Yield
2.63%
Market Cap
$22.20 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/203286036/delayed
US : U.S.: OTC
$ 18.01
+0.01 +0.06%
Volume: 66,019
May 20, 2022 3:59p
P/E Ratio
16.61
Dividend Yield
2.48%
Market Cap
$15.66 billion
Rev. per Employee
N/A
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/zigman2/quotes/205179925/delayed
AU : Australia: Sydney
$ 1.81
+0.06 +3.43%
Volume: 4.46M
May 20, 2022 4:10p
P/E Ratio
11.81
Dividend Yield
0.45%
Market Cap
$2.16 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/202190906/delayed
US : U.S.: OTC
$ 1.27
+0.04 +3.21%
Volume: 2,513
May 20, 2022 3:31p
P/E Ratio
11.07
Dividend Yield
0.47%
Market Cap
$1.52 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/204517000/delayed
HK : Hong Kong
$ 10.36
+0.40 +4.02%
Volume: 24.48M
May 20, 2022 4:08p
P/E Ratio
11.60
Dividend Yield
2.25%
Market Cap
$289.14 billion
Rev. per Employee
$6.09M
loading...
/zigman2/quotes/203833875/delayed
CN : China: Shanghai
¥ 10.02
+0.30 +3.09%
Volume: 303.77M
May 20, 2022 3:00p
P/E Ratio
13.63
Dividend Yield
2.00%
Market Cap
¥249.35 billion
Rev. per Employee
¥5.05M
loading...
/zigman2/quotes/209836076/delayed
US : U.S.: OTC
$ 1.29
+0.03 +2.65%
Volume: 7,531
May 20, 2022 3:55p
P/E Ratio
11.28
Dividend Yield
N/A
Market Cap
$36.84 billion
Rev. per Employee
$783,268
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/zigman2/quotes/206689846/delayed
JP : Japan: Tokyo
¥ 1,526.00
-9.00 -0.59%
Volume: 9.12M
May 20, 2022 3:00p
P/E Ratio
9.92
Dividend Yield
3.54%
Market Cap
¥2125.29 billion
Rev. per Employee
¥390.21M
loading...
/zigman2/quotes/206936121/delayed
US : U.S.: OTC
$ 11.61
-0.27 -2.27%
Volume: 2,200
May 16, 2022 1:52p
P/E Ratio
8.35
Dividend Yield
N/A
Market Cap
$15.79 billion
Rev. per Employee
$3.55M
loading...
/zigman2/quotes/203437212/delayed
AU : Australia: Sydney
$ 28.77
-1.12 -3.75%
Volume: 10.94M
May 20, 2022 4:10p
P/E Ratio
10.40
Dividend Yield
6.51%
Market Cap
$29.35 billion
Rev. per Employee
$2.52M
loading...
/zigman2/quotes/206334215/delayed
US : U.S.: OTC
$ 20.36
-0.88 -4.14%
Volume: 56,223
May 20, 2022 3:58p
P/E Ratio
9.76
Dividend Yield
6.43%
Market Cap
$20.70 billion
Rev. per Employee
$1.89M
loading...
/zigman2/quotes/203421416/delayed
HK : Hong Kong
$ 11.14
+0.32 +2.96%
Volume: 118.84M
May 20, 2022 4:08p
P/E Ratio
5.87
Dividend Yield
2.69%
Market Cap
$495.06 billion
Rev. per Employee
$15.38M
loading...
/zigman2/quotes/204979431/delayed
HK : Hong Kong
$ 3.91
+0.08 +2.09%
Volume: 101.94M
May 20, 2022 4:08p
P/E Ratio
7.54
Dividend Yield
6.81%
Market Cap
$1045.90 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/205108732/composite
US : U.S.: NYSE
$ 50.01
+0.83 +1.69%
Volume: 99,554
May 20, 2022 4:00p
P/E Ratio
6.41
Dividend Yield
6.26%
Market Cap
$133.28 billion
Rev. per Employee
$856,986
loading...
/zigman2/quotes/209725769/delayed
US : U.S.: Nymex
$ 86.73
-0.11 -0.13%
Volume: 339.00
May 20, 2022 4:05p
loading...
/zigman2/quotes/209353019/delayed
CN : China: Shanghai
¥ 19.69
+0.41 +2.13%
Volume: 102.48M
May 20, 2022 3:00p
P/E Ratio
4.73
Dividend Yield
5.26%
Market Cap
¥400.53 billion
Rev. per Employee
¥6.32M
loading...
/zigman2/quotes/205648937/delayed
CN : China: Shanghai
¥ 8.21
+0.12 +1.48%
Volume: 27.87M
May 20, 2022 3:00p
P/E Ratio
12.63
Dividend Yield
0.85%
Market Cap
¥30.13 billion
Rev. per Employee
¥1.71M
loading...
/zigman2/quotes/206600939/delayed
CN : China: Shenzhen
¥ 15.02
+0.40 +2.74%
Volume: 94.86M
May 20, 2022 3:00p
P/E Ratio
7.46
Dividend Yield
1.52%
Market Cap
¥283.71 billion
Rev. per Employee
¥6.67M
loading...
/zigman2/quotes/202960683/delayed
HK : Hong Kong
$ 11.36
+0.18 +1.61%
Volume: 6.95M
May 20, 2022 4:08p
P/E Ratio
6.69
Dividend Yield
4.93%
Market Cap
$86.29 billion
Rev. per Employee
$4.45M
loading...
/zigman2/quotes/206858840/delayed
US : U.S.: OTC
$ 7.13
+0.07 +0.99%
Volume: 75.00
May 18, 2022 3:46p
P/E Ratio
6.52
Dividend Yield
4.59%
Market Cap
$11.00 billion
Rev. per Employee
$572,581
loading...
/zigman2/quotes/202417326/delayed
HK : Hong Kong
$ 35.55
+0.55 +1.57%
Volume: 10.78M
May 20, 2022 4:08p
P/E Ratio
6.49
Dividend Yield
4.76%
Market Cap
$249.58 billion
Rev. per Employee
$5.18M
loading...
/zigman2/quotes/201656413/delayed
US : U.S.: OTC
$ 4.43
+0.09 +2.07%
Volume: 2,500
May 19, 2022 9:46a
P/E Ratio
6.28
Dividend Yield
N/A
Market Cap
$31.80 billion
Rev. per Employee
$666,958
loading...
/zigman2/quotes/202359856/delayed
HK : Hong Kong
$ 11.56
+0.24 +2.12%
Volume: 17.60M
May 20, 2022 4:08p
P/E Ratio
5.34
Dividend Yield
6.61%
Market Cap
$676.31 billion
Rev. per Employee
$9.84M
loading...
/zigman2/quotes/206573290/composite
US : U.S.: NYSE
$ 7.28
0.00 0.00%
Volume: 912,562
May 20, 2022 4:00p
P/E Ratio
7.03
Dividend Yield
5.82%
Market Cap
$86.18 billion
Rev. per Employee
$1.24M
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/zigman2/quotes/210562005/realtime/sampled
US : Tullett Prebon
7.8475
-0.0003 -0.0038%
Volume: 0.0000
May 20, 2022 4:59p
loading...
/zigman2/quotes/209800866/delayed
KR : S. Korea: KRX
68,000.00
+500.00 +0.74%
Volume: 12.11M
May 20, 2022 3:30p
P/E Ratio
11.77
Dividend Yield
2.12%
Market Cap
₩452415.83 billion
Rev. per Employee
₩2.46B
loading...
/zigman2/quotes/202367843/delayed
US : U.S.: OTC
$ 57.75
+13.55 +30.66%
Volume: 0.00
Oct. 13, 2021 4:28p
P/E Ratio
11.47
Dividend Yield
N/A
Market Cap
$388.10 billion
Rev. per Employee
$2.15M
loading...
/zigman2/quotes/203290957/delayed
KR : S. Korea: KRX
40,150.00
+700.00 +1.77%
Volume: 368,187
May 20, 2022 3:30p
P/E Ratio
3.61
Dividend Yield
2.49%
Market Cap
₩5189.48 billion
Rev. per Employee
₩2.17B
loading...
/zigman2/quotes/210561789/realtime/sampled
US : Tullett Prebon
127.8780
+0.0610 +0.0477%
Volume: 0.0000
May 20, 2022 4:59p
loading...
/zigman2/quotes/205628942/delayed
JP : Japan: Tokyo
¥ 5,552.00
+32.00 +0.58%
Volume: 2.31M
May 20, 2022 3:00p
P/E Ratio
13.34
Dividend Yield
5.22%
Market Cap
¥2388.27 billion
Rev. per Employee
¥28.22M
loading...
/zigman2/quotes/204149068/delayed
US : U.S.: OTC
$ 21.61
+0.09 +0.42%
Volume: 30,685
May 20, 2022 3:52p
P/E Ratio
11.38
Dividend Yield
3.36%
Market Cap
$18.75 billion
Rev. per Employee
$257,455
loading...
/zigman2/quotes/203281219/delayed
JP : Japan: Tokyo
¥ 1,502.00
+27.00 +1.83%
Volume: 2.72M
May 20, 2022 3:00p
P/E Ratio
19.84
Dividend Yield
2.66%
Market Cap
¥541.62 billion
Rev. per Employee
¥27.32M
loading...
/zigman2/quotes/209396469/delayed
US : U.S.: OTC
$ 11.71
+0.25 +2.18%
Volume: 11,522
May 20, 2022 3:51p
P/E Ratio
17.48
Dividend Yield
1.61%
Market Cap
$4.25 billion
Rev. per Employee
$248,756
loading...
/zigman2/quotes/207639533/delayed
JP : Japan: Tokyo
¥ 3,192.00
-21.00 -0.65%
Volume: 5.08M
May 20, 2022 3:00p
P/E Ratio
15.44
Dividend Yield
3.13%
Market Cap
¥3360.06 billion
Rev. per Employee
¥19.29M
loading...
/zigman2/quotes/210242912/composite
US : U.S.: NYSE
$ 25.03
-0.02 -0.08%
Volume: 238,101
May 20, 2022 4:00p
P/E Ratio
13.58
Dividend Yield
2.88%
Market Cap
$26.38 billion
Rev. per Employee
$171,670
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Varahabhotla Phani Kumar is a reporter in MarketWatch's Hong Kong bureau. Follow him on Twitter @MktwKumar.

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