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July 2, 2013, 1:30 a.m. EDT

Australia, Japan stocks rally; China slips

Sydney market gets boost from central-bank rate call

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By V. Phani Kumar, MarketWatch

HONG KONG (MarketWatch) — Japanese and Australian stocks rose Tuesday after upbeat manufacturing reports from the U.S. and the euro zone, while Hong Kong shares retreated on weakened activity at Chinese factories.

Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -2.33%  rose 2.3%, extending gains after the central bank held rates steady. Japan’s Nikkei Stock Average /zigman2/quotes/210597971/delayed JP:NIK -0.82%  climbed 1%, and Singapore’s Straits Times Index /zigman2/quotes/210597985/delayed SG:STI -1.65%  added 0.9%.

Their gains came as stocks on Wall Street ended higher after the Institute for Supply Management reported an increase in its manufacturing index, and the euro-zone’s Purchasing Managers’ Index (PMI) for June climbed to a 16-month high.


Tokyo Stock Exchange Enlarge Image
Japan stocks head for their fourth straight day of gains.

“These are good signs for the world’s two largest-consuming regions. The fact Europe looks like normalizing and could emerge from what is a record-long recession for the region will be a massive benefit the global economy,” said IG Markets strategist Evan Lucas.

The U.S. and euro-zone manufacturing reports follow the Bank of Japan’s quarterly tankan survey Monday, showing a sharp improvement in confidence at large Japanese businesses, although two separate PMI surveys on China maintained their downtrend.

Meanwhile, Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI -2.19%  fell 0.3%, and South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 -0.04% slipped 0.2%, while the Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP -0.57%  gave up 0.4%.

Banks and property developers declined in Hong Kong after the China PMI releases, with China Construction Bank Corp. /zigman2/quotes/208974133/delayed HK:939 -2.05% /zigman2/quotes/207732534/delayed CICHY -3.83%  losing 3.3%, and China Overseas Land & Investment Ltd. /zigman2/quotes/205731176/delayed HK:688 -0.42%   /zigman2/quotes/202573805/delayed CAOVY -1.07% sliding 2%.

PMI data from Taiwan and South Korea also indicated a further deterioration in their respective manufacturing sectors on Monday.

“The June PMIs for emerging Asia suggest the region’s manufacturing sectors continue to struggle. ... We think fragile global demand will make life difficult for Asia’s manufacturers, at least until the end of the year,” said Kyrstal Tan, Asia economist at Capital Economics.

An overnight increase in prices of gold, copper and crude-oil aided shares of commodity producers around the region.

Gold miner Newcrest Mining Ltd. /zigman2/quotes/203840223/delayed AU:NCM +2.65%   /zigman2/quotes/203286036/delayed NCMGY +6.36% jumped 5.9%, and energy producer Santos Ltd. /zigman2/quotes/207349564/delayed AU:STO +2.67% /zigman2/quotes/207933640/delayed STOSF +6.97%  gained 4.9% in Sydney, while Sumitomo Metal Mining Co. /zigman2/quotes/205273301/delayed JP:5713 -0.71% /zigman2/quotes/203832662/delayed STMNF -14.39%  soared 3.8% in Tokyo.

In Hong Kong, shares of PetroChina Co. /zigman2/quotes/204979431/delayed HK:857 -1.76%   /zigman2/quotes/205108732/lastsale PTR -1.81%  leapt 5.6%, getting an extra lift from news that China’s economic planning agency has raised the government-set wholesale prices of natural gas by about 15%.

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Australian financial rose after Monday’s losses, extending gains after the Reserve Bank of Australia left rates unchanged Tuesday as most economists expected.

Commonwealth Bank of Australia /zigman2/quotes/200638713/delayed AU:CBA -4.52%   /zigman2/quotes/207018701/delayed CBAUF -1.43% and Australia & New Zealand Banking Group /zigman2/quotes/205482049/delayed AU:ANZ -5.34%   /zigman2/quotes/203732563/delayed ANZBY -3.64%  gained 1.5% each, though still underperforming the broader market. But insurers did even better, with Insurance Australia Group Ltd. /zigman2/quotes/208644377/delayed AU:IAG -3.85%   /zigman2/quotes/204018676/delayed IAUGF -29.03%  up 4.2% and QBE Insurance Group Ltd. /zigman2/quotes/207050271/delayed AU:QBE -6.21%   /zigman2/quotes/201857553/delayed QBEIF -25.13%  rising 3.1%.

Several Japanese exporters were also spurred as the U.S. dollar /zigman2/quotes/210561789/realtime/sampled USDJPY +0.0532%  stuck close to the 100-yen level amid expectations the greenback may soon return above the psychologically important level.

“Based on the direction of monetary policy, we feel that [the dollar’s rate against the yen] should revisit its highs,” said BK Asset Management managing director Kathy Lien.

“If U.S. [Treasury] yields continue to rise, Japanese companies will start to reduce their hedges as the cost to maintain these positions rise, which is another factor that could drive [the dollar] back to its 2013 high” against the yen, she said.

Shares of Hitachi Ltd. /zigman2/quotes/203839937/delayed JP:6501 -3.95%   /zigman2/quotes/200140010/delayed HTHIY -3.43%  rose 4.9%, Canon Inc. /zigman2/quotes/207639533/delayed JP:7751 -0.72%   /zigman2/quotes/210242912/lastsale CAJ -4.90%  added 3.1%, and Subaru-maker Fuji Heavy Industries Ltd. /zigman2/quotes/203522406/delayed JP:7270 -4.64% /zigman2/quotes/200526066/delayed FUJHY -3.30% rose 1.6%.

/zigman2/quotes/210598100/delayed
AU : S&P ASX
5,136.10
-122.50 -2.33%
Volume: 247,986
April 2, 2020 11:23a
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/zigman2/quotes/210597971/delayed
JP : Nikkei
17,917.21
-148.20 -0.82%
Volume: 0.00
April 2, 2020 9:23a
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/zigman2/quotes/210597985/delayed
SG : Singapore: SGX
2,440.27
-40.96 -1.65%
Volume: 0.00
April 1, 2020 5:20p
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/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
23,085.79
-517.69 -2.19%
Volume: 2.88M
April 1, 2020 4:08p
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/zigman2/quotes/210598069/delayed
KR : Korea Exchange
1,684.73
-0.73 -0.04%
Volume: 167,792
April 2, 2020 9:23a
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/zigman2/quotes/210598127/delayed
CN : China: Shanghai
2,734.52
-15.77 -0.57%
Volume: 21.73B
April 1, 2020 3:01p
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/zigman2/quotes/208974133/delayed
HK : Hong Kong
HK$ 6.21
-0.13 -2.05%
Volume: 353.66M
April 1, 2020 4:08p
P/E Ratio
5.19
Dividend Yield
5.62%
Market Cap
HK$1585.07 billion
Rev. per Employee
HK$3.31M
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/zigman2/quotes/207732534/delayed
US : U.S.: OTC
$ 15.57
-0.62 -3.83%
Volume: 161,251
April 1, 2020 3:59p
P/E Ratio
10.64
Dividend Yield
4.84%
Market Cap
$1966.49 billion
Rev. per Employee
$422,749
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/zigman2/quotes/205731176/delayed
HK : Hong Kong
HK$ 23.95
-0.10 -0.42%
Volume: 18.57M
April 1, 2020 4:08p
P/E Ratio
N/A
Dividend Yield
4.26%
Market Cap
HK$263.50 billion
Rev. per Employee
HK$30.79M
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/zigman2/quotes/202573805/delayed
US : U.S.: OTC
$ 15.16
-0.16 -1.07%
Volume: 15,530
April 1, 2020 3:48p
P/E Ratio
5.59
Dividend Yield
3.37%
Market Cap
$33.99 billion
Rev. per Employee
$3.93M
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/zigman2/quotes/203840223/delayed
AU : Australia: Sydney
$ 24.02
+0.62 +2.65%
Volume: 509,500
April 2, 2020 11:23a
P/E Ratio
23.06
Dividend Yield
1.37%
Market Cap
$17.69 billion
Rev. per Employee
N/A
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/zigman2/quotes/203286036/delayed
US : U.S.: OTC
$ 14.55
+0.87 +6.36%
Volume: 221,029
April 1, 2020 3:58p
P/E Ratio
20.01
Dividend Yield
1.33%
Market Cap
$10.83 billion
Rev. per Employee
N/A
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/zigman2/quotes/207349564/delayed
AU : Australia: Sydney
$ 3.85
+0.10 +2.67%
Volume: 3.87M
April 2, 2020 11:23a
P/E Ratio
8.36
Dividend Yield
4.27%
Market Cap
$7.11 billion
Rev. per Employee
$2.29M
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/zigman2/quotes/207933640/delayed
US : U.S.: OTC
$ 2.36
+0.15 +6.97%
Volume: 26,941
April 1, 2020 10:05a
P/E Ratio
7.36
Dividend Yield
N/A
Market Cap
$4.41 billion
Rev. per Employee
$1.71M
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/zigman2/quotes/205273301/delayed
JP : Japan: Tokyo
¥ 2,174.00
-15.50 -0.71%
Volume: 208,100
April 2, 2020 9:23a
P/E Ratio
11.63
Dividend Yield
3.13%
Market Cap
¥609.47 billion
Rev. per Employee
¥134.46M
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/zigman2/quotes/203832662/delayed
US : U.S.: OTC
$ 24.40
-4.10 -14.39%
Volume: 1,200
April 1, 2020 5:20p
P/E Ratio
14.18
Dividend Yield
N/A
Market Cap
$6.70 billion
Rev. per Employee
$1.22M
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/zigman2/quotes/204979431/delayed
HK : Hong Kong
HK$ 2.79
-0.05 -1.76%
Volume: 256.01M
April 1, 2020 4:08p
P/E Ratio
9.82
Dividend Yield
5.62%
Market Cap
HK$519.78 billion
Rev. per Employee
HK$5.32M
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/zigman2/quotes/205108732/lastsale
US : U.S.: NYSE
$ 35.35
-0.65 -1.81%
Volume: 209,931
April 1, 2020 6:30p
P/E Ratio
29.35
Dividend Yield
4.78%
Market Cap
$7.60 billion
Rev. per Employee
$678,384
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/zigman2/quotes/200638713/delayed
AU : Australia: Sydney
$ 60.79
-2.88 -4.52%
Volume: 2.23M
April 2, 2020 11:23a
P/E Ratio
11.20
Dividend Yield
7.09%
Market Cap
$109.39 billion
Rev. per Employee
$919,022
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/zigman2/quotes/207018701/delayed
US : U.S.: OTC
$ 38.12
-0.55 -1.43%
Volume: 55,065
April 1, 2020 3:15p
P/E Ratio
10.13
Dividend Yield
N/A
Market Cap
$68.42 billion
Rev. per Employee
$687,071
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/zigman2/quotes/205482049/delayed
AU : Australia: Sydney
$ 16.14
-0.91 -5.34%
Volume: 4.02M
April 2, 2020 11:23a
P/E Ratio
8.03
Dividend Yield
13.52%
Market Cap
$48.10 billion
Rev. per Employee
$908,476
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/zigman2/quotes/203732563/delayed
US : U.S.: OTC
$ 10.07
-0.38 -3.64%
Volume: 154,510
April 1, 2020 3:57p
P/E Ratio
7.11
Dividend Yield
10.79%
Market Cap
$29.44 billion
Rev. per Employee
$690,358
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/zigman2/quotes/208644377/delayed
AU : Australia: Sydney
$ 6.00
-0.24 -3.85%
Volume: 1.77M
April 2, 2020 11:23a
P/E Ratio
16.52
Dividend Yield
6.50%
Market Cap
$14.33 billion
Rev. per Employee
N/A
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/zigman2/quotes/204018676/delayed
US : U.S.: OTC
$ 3.20
-1.31 -29.03%
Volume: 14,645
April 1, 2020 5:20p
P/E Ratio
12.60
Dividend Yield
N/A
Market Cap
$7.70 billion
Rev. per Employee
N/A
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/zigman2/quotes/207050271/delayed
AU : Australia: Sydney
$ 8.31
-0.55 -6.21%
Volume: 875,289
April 2, 2020 11:23a
P/E Ratio
13.53
Dividend Yield
7.45%
Market Cap
$11.25 billion
Rev. per Employee
$1.33M
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/zigman2/quotes/201857553/delayed
US : U.S.: OTC
$ 7.00
-2.35 -25.13%
Volume: 13,819
April 1, 2020 5:20p
P/E Ratio
16.23
Dividend Yield
N/A
Market Cap
$6.96 billion
Rev. per Employee
$990,122
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/zigman2/quotes/210561789/realtime/sampled
US : Tullett Prebon
107.2220
+0.0570 +0.0532%
Volume: 0.0000
April 1, 2020 8:43p
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/zigman2/quotes/203839937/delayed
JP : Japan: Tokyo
¥ 2,953.50
-121.50 -3.95%
Volume: 1.10M
April 2, 2020 9:23a
P/E Ratio
14.65
Dividend Yield
3.05%
Market Cap
¥3036.88 billion
Rev. per Employee
¥30.84M
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/zigman2/quotes/200140010/delayed
US : U.S.: OTC
$ 55.48
-1.97 -3.43%
Volume: 100,995
April 1, 2020 3:58p
P/E Ratio
15.13
Dividend Yield
2.58%
Market Cap
$28.13 billion
Rev. per Employee
$279,568
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/zigman2/quotes/207639533/delayed
JP : Japan: Tokyo
¥ 2,216.50
-16.00 -0.72%
Volume: 966,700
April 2, 2020 9:23a
P/E Ratio
18.96
Dividend Yield
7.22%
Market Cap
¥2509.58 billion
Rev. per Employee
¥19.98M
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/zigman2/quotes/210242912/lastsale
US : U.S.: NYSE
$ 20.58
-1.06 -4.90%
Volume: 426,969
April 1, 2020 6:30p
P/E Ratio
14.94
Dividend Yield
6.10%
Market Cap
$23.02 billion
Rev. per Employee
$180,925
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/zigman2/quotes/203522406/delayed
JP : Japan: Tokyo
¥ 1,920.00
-93.50 -4.64%
Volume: 1.09M
April 2, 2020 9:23a
P/E Ratio
10.42
Dividend Yield
7.50%
Market Cap
¥1589.99 billion
Rev. per Employee
¥95.93M
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/zigman2/quotes/200526066/delayed
US : U.S.: OTC
$ 9.09
-0.31 -3.30%
Volume: 74,939
April 1, 2020 3:56p
P/E Ratio
10.81
Dividend Yield
5.41%
Market Cap
$14.73 billion
Rev. per Employee
$868,462
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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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