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June 26, 2013, 4:35 a.m. EDT

Most Asian stocks rise as Shanghai falls again

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By V. Phani Kumar, MarketWatch

HONG KONG (MarketWatch) — Stocks in Hong Kong and Australia posted solid gains Wednesday as a positive lead from Wall Street helped a rebound from recent losses, but shares traded in Shanghai extended losses on lingering worries about high interbank money market rates.

Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +1.08%  jumped 1.6% after a four-day losing streak, while Taiwan’s Taiex  added 1.6% and South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 +0.98%  edged up 0.2% after each suffered declines in the previous five sessions.

Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI +2.03%  soared 2.4% to 20,338.55, returning back above the 20,000-point level.

/zigman2/quotes/210598127/delayed SHCOMP 3,126.67, +3.56, +0.11%
/zigman2/quotes/210598065/realtime DJIA 32,637.19, +516.91, +1.61%
One-month percentage moves
Shanghai Composite extends fall despite overnight gains for Dow Jones Industrial Average

The gains came after stocks on Wall Street ended higher Tuesday to cheer data showing an increase in durable-goods orders, new home sales and consumer confidence, despite the looming prospect that the Federal Reserve may slow its bond purchases if the U.S. economy improves.

The higher finish for the key U.S. equity indexes “suggests that, although the quantitative-easing exit will be rocky, signs the U.S. is standing on its feet will be a chance for optimism rather than cynicism,” said IG Markets strategist Evan Lucas.

On the downside, Japan’s Nikkei Stock Average /zigman2/quotes/210597971/delayed JP:NIK +0.66%  gave up early gains to end the day 1% lower after a roller-coaster ride, as the yen strengthened and concerns over credit conditions in China persisted.

China’s Shanghai Composite Index /zigman2/quotes/210598127/delayed CN:SHCOMP +0.11% dropped 0.4%, meanwhile, for its 15th decline in 17 sessions. The benchmark index has lost more than 15% of its value just this month. It ended Wednesday’s session just shy of bear market territory, at 19.8% lower than its Feb. 6 high.

The index had on Tuesday tumbled as much as 5.8% before staging a major recovery in late afternoon trade to slash those losses and finish the day just mildly lower.

The Shanghai index’s drop Wednesday came as interbank money market rates in Shanghai remained at elevated levels.

The rate on the seven-day weighted average repurchase agreement eased to 7.17% early on Wednesday from Tuesday’s close at 7.44%, while the overnight repo rate fell to 5.51% from 5.83%, according to a Dow Jones Newswires report.


Reuters Enlarge Image
Asian stocks rebound after a string of recent losses.

Both rates, however, remain above the levels seen up until the end of May, even after a People’s Bank of China official said Tuesday the central bank will guide interest rates to a “reasonable range.”

Still, analysts remained confident the high borrowing costs in Chinese interbank markets would decline by mid-July.

“Policy makers appear prepared to inflict pain on banks and accept some growth slowdown to reduce systemic risks. However, they will act to ease the liquidity squeeze before it jeopardizes the annual growth target or threatens systemic stability or survival of a bank,” said Crédit Agricole senior economist Dariusz Kowalczyk.

Several banks traded lower in Shanghai, with Industrial & Commercial Bank of China Ltd. /zigman2/quotes/202525815/delayed CN:601398 +0.22% /zigman2/quotes/202401350/delayed IDCBY +0.42% sliding 5.6% as the stock traded without rights to a dividend, while China Minsheng Banking Corp. /zigman2/quotes/203910009/delayed CN:600016 +0.26% /zigman2/quotes/200749234/delayed CMAKY +3.53%  dropped 1.7%.

Lenders were mostly higher in Hong Kong, however, with the locally listed shares of ICBC /zigman2/quotes/201401473/delayed HK:1398 +0.43%  and China Minsheng /zigman2/quotes/208095167/delayed HK:1988 -1.00% jumping 6.8% and 6.4%, respectively.

In Japan, shares of several exporters gave up early gains to retreat as the U.S. dollar /zigman2/quotes/210561789/realtime/sampled USDJPY -0.0197%  weakened amid losses in Shanghai.

Shares of Fanuc Corp. /zigman2/quotes/202054799/delayed JP:6954 -0.02%   /zigman2/quotes/209410825/delayed FANUY -1.40%  dropped 1.6%, Hitachi Construction Machinery Co. /zigman2/quotes/205375504/delayed JP:6305 +1.81% /zigman2/quotes/202415695/delayed HTCMY +0.89%  shed 2.1%, and Mazda Motor Corp. /zigman2/quotes/204777714/delayed JP:7261 +0.36%   /zigman2/quotes/206646681/delayed MZDAF +0.97%  fell 1.1%.

Softbank Corp. /zigman2/quotes/207303954/delayed JP:9984 +3.43% /zigman2/quotes/202815238/delayed SFTBF +5.41% , which had also jumped earlier in the day on news that Sprint Nextel Corp. /zigman2/quotes/208685669/composite S +4.78%  shareholders had voted in favor of the company’s takeover offer, retreated in a downbeat market, ended 0.2% lower.

Click to Play

Asia buyers dive into U.S real estate

Asian investors are pumping money into U.S. commercial real estate at a record pace, helping to fuel the recovery of property values and funding development in major markets.

But shares of some Japanese banks rose on a Nikkei newspaper report they planned to raise mortgage rates for a third consecutive month in July.

Mitsubishi UFJ Financial Group Inc. /zigman2/quotes/207520099/delayed JP:8306 -0.28%  advanced 0.5%, and Sumitomo Mitsui Financial Group Inc. /zigman2/quotes/203656770/delayed JP:8316 -0.08% /zigman2/quotes/206471416/composite SMFG +1.13%  gained 0.6%.

Miners rebounded in Sydney, with BHP Billiton Ltd. /zigman2/quotes/201448516/delayed AU:BHP +2.46% /zigman2/quotes/208108397/composite BHP -0.41%  rising 2.6%, and Fortescue Metals Group Ltd. /zigman2/quotes/202351558/delayed AU:FMG -1.66%   /zigman2/quotes/204116626/delayed FSUMF -4.72%  climbing 2.4%, although both stocks were off the day’s highs.

/zigman2/quotes/210598100/delayed
AU : S&P ASX
7,182.70
+76.80 +1.08%
Volume: 551,169
May 27, 2022 4:23p
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/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,638.05
+25.60 +0.98%
Volume: 580,938
May 27, 2022 3:30p
loading...
/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
20,524.99
+408.79 +2.03%
Volume: 1.84M
May 27, 2022 2:48p
loading...
/zigman2/quotes/210597971/delayed
JP : Nikkei
26,781.68
+176.84 +0.66%
Volume: 0.00
May 27, 2022 3:15p
loading...
/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,126.67
+3.56 +0.11%
Volume: 34.01B
May 27, 2022 2:48p
loading...
/zigman2/quotes/202525815/delayed
CN : China: Shanghai
¥ 4.66
+0.01 +0.22%
Volume: 117.39M
May 27, 2022 2:48p
P/E Ratio
4.70
Dividend Yield
6.29%
Market Cap
¥1600.20 billion
Rev. per Employee
¥3.19M
loading...
/zigman2/quotes/202401350/delayed
US : U.S.: OTC
$ 11.85
+0.05 +0.42%
Volume: 69,345
May 26, 2022 3:53p
P/E Ratio
3.91
Dividend Yield
5.82%
Market Cap
$239.82 billion
Rev. per Employee
$495,188
loading...
/zigman2/quotes/203910009/delayed
CN : China: Shanghai
¥ 3.85
+0.01 +0.26%
Volume: 56.61M
May 27, 2022 2:48p
P/E Ratio
5.19
Dividend Yield
5.53%
Market Cap
¥156.61 billion
Rev. per Employee
¥5.72M
loading...
/zigman2/quotes/200749234/delayed
US : U.S.: OTC
$ 3.81
+0.13 +3.53%
Volume: 1,340
May 26, 2022 10:21a
P/E Ratio
3.32
Dividend Yield
6.56%
Market Cap
$23.24 billion
Rev. per Employee
$828,852
loading...
/zigman2/quotes/201401473/delayed
HK : Hong Kong
$ 4.67
+0.02 +0.43%
Volume: 125.34M
May 27, 2022 2:47p
P/E Ratio
4.34
Dividend Yield
7.32%
Market Cap
$1882.52 billion
Rev. per Employee
$3.78M
loading...
/zigman2/quotes/208095167/delayed
HK : Hong Kong
$ 2.98
-0.03 -1.00%
Volume: 20.04M
May 27, 2022 2:48p
P/E Ratio
3.50
Dividend Yield
8.33%
Market Cap
$184.24 billion
Rev. per Employee
$6.51M
loading...
/zigman2/quotes/210561789/realtime/sampled
US : Tullett Prebon
127.0680
-0.0250 -0.0197%
Volume: 0.0000
May 27, 2022 3:03a
loading...
/zigman2/quotes/202054799/delayed
JP : Japan: Tokyo
¥ 20,365.00
-5.00 -0.02%
Volume: 722,800
May 27, 2022 3:00p
P/E Ratio
25.16
Dividend Yield
2.38%
Market Cap
¥3994.73 billion
Rev. per Employee
¥88.78M
loading...
/zigman2/quotes/209410825/delayed
US : U.S.: OTC
$ 16.24
-0.23 -1.40%
Volume: 191,195
May 26, 2022 3:59p
P/E Ratio
22.52
Dividend Yield
1.79%
Market Cap
$31.37 billion
Rev. per Employee
$790,093
loading...
/zigman2/quotes/205375504/delayed
JP : Japan: Tokyo
¥ 2,981.00
+53.00 +1.81%
Volume: 615,600
May 27, 2022 3:00p
P/E Ratio
8.36
Dividend Yield
2.08%
Market Cap
¥620.94 billion
Rev. per Employee
¥41.21M
loading...
/zigman2/quotes/202415695/delayed
US : U.S.: OTC
$ 46.67
+0.41 +0.89%
Volume: 602.00
May 26, 2022 3:09p
P/E Ratio
7.40
Dividend Yield
1.62%
Market Cap
$4.88 billion
Rev. per Employee
$366,706
loading...
/zigman2/quotes/204777714/delayed
JP : Japan: Tokyo
¥ 1,105.00
+4.00 +0.36%
Volume: 3.84M
May 27, 2022 3:00p
P/E Ratio
8.54
Dividend Yield
3.17%
Market Cap
¥697.26 billion
Rev. per Employee
¥62.68M
loading...
/zigman2/quotes/206646681/delayed
US : U.S.: OTC
$ 8.68
+0.08 +0.97%
Volume: 1.00
May 25, 2022 1:39p
P/E Ratio
7.65
Dividend Yield
N/A
Market Cap
$5.47 billion
Rev. per Employee
$557,744
loading...
/zigman2/quotes/207303954/delayed
JP : Japan: Tokyo
¥ 5,341.00
+177.00 +3.43%
Volume: 18.37M
May 27, 2022 3:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
¥8742.87 billion
Rev. per Employee
¥105.83M
loading...
/zigman2/quotes/202815238/delayed
US : U.S.: OTC
$ 42.47
+2.18 +5.41%
Volume: 1,480
May 26, 2022 3:49p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$68.65 billion
Rev. per Employee
$941,809
loading...
/zigman2/quotes/208685669/composite
US : U.S.: NYSE
$ 24.75
+1.13 +4.78%
Volume: 2.68M
May 26, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$6.42 billion
Rev. per Employee
$170,666
loading...
/zigman2/quotes/207520099/delayed
JP : Japan: Tokyo
¥ 738.80
-2.10 -0.28%
Volume: 40.31M
May 27, 2022 3:00p
P/E Ratio
8.38
Dividend Yield
4.33%
Market Cap
¥9187.79 billion
Rev. per Employee
¥36.95M
loading...
/zigman2/quotes/203656770/delayed
JP : Japan: Tokyo
¥ 3,960.00
-3.00 -0.08%
Volume: 5.14M
May 27, 2022 3:00p
P/E Ratio
7.68
Dividend Yield
5.56%
Market Cap
¥5383.23 billion
Rev. per Employee
¥43.79M
loading...
/zigman2/quotes/206471416/composite
US : U.S.: NYSE
$ 6.25
+0.07 +1.13%
Volume: 1.43M
May 26, 2022 4:00p
P/E Ratio
6.76
Dividend Yield
4.72%
Market Cap
$42.27 billion
Rev. per Employee
$389,657
loading...
/zigman2/quotes/201448516/delayed
AU : Australia: Sydney
$ 43.67
+1.05 +2.46%
Volume: 8.19M
May 27, 2022 4:10p
P/E Ratio
9.82
Dividend Yield
10.98%
Market Cap
$217.74 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/208108397/composite
US : U.S.: NYSE
$ 68.41
-0.28 -0.41%
Volume: 2.00M
May 26, 2022 4:00p
P/E Ratio
10.43
Dividend Yield
10.23%
Market Cap
$153.98 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/202351558/delayed
AU : Australia: Sydney
$ 19.59
-0.33 -1.66%
Volume: 9.89M
May 27, 2022 4:10p
P/E Ratio
5.10
Dividend Yield
15.16%
Market Cap
$63.64 billion
Rev. per Employee
$2.74M
loading...
/zigman2/quotes/204116626/delayed
US : U.S.: OTC
$ 14.14
-0.70 -4.72%
Volume: 806.00
May 26, 2022 10:52a
P/E Ratio
4.86
Dividend Yield
N/A
Market Cap
$45.00 billion
Rev. per Employee
$2.07M
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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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