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July 22, 2013, 5:06 a.m. EDT

Asian stocks rise; Japan gets election boost

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By V. Phani Kumar, MarketWatch

HONG KONG (MarketWatch) — Asian markets advanced Monday after China removed a floor on banks’ lending rates and Japan’s ruling government regained control of the parliament’s upper house, raising hopes for further reforms in both economies.

Japan’s Nikkei Stock Average /zigman2/quotes/210597971/delayed JP:NIK -0.60%  rose 0.5%, the Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP +0.02% added 0.6% and Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI -0.09% edged 0.3% higher, with each overcoming volatility that dragged them into losses earlier in the day.

“Longer-term investors will take heart from the improved potential for structural reform in Japan and China’s abolition of minimum bank lending rates,” said CMC Markets chief market analyst Ric Spooner.


Shutterstock Enlarge Image
Japan stocks rise after the Liberal Democratic Party regains control of the upper house of parliament in weekend elections.

The performance in Tokyo came after the ruling Liberal Democratic Party’s coalition easily won a majority of the 121 seats contested in the upper house elections over the weekend. The victory gave Prime Minister Shinzo Abe’s LDP control over both houses, consolidating its political power.

Telecommunication and insurance shares advanced, although a strengthened yen weighed on some exporters.

Shares of Softbank Corp. /zigman2/quotes/207303954/delayed JP:9984 -2.96%   /zigman2/quotes/202815238/composite SFTBF -0.05%  climbed 0.9%, Nippon Telegraph & Telephone Corp. /zigman2/quotes/200718273/delayed JP:9432 -1.40%  gained 1.3%, and MS&AD Insurance Group Holdings Inc. /zigman2/quotes/203653851/delayed JP:8725 -0.58%   /zigman2/quotes/209008763/composite MSADY -0.43%  rose 1%.

On the downside, Nissan Motor Corp. /zigman2/quotes/208298710/delayed JP:7201 -3.46% /zigman2/quotes/207656007/composite NSANY +0.85% eased 0.7%, Mitsubishi Heavy Industries Ltd. /zigman2/quotes/202419396/delayed JP:7011 -1.64%   /zigman2/quotes/206985358/composite MHVYF -1.44%  retreated 4.1%, and Renesas Electronics Corp. /zigman2/quotes/203872935/delayed JP:6723 -2.42%   /zigman2/quotes/201351352/composite RNECY -1.10%  dropped 3.4%, as the U.S. dollar /zigman2/quotes/210561789/realtime/sampled USDJPY +0.1563% fell to around the ¥100-level.

Click to Play

Big victory for Japan's Prime Minister Shinzo Abe

Japanese Prime Minister Shinzo Abe's ruling bloc wins a majority in Sunday's upper-house election.

HSBC’s co-head of Asian economic research Frederic Neumann said the real test for Prime Minister Abe’s administration lay ahead, as he must urgently implement far-reaching reforms to revive the economy.

“No matter whether [Abe] succeeds in the coming quarters or not, there is one effect that will be keenly felt: Japanese money will increasingly wash over Asia,” he wrote in a note to clients.

Chinese shares turned volatile, meanwhile, as analysts said the People’s Bank of China’s decision late Friday to abandon a floor on the rates bank could charge on their loans marked a structural reform, but one that wouldn’t significantly affect bank earnings nor provide help to the economy.

“We believe this is the easy part of interest-rate deregulation, but nevertheless is an important first step in the right direction for structural reforms,” Credit Suisse economist Dong Tao wrote in a report. “Removing the deposit-rate ceiling would be more significant to the economy and banking sector than removing the floor to the lending rate.”

China currently caps the interest rates that banks pay on deposits, a factor that often pushes savers toward riskier investments in search of higher returns.

/zigman2/quotes/202525815/delayed 601398 4.92, -0.01, -0.20%
/zigman2/quotes/208058581/delayed 601939 6.19, 0.00, 0.00%
/zigman2/quotes/210598127/delayed SHCOMP 3,275.08, +0.78, +0.02%
One-year percentage changes
A-shares of Industrial Commercial Bank of China and China Construction Bank Vs. Shanghai Composite

Credit ratings agency Moody’s Investors Service said that while the removal of the lending rate marked an important step in China’s financial reforms, removal of the lending rate floor was a credit negative for banks. “It is another move towards interest rate deregulation that will narrow their net interest margins,” Moody’s said.

In Monday trade, shares of China Construction Bank Corp. /zigman2/quotes/208058581/delayed CN:601939 0.00%   /zigman2/quotes/207732534/composite CICHY -0.59%  lost 0.2%, and those of Industrial & Commercial Bank of China Ltd. /zigman2/quotes/202525815/delayed CN:601398 -0.20% /zigman2/quotes/202401350/composite IDCBY -1.49% shed 0.5% in Shanghai.

Shares of metals companies advanced after gold and copper prices rose Friday in the U.S. Jiangxi Copper Co. /zigman2/quotes/201334192/delayed CN:600362 -0.91% /zigman2/quotes/204256025/composite JIXAY +37.29% climbed 2% and Zijin Mining Group Co. /zigman2/quotes/203833875/delayed CN:601899 -0.76% /zigman2/quotes/209836076/composite ZIJMF -3.36%  added 2.5% in Shanghai; in Hong Kong, Zhaojin Mining Industry Co. /zigman2/quotes/203361399/delayed HK:1818 +0.31%   /zigman2/quotes/200275285/composite ZHAOF +9.40% rose 4.5% and China Molybdenum Co. /zigman2/quotes/202330604/delayed HK:3993 -2.29%  advanced 1.1%.

Elsewhere, Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +1.63%  rose 0.6% and South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 -0.88%  added 0.5%, with the Australian shares propped up by the mining and financial sectors.

Commonwealth Bank of Australia /zigman2/quotes/200638713/delayed AU:CBA +1.79%   /zigman2/quotes/207018701/composite CBAUF -0.24% gained 0.6%, and Macquarie Group Ltd. /zigman2/quotes/206727308/delayed AU:MQG +1.18% /zigman2/quotes/204353811/composite MCQEF -4.40% rose 3.3%, while gold miner Newcrest Mining Ltd. /zigman2/quotes/203840223/delayed AU:NCM +2.13%   /zigman2/quotes/206026738/composite NCMGF -0.30%  jumped 7.5%.

Asia’s performance came after the Standard & Poor’s 500 Index /zigman2/quotes/210599714/realtime SPX +1.05% marked modest gains in the U.S. on Friday, though weakness for Microsoft Corp. /zigman2/quotes/207732364/composite MSFT +2.41%  helped drag down the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.52% .

/zigman2/quotes/210597971/delayed
JP : Nikkei
23,220.33
-139.97 -0.60%
Volume: 0.00
Sept. 23, 2020 11:30a
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/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,275.08
+0.78 +0.02%
Volume: 7.98B
Sept. 23, 2020 10:57a
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/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
23,695.33
-21.52 -0.09%
Volume: 440,455
Sept. 23, 2020 10:57a
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/zigman2/quotes/207303954/delayed
JP : Japan: Tokyo
¥ 6,351.00
-194.00 -2.96%
Volume: 9.73M
Sept. 23, 2020 11:30a
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
¥12739.81 billion
Rev. per Employee
¥126.96M
loading...
/zigman2/quotes/202815238/composite
US : U.S.: OTC
$ 60.70
-0.03 -0.05%
Volume: 1,415
Sept. 22, 2020 3:47p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$121.84 billion
Rev. per Employee
$1.15M
loading...
/zigman2/quotes/200718273/delayed
JP : Japan: Tokyo
¥ 2,221.50
-31.50 -1.40%
Volume: 4.91M
Sept. 23, 2020 11:30a
P/E Ratio
9.66
Dividend Yield
4.50%
Market Cap
¥8372.08 billion
Rev. per Employee
¥42.02M
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/zigman2/quotes/203653851/delayed
JP : Japan: Tokyo
¥ 2,938.00
-17.00 -0.58%
Volume: 692,100
Sept. 23, 2020 11:30a
P/E Ratio
11.77
Dividend Yield
5.11%
Market Cap
¥1668.10 billion
Rev. per Employee
¥123.64M
loading...
/zigman2/quotes/209008763/composite
US : U.S.: OTC
$ 13.79
-0.06 -0.43%
Volume: 21,205
Sept. 22, 2020 3:48p
P/E Ratio
11.82
Dividend Yield
3.72%
Market Cap
$15.95 billion
Rev. per Employee
$1.12M
loading...
/zigman2/quotes/208298710/delayed
JP : Japan: Tokyo
¥ 370.80
-13.30 -3.46%
Volume: 16.95M
Sept. 23, 2020 11:30a
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
¥1503.01 billion
Rev. per Employee
¥85.36M
loading...
/zigman2/quotes/207656007/composite
US : U.S.: OTC
$ 7.16
+0.06 +0.85%
Volume: 73,400
Sept. 22, 2020 3:52p
P/E Ratio
N/A
Dividend Yield
7.77%
Market Cap
$14.37 billion
Rev. per Employee
$773,563
loading...
/zigman2/quotes/202419396/delayed
JP : Japan: Tokyo
¥ 2,466.00
-41.00 -1.64%
Volume: 806,500
Sept. 23, 2020 11:30a
P/E Ratio
64.99
Dividend Yield
3.04%
Market Cap
¥842.39 billion
Rev. per Employee
¥51.56M
loading...
/zigman2/quotes/206985358/composite
US : U.S.: OTC
$ 23.60
-0.35 -1.44%
Volume: 54.00
Sept. 22, 2020 5:20p
P/E Ratio
70.01
Dividend Yield
N/A
Market Cap
$8.06 billion
Rev. per Employee
$467,489
loading...
/zigman2/quotes/203872935/delayed
JP : Japan: Tokyo
¥ 767.00
-19.00 -2.42%
Volume: 4.92M
Sept. 23, 2020 11:30a
P/E Ratio
46.83
Dividend Yield
N/A
Market Cap
¥1353.64 billion
Rev. per Employee
¥36.92M
loading...
/zigman2/quotes/201351352/composite
US : U.S.: OTC
$ 3.61
-0.04 -1.10%
Volume: 7,392
Sept. 22, 2020 3:44p
P/E Ratio
47.69
Dividend Yield
N/A
Market Cap
$12.95 billion
Rev. per Employee
$334,299
loading...
/zigman2/quotes/210561789/realtime/sampled
US : Tullett Prebon
105.0890
+0.1640 +0.1563%
Volume: 0.0000
Sept. 22, 2020 11:12p
loading...
/zigman2/quotes/208058581/delayed
CN : China: Shanghai
¥ 6.19
0.00 0.00%
Volume: 11.76M
Sept. 23, 2020 10:57a
P/E Ratio
5.72
Dividend Yield
5.17%
Market Cap
¥1169.13 billion
Rev. per Employee
¥2.76M
loading...
/zigman2/quotes/207732534/composite
US : U.S.: OTC
$ 13.47
-0.08 -0.59%
Volume: 265,615
Sept. 22, 2020 3:59p
P/E Ratio
4.33
Dividend Yield
5.66%
Market Cap
$172.59 billion
Rev. per Employee
$422,749
loading...
/zigman2/quotes/202525815/delayed
CN : China: Shanghai
¥ 4.92
-0.01 -0.20%
Volume: 32.87M
Sept. 23, 2020 10:57a
P/E Ratio
5.57
Dividend Yield
5.34%
Market Cap
¥1655.91 billion
Rev. per Employee
¥2.53M
loading...
/zigman2/quotes/202401350/composite
US : U.S.: OTC
$ 10.61
-0.16 -1.49%
Volume: 245,363
Sept. 22, 2020 3:50p
P/E Ratio
4.14
Dividend Yield
5.82%
Market Cap
$244.45 billion
Rev. per Employee
$387,287
loading...
/zigman2/quotes/201334192/delayed
CN : China: Shanghai
¥ 15.31
-0.14 -0.91%
Volume: 5.73M
Sept. 23, 2020 10:57a
P/E Ratio
27.74
Dividend Yield
0.65%
Market Cap
¥44.93 billion
Rev. per Employee
¥10.12M
loading...
/zigman2/quotes/204256025/composite
US : U.S.: OTC
$ 52.17
+14.17 +37.29%
Volume: 20.00
Sept. 22, 2020 5:20p
P/E Ratio
16.64
Dividend Yield
0.93%
Market Cap
$6.63 billion
Rev. per Employee
$1.55M
loading...
/zigman2/quotes/203833875/delayed
CN : China: Shanghai
¥ 6.51
-0.05 -0.76%
Volume: 52.47M
Sept. 23, 2020 10:57a
P/E Ratio
32.75
Dividend Yield
1.54%
Market Cap
¥164.01 billion
Rev. per Employee
¥5.78M
loading...
/zigman2/quotes/209836076/composite
US : U.S.: OTC
$ 0.72
-0.03 -3.36%
Volume: 109,249
Sept. 22, 2020 3:40p
P/E Ratio
25.44
Dividend Yield
N/A
Market Cap
$24.21 billion
Rev. per Employee
$872,997
loading...
/zigman2/quotes/203361399/delayed
HK : Hong Kong
HK$ 9.79
+0.03 +0.31%
Volume: 4.20M
Sept. 23, 2020 10:57a
P/E Ratio
44.06
Dividend Yield
0.45%
Market Cap
HK$32.77 billion
Rev. per Employee
HK$1.31M
loading...
/zigman2/quotes/200275285/composite
US : U.S.: OTC
$ 1.28
+0.11 +9.40%
Volume: 0.00
Sept. 17, 2020 5:20p
P/E Ratio
44.91
Dividend Yield
N/A
Market Cap
$4.30 billion
Rev. per Employee
$166,560
loading...
/zigman2/quotes/202330604/delayed
HK : Hong Kong
HK$ 2.99
-0.07 -2.29%
Volume: 11.15M
Sept. 23, 2020 10:57a
P/E Ratio
28.34
Dividend Yield
1.57%
Market Cap
HK$94.29 billion
Rev. per Employee
HK$2.75M
loading...
/zigman2/quotes/210598100/delayed
AU : S&P ASX
5,878.20
+94.10 +1.63%
Volume: 299,480
Sept. 23, 2020 12:52p
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/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,312.11
-20.48 -0.88%
Volume: 449,408
Sept. 23, 2020 11:52a
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/zigman2/quotes/200638713/delayed
AU : Australia: Sydney
$ 64.20
+1.13 +1.79%
Volume: 1.13M
Sept. 23, 2020 12:52p
P/E Ratio
12.26
Dividend Yield
4.64%
Market Cap
$112.28 billion
Rev. per Employee
$919,022
loading...
/zigman2/quotes/207018701/composite
US : U.S.: OTC
$ 48.78
-0.12 -0.24%
Volume: 9,787
Sept. 22, 2020 5:20p
P/E Ratio
13.81
Dividend Yield
N/A
Market Cap
$85.88 billion
Rev. per Employee
$687,071
loading...
/zigman2/quotes/206727308/delayed
AU : Australia: Sydney
$ 121.41
+1.41 +1.18%
Volume: 321,812
Sept. 23, 2020 12:52p
P/E Ratio
15.88
Dividend Yield
4.15%
Market Cap
$42.06 billion
Rev. per Employee
$1.02M
loading...
/zigman2/quotes/204353811/composite
US : U.S.: OTC
$ 87.00
-4.00 -4.40%
Volume: 16.00
Sept. 22, 2020 5:20p
P/E Ratio
16.68
Dividend Yield
N/A
Market Cap
$30.45 billion
Rev. per Employee
$777,639
loading...
/zigman2/quotes/203840223/delayed
AU : Australia: Sydney
$ 32.14
+0.67 +2.13%
Volume: 1.39M
Sept. 23, 2020 12:52p
P/E Ratio
25.78
Dividend Yield
0.76%
Market Cap
$26.14 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/206026738/composite
US : U.S.: OTC
$ 23.00
-0.07 -0.30%
Volume: 650.00
Sept. 22, 2020 10:38a
P/E Ratio
27.67
Dividend Yield
N/A
Market Cap
$18.84 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,315.57
+34.51 +1.05%
Volume: 2.36B
Sept. 22, 2020 5:07p
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/zigman2/quotes/207732364/composite
US : U.S.: Nasdaq
$ 207.42
+4.88 +2.41%
Volume: 33.52M
Sept. 22, 2020 4:00p
P/E Ratio
36.01
Dividend Yield
1.08%
Market Cap
$1532.75 billion
Rev. per Employee
$902,473
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
27,288.18
+140.48 +0.52%
Volume: 423.33M
Sept. 22, 2020 5:07p
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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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