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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 -0.08%  rose 0.5%, the Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP +0.24% added 0.6% and Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI +0.79% 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 -0.14%   /zigman2/quotes/202815238/delayed SFTBF -0.98%  climbed 0.9%, Nippon Telegraph & Telephone Corp. /zigman2/quotes/200718273/delayed JP:9432 +0.39%  gained 1.3%, and MS&AD Insurance Group Holdings Inc. /zigman2/quotes/203653851/delayed JP:8725 +0.47%   /zigman2/quotes/209008763/delayed MSADY +0.36%  rose 1%.

On the downside, Nissan Motor Corp. /zigman2/quotes/208298710/delayed JP:7201 -1.47% /zigman2/quotes/207656007/delayed NSANY -1.27% eased 0.7%, Mitsubishi Heavy Industries Ltd. /zigman2/quotes/202419396/delayed JP:7011 -0.73%   /zigman2/quotes/206985358/delayed MHVYF -0.98%  retreated 4.1%, and Renesas Electronics Corp. /zigman2/quotes/203872935/delayed JP:6723 +0.28%   /zigman2/quotes/201351352/delayed RNECY -2.58%  dropped 3.4%, as the U.S. dollar /zigman2/quotes/210561789/realtime/sampled USDJPY +0.0175% 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 5.75, +0.05, +0.88%
/zigman2/quotes/208058581/delayed 601939 7.10, +0.03, +0.42%
/zigman2/quotes/210598127/delayed SHCOMP 2,924.42, +7.10, +0.24%
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 +0.42%   /zigman2/quotes/207732534/delayed CICHY +0.63%  lost 0.2%, and those of Industrial & Commercial Bank of China Ltd. /zigman2/quotes/202525815/delayed CN:601398 +0.88% /zigman2/quotes/202401350/delayed IDCBY +0.18% 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 +0.73% /zigman2/quotes/204256025/delayed JIXAY -2.05% climbed 2% and Zijin Mining Group Co. /zigman2/quotes/203833875/delayed CN:601899 -0.25% /zigman2/quotes/209836076/delayed ZIJMF +0.49%  added 2.5% in Shanghai; in Hong Kong, Zhaojin Mining Industry Co. /zigman2/quotes/203361399/delayed HK:1818 +1.50%   /zigman2/quotes/200275285/delayed ZHAOF +0.77% rose 4.5% and China Molybdenum Co. /zigman2/quotes/202330604/delayed HK:3993 -1.35%  advanced 1.1%.

Elsewhere, Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +0.68%  rose 0.6% and South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 +0.36%  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 +1.36%   /zigman2/quotes/207018701/delayed CBAUF -1.58% gained 0.6%, and Macquarie Group Ltd. /zigman2/quotes/206727308/delayed AU:MQG +0.09% /zigman2/quotes/204353811/delayed MCQEF +3.73% rose 3.3%, while gold miner Newcrest Mining Ltd. /zigman2/quotes/203840223/delayed AU:NCM 0.00%   /zigman2/quotes/206026738/delayed NCMGF +0.05%  jumped 7.5%.

Asia’s performance came after the Standard & Poor’s 500 Index /zigman2/quotes/210599714/realtime SPX -0.11% marked modest gains in the U.S. on Friday, though weakness for Microsoft Corp. /zigman2/quotes/207732364/composite MSFT -0.15%  helped drag down the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.10% .

/zigman2/quotes/210597971/delayed
JP : Nikkei
23,391.86
-18.33 -0.08%
Volume: 0.00
Dec. 11, 2019 3:15p
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/zigman2/quotes/210598127/delayed
CN : China: Shanghai
2,924.42
+7.10 +0.24%
Volume: 16.55B
Dec. 11, 2019 3:01p
loading...
/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
26,645.43
+208.81 +0.79%
Volume: 1.41M
Dec. 11, 2019 4:09p
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/zigman2/quotes/207303954/delayed
JP : Japan: Tokyo
¥ 4,289.00
-6.00 -0.14%
Volume: 8.58M
Dec. 11, 2019 3:00p
P/E Ratio
9.70
Dividend Yield
1.03%
Market Cap
¥8895.97 billion
Rev. per Employee
¥126.96M
loading...
/zigman2/quotes/202815238/delayed
US : U.S.: OTC
$ 39.50
-0.39 -0.98%
Volume: 9,853
Dec. 10, 2019 3:46p
P/E Ratio
10.19
Dividend Yield
N/A
Market Cap
$81.81 billion
Rev. per Employee
$1.15M
loading...
/zigman2/quotes/200718273/delayed
JP : Japan: Tokyo
¥ 5,604.00
+22.00 +0.39%
Volume: 2.10M
Dec. 11, 2019 3:00p
P/E Ratio
12.64
Dividend Yield
3.39%
Market Cap
¥10145.90 billion
Rev. per Employee
¥42.02M
loading...
/zigman2/quotes/203653851/delayed
JP : Japan: Tokyo
¥ 3,658.00
+17.00 +0.47%
Volume: 980,200
Dec. 11, 2019 3:00p
P/E Ratio
6.88
Dividend Yield
4.10%
Market Cap
¥2091.98 billion
Rev. per Employee
¥123.64M
loading...
/zigman2/quotes/209008763/delayed
US : U.S.: OTC
$ 16.68
+0.06 +0.36%
Volume: 19,540
Dec. 10, 2019 3:56p
P/E Ratio
6.93
Dividend Yield
2.97%
Market Cap
$19.44 billion
Rev. per Employee
$1.12M
loading...
/zigman2/quotes/208298710/delayed
JP : Japan: Tokyo
¥ 669.60
-10.00 -1.47%
Volume: 10.32M
Dec. 11, 2019 3:00p
P/E Ratio
18.96
Dividend Yield
2.99%
Market Cap
¥2659.35 billion
Rev. per Employee
¥85.36M
loading...
/zigman2/quotes/207656007/delayed
US : U.S.: OTC
$ 12.43
-0.16 -1.27%
Volume: 130,403
Dec. 10, 2019 3:49p
P/E Ratio
12.97
Dividend Yield
4.47%
Market Cap
$24.46 billion
Rev. per Employee
$773,563
loading...
/zigman2/quotes/202419396/delayed
JP : Japan: Tokyo
¥ 4,213.00
-31.00 -0.73%
Volume: 1.01M
Dec. 11, 2019 3:00p
P/E Ratio
13.48
Dividend Yield
3.56%
Market Cap
¥1425.69 billion
Rev. per Employee
¥51.56M
loading...
/zigman2/quotes/206985358/delayed
US : U.S.: OTC
$ 38.42
-0.38 -0.98%
Volume: 0.00
Dec. 5, 2019 5:19p
P/E Ratio
13.52
Dividend Yield
N/A
Market Cap
$13.14 billion
Rev. per Employee
$467,489
loading...
/zigman2/quotes/203872935/delayed
JP : Japan: Tokyo
¥ 721.00
+2.00 +0.28%
Volume: 5.02M
Dec. 11, 2019 3:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
¥1227.64 billion
Rev. per Employee
¥36.92M
loading...
/zigman2/quotes/201351352/delayed
US : U.S.: OTC
$ 3.22
-0.09 -2.58%
Volume: 963.00
Dec. 10, 2019 3:45p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$11.29 billion
Rev. per Employee
$334,299
loading...
/zigman2/quotes/210561789/realtime/sampled
US : Tullett Prebon
108.7330
+0.0190 +0.0175%
Volume: 0.0000
Dec. 11, 2019 3:47a
loading...
/zigman2/quotes/208058581/delayed
CN : China: Shanghai
¥ 7.10
+0.03 +0.42%
Volume: 45.39M
Dec. 11, 2019 3:00p
P/E Ratio
6.68
Dividend Yield
4.31%
Market Cap
¥1767.58 billion
Rev. per Employee
¥2.76M
loading...
/zigman2/quotes/207732534/delayed
US : U.S.: OTC
$ 16.08
+0.10 +0.63%
Volume: 199,064
Dec. 10, 2019 3:48p
P/E Ratio
5.23
Dividend Yield
4.68%
Market Cap
$193.84 billion
Rev. per Employee
$422,749
loading...
/zigman2/quotes/202525815/delayed
CN : China: Shanghai
¥ 5.75
+0.05 +0.88%
Volume: 112.88M
Dec. 11, 2019 3:00p
P/E Ratio
6.62
Dividend Yield
4.36%
Market Cap
¥2031.51 billion
Rev. per Employee
¥2.53M
loading...
/zigman2/quotes/202401350/delayed
US : U.S.: OTC
$ 14.19
+0.03 +0.18%
Volume: 106,309
Dec. 10, 2019 3:37p
P/E Ratio
5.65
Dividend Yield
4.27%
Market Cap
$61.88 billion
Rev. per Employee
$387,287
loading...
/zigman2/quotes/201334192/delayed
CN : China: Shanghai
¥ 15.20
+0.11 +0.73%
Volume: 26.41M
Dec. 11, 2019 3:00p
P/E Ratio
21.33
Dividend Yield
1.32%
Market Cap
¥52.25 billion
Rev. per Employee
¥10.12M
loading...
/zigman2/quotes/204256025/delayed
US : U.S.: OTC
$ 47.78
-1.00 -2.05%
Volume: 0.00
Nov. 21, 2019 5:19p
P/E Ratio
11.52
Dividend Yield
2.14%
Market Cap
$1.68 billion
Rev. per Employee
$1.55M
loading...
/zigman2/quotes/203833875/delayed
CN : China: Shanghai
¥ 3.95
-0.01 -0.25%
Volume: 159.07M
Dec. 11, 2019 3:00p
P/E Ratio
24.28
Dividend Yield
2.53%
Market Cap
¥91.20 billion
Rev. per Employee
¥5.78M
loading...
/zigman2/quotes/209836076/delayed
US : U.S.: OTC
$ 0.41
+0.0020 +0.49%
Volume: 20,410
Dec. 10, 2019 3:45p
P/E Ratio
17.37
Dividend Yield
N/A
Market Cap
$9.44 billion
Rev. per Employee
$872,997
loading...
/zigman2/quotes/203361399/delayed
HK : Hong Kong
HK$ 8.14
+0.12 +1.50%
Volume: 3.86M
Dec. 11, 2019 4:08p
P/E Ratio
55.37
Dividend Yield
0.56%
Market Cap
HK$25.83 billion
Rev. per Employee
HK$1.31M
loading...
/zigman2/quotes/200275285/delayed
US : U.S.: OTC
$ 1.31
+0.01 +0.77%
Volume: 0.00
Nov. 29, 2019 2:19p
P/E Ratio
70.05
Dividend Yield
N/A
Market Cap
$3.30 billion
Rev. per Employee
$166,560
loading...
/zigman2/quotes/202330604/delayed
HK : Hong Kong
HK$ 2.92
-0.04 -1.35%
Volume: 35.11M
Dec. 11, 2019 4:08p
P/E Ratio
31.77
Dividend Yield
4.28%
Market Cap
HK$63.93 billion
Rev. per Employee
HK$2.75M
loading...
/zigman2/quotes/210598100/delayed
AU : S&P ASX
6,752.60
+45.70 +0.68%
Volume: 638,297
Dec. 11, 2019 5:32p
loading...
/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,105.62
+7.62 +0.36%
Volume: 661,680
Dec. 11, 2019 3:32p
loading...
/zigman2/quotes/200638713/delayed
AU : Australia: Sydney
$ 80.31
+1.08 +1.36%
Volume: 2.44M
Dec. 11, 2019 4:10p
P/E Ratio
17.45
Dividend Yield
5.37%
Market Cap
$140.06 billion
Rev. per Employee
$919,022
loading...
/zigman2/quotes/207018701/delayed
US : U.S.: OTC
$ 53.27
-0.86 -1.58%
Volume: 0.00
Dec. 5, 2019 5:19p
P/E Ratio
16.17
Dividend Yield
N/A
Market Cap
$95.21 billion
Rev. per Employee
$687,071
loading...
/zigman2/quotes/206727308/delayed
AU : Australia: Sydney
$ 135.50
+0.12 +0.09%
Volume: 708,107
Dec. 11, 2019 4:10p
P/E Ratio
14.98
Dividend Yield
5.33%
Market Cap
$45.85 billion
Rev. per Employee
$1.02M
loading...
/zigman2/quotes/204353811/delayed
US : U.S.: OTC
$ 94.50
+3.40 +3.73%
Volume: 8.00
Dec. 10, 2019 5:20p
P/E Ratio
14.83
Dividend Yield
N/A
Market Cap
$32.00 billion
Rev. per Employee
$777,639
loading...
/zigman2/quotes/203840223/delayed
AU : Australia: Sydney
$ 28.76
0.00 0.00%
Volume: 2.80M
Dec. 11, 2019 4:10p
P/E Ratio
28.20
Dividend Yield
1.11%
Market Cap
$22.06 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/206026738/delayed
US : U.S.: OTC
$ 19.51
+0.01 +0.05%
Volume: 19.00
Dec. 10, 2019 5:20p
P/E Ratio
26.81
Dividend Yield
N/A
Market Cap
$14.99 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,132.52
-3.44 -0.11%
Volume: 1.66B
Dec. 10, 2019 5:12p
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/zigman2/quotes/207732364/composite
US : U.S.: Nasdaq
$ 151.13
-0.23 -0.15%
Volume: 16.48M
Dec. 10, 2019 4:00p
P/E Ratio
28.46
Dividend Yield
1.35%
Market Cap
$1152.94 billion
Rev. per Employee
$902,473
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
27,881.72
-27.88 -0.10%
Volume: 215.81M
Dec. 10, 2019 5:12p
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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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