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Aug. 23, 2013, 4:45 a.m. EDT

Japan stocks rally, as China shares retreat

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By V. Phani Kumar, MarketWatch

HONG KONG (MarketWatch) — Japanese stocks led most Asian markets higher Friday, cheering gains on Wall Street and a weakened yen, while Chinese stocks retreated amid concerns about liquidity conditions.

Japan’s Nikkei Stock Average /zigman2/quotes/210597971/delayed JP:NIK +0.98%  was the region’s strongest performer, jumping 2.2% as the U.S. dollar /zigman2/quotes/210561789/realtime/sampled USDJPY -0.1275% briefly climbed above the ¥99-level.

Also climbing, Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +0.05% gained 0.9%, South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 +0.31% added 1.1% and Taiwan’s Taiex  rose 0.8%.

Reversing early gains, Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI -1.19% dropped 0.2% and China’s Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP +0.0092% gave up 0.5%.


Reuters Enlarge Image
Japanese stocks rally after the yen falls and U.S. shares advance.

The region’s broad advance follow a period of uncertainty surrounding the Federal Reserve’s bond-purchase program, with emerging markets in particular hit by worries that reduced stimulus from the U.S. central bank would spur foreign fund outflows from the region.

ING Financial Markets economist Tim Condon said a tapering of the $85 billion-a-month in Fed stimulus could result in a rapid repricing of U.S. Treasury yields, lifting the 10-year yield  by about 1.50 percentage point in about two quarters.

However, “once it’s over, the economic fundamentals ... will reassert themselves as the drivers of financial-asset prices. We’re not there yet, and contagion could still cause a balance-of-payments crisis in an emerging market with a too-large current-account deficit,” Condon said.

Friday’s performance helped the Nikkei Average and the S&P/ASX 200 erase losses they had accumulated earlier in the week. But the Shanghai Composite, the Hang Seng Index and the Kospi suffered losses of between 0.5% and 2.9%.

Stock movers

Stock gains in Tokyo were spread across sectors. Kawasaki Heavy Industries Ltd. /zigman2/quotes/206655821/delayed JP:7012 -2.86%   /zigman2/quotes/202288565/composite KWHIF +8.05%  added 4.9%, Kobe Steel Ltd. /zigman2/quotes/207391157/delayed JP:5406 -1.30%   rose 4.6%, Toshiba Corp. /zigman2/quotes/205628942/delayed JP:6502 +0.63%   /zigman2/quotes/204149068/composite TOSYY +0.42%  advanced 4.2%, Nissan Motor Corp. /zigman2/quotes/208298710/delayed JP:7201 +0.20%   /zigman2/quotes/207656007/composite NSANY +2.70%  finished 3.4% higher and Sumitomo Mitsui Financial Group Inc. /zigman2/quotes/203656770/delayed JP:8316 -0.03%   /zigman2/quotes/206471416/composite SMFG 0.00%  climbed 2.7%.

Click to Play

Nasdaq market halts trading

Nasdaq resumed trading nearly three hours after an abrupt halt in trading blamed on an unexplained technical issue. President Barack Obama lays out proposals aimed at reining in rising tuition costs.

A Reuters report Friday cited a survey results as showing that local manufacturers’ optimism rose to the highest level in three years.

The region’s broad advances followed a higher finish for the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.03% which snapped a six-day losing streak overnight after a monthly average of jobless claims fell to a more than five-year low in the U.S., and as manufacturing Purchasing Managers’ Index readings from China and Germany indicated expansion.

“The fact that the U.S. and European recoveries are improving (albeit fractionally) is a good foundation for global markets, but investors firstly have to get through the removal of the price distortions that quantitative easing created,” said Perpetual investment market-research chief Matthew Sherwood.

Meanwhile, Chinese stocks fell amid worries over tightening liquidity.

China Merchants Bank Co. /zigman2/quotes/209899244/delayed HK:3968 -1.02%   /zigman2/quotes/210188047/delayed CN:600036 -1.18% /zigman2/quotes/208876947/composite CIHKY +4.43%  lost 3.2% in Shanghai and 1.1% in Hong Kong on its planned rights share issue to raise about 34.9 billion yuan ($5.7 billion).

Other mid-sized banks also declined, with Industrial Bank Co. /zigman2/quotes/209353019/delayed CN:601166 -0.05%  losing 2% and China Minsheng Banking Corp. /zigman2/quotes/203910009/delayed CN:600016 +0.26%   /zigman2/quotes/200749234/composite CMAKY +2.65%  shedding 1.5% in Shanghai, while Ping An Bank Corp. /zigman2/quotes/206600939/delayed CN:000001 -1.26%  dropped 3% in Shenzhen.

Some Hong Kong-listed stocks found buying support after reporting earnings. Kunlun Energy Co. /zigman2/quotes/207929595/delayed HK:135 +1.20%   /zigman2/quotes/209475075/composite KLYCY -0.71%  added 3.2% after the company posted a 5% increase in its first-half profit, while Henderson Land Development Co. /zigman2/quotes/208724890/delayed HK:12 -0.46%   /zigman2/quotes/200560946/composite HLDCY -0.24% advanced 2.6% despite a modest decline in its profits.

/zigman2/quotes/210597971/delayed
JP : Nikkei
27,001.52
+262.49 +0.98%
Volume: 0.00
May 23, 2022 3:15p
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/zigman2/quotes/210561789/realtime/sampled
US : Tullett Prebon
127.7150
-0.1630 -0.1275%
Volume: 0.0000
May 23, 2022 8:29a
loading...
/zigman2/quotes/210598100/delayed
AU : S&P ASX
7,148.90
+3.30 +0.05%
Volume: 559,690
May 23, 2022 5:55p
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/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,647.38
+8.09 +0.31%
Volume: 644,204
May 23, 2022 3:30p
loading...
/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
20,470.06
-247.18 -1.19%
Volume: 1.70M
May 23, 2022 4:08p
loading...
/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,146.86
+0.29 +0.0092%
Volume: 35.34B
May 23, 2022 3:00p
loading...
/zigman2/quotes/206655821/delayed
JP : Japan: Tokyo
¥ 2,410.00
-71.00 -2.86%
Volume: 2.24M
May 23, 2022 3:00p
P/E Ratio
18.49
Dividend Yield
2.07%
Market Cap
¥415.46 billion
Rev. per Employee
¥40.91M
loading...
/zigman2/quotes/202288565/composite
US : U.S.: OTC
$ 18.13
+1.35 +8.05%
Volume: 0.00
May 4, 2022 2:58p
P/E Ratio
15.89
Dividend Yield
N/A
Market Cap
$2.96 billion
Rev. per Employee
$364,020
loading...
/zigman2/quotes/207391157/delayed
JP : Japan: Tokyo
¥ 681.00
-9.00 -1.30%
Volume: 9.00M
May 23, 2022 3:00p
P/E Ratio
4.24
Dividend Yield
5.87%
Market Cap
¥272.35 billion
Rev. per Employee
¥51.40M
loading...
/zigman2/quotes/205628942/delayed
JP : Japan: Tokyo
¥ 5,587.00
+35.00 +0.63%
Volume: 972,400
May 23, 2022 3:00p
P/E Ratio
12.60
Dividend Yield
5.19%
Market Cap
¥2402.11 billion
Rev. per Employee
¥28.45M
loading...
/zigman2/quotes/204149068/composite
US : U.S.: OTC
$ 21.61
+0.09 +0.42%
Volume: 30,685
May 20, 2022 3:52p
P/E Ratio
11.07
Dividend Yield
3.36%
Market Cap
$18.76 billion
Rev. per Employee
$253,159
loading...
/zigman2/quotes/208298710/delayed
JP : Japan: Tokyo
¥ 497.90
+1.00 +0.20%
Volume: 16.18M
May 23, 2022 3:00p
P/E Ratio
9.04
Dividend Yield
1.00%
Market Cap
¥1945.00 billion
Rev. per Employee
¥63.67M
loading...
/zigman2/quotes/207656007/composite
US : U.S.: OTC
$ 7.80
+0.21 +2.70%
Volume: 119,671
May 20, 2022 3:58p
P/E Ratio
7.84
Dividend Yield
0.63%
Market Cap
$15.19 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/203656770/delayed
JP : Japan: Tokyo
¥ 3,895.00
-1.00 -0.03%
Volume: 5.87M
May 23, 2022 3:00p
P/E Ratio
7.56
Dividend Yield
5.65%
Market Cap
¥5340.74 billion
Rev. per Employee
¥43.79M
loading...
/zigman2/quotes/206471416/composite
US : U.S.: NYSE
$ 6.05
0.00 0.00%
Volume: 2.57M
May 20, 2022 4:00p
P/E Ratio
6.54
Dividend Yield
4.88%
Market Cap
$41.72 billion
Rev. per Employee
$389,657
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
31,261.90
+8.77 +0.03%
Volume: 498.89M
May 20, 2022 5:03p
loading...
/zigman2/quotes/209899244/delayed
HK : Hong Kong
$ 48.60
-0.50 -1.02%
Volume: 27.61M
May 23, 2022 4:08p
P/E Ratio
9.27
Dividend Yield
3.68%
Market Cap
$1194.73 billion
Rev. per Employee
$5.48M
loading...
/zigman2/quotes/210188047/delayed
CN : China: Shanghai
¥ 39.49
-0.47 -1.18%
Volume: 61.81M
May 23, 2022 3:00p
P/E Ratio
8.04
Dividend Yield
3.85%
Market Cap
¥1016.03 billion
Rev. per Employee
¥4.53M
loading...
/zigman2/quotes/208876947/composite
US : U.S.: OTC
$ 31.08
+1.32 +4.43%
Volume: 44,851
May 20, 2022 3:49p
P/E Ratio
8.11
Dividend Yield
2.64%
Market Cap
$152.22 billion
Rev. per Employee
$705,934
loading...
/zigman2/quotes/209353019/delayed
CN : China: Shanghai
¥ 19.68
-0.01 -0.05%
Volume: 80.02M
May 23, 2022 3:00p
P/E Ratio
4.73
Dividend Yield
5.26%
Market Cap
¥409.04 billion
Rev. per Employee
¥6.32M
loading...
/zigman2/quotes/203910009/delayed
CN : China: Shanghai
¥ 3.79
+0.01 +0.26%
Volume: 44.12M
May 23, 2022 3:00p
P/E Ratio
5.11
Dividend Yield
5.62%
Market Cap
¥155.13 billion
Rev. per Employee
¥5.72M
loading...
/zigman2/quotes/200749234/composite
US : U.S.: OTC
$ 3.68
+0.10 +2.65%
Volume: 94.00
May 19, 2022 2:26p
P/E Ratio
3.20
Dividend Yield
6.79%
Market Cap
$23.24 billion
Rev. per Employee
$828,852
loading...
/zigman2/quotes/206600939/delayed
CN : China: Shenzhen
¥ 14.83
-0.19 -1.26%
Volume: 64.77M
May 23, 2022 3:00p
P/E Ratio
7.37
Dividend Yield
1.54%
Market Cap
¥291.48 billion
Rev. per Employee
¥6.67M
loading...
/zigman2/quotes/207929595/delayed
HK : Hong Kong
$ 6.75
+0.08 +1.20%
Volume: 10.82M
May 23, 2022 4:08p
P/E Ratio
2.11
Dividend Yield
3.74%
Market Cap
$57.75 billion
Rev. per Employee
$5.20M
loading...
/zigman2/quotes/209475075/composite
US : U.S.: OTC
$ 8.34
-0.06 -0.71%
Volume: 21.00
May 16, 2022 3:33p
P/E Ratio
2.03
Dividend Yield
3.45%
Market Cap
$7.36 billion
Rev. per Employee
$668,481
loading...
/zigman2/quotes/208724890/delayed
HK : Hong Kong
$ 32.65
-0.15 -0.46%
Volume: 1.64M
May 23, 2022 4:08p
P/E Ratio
11.98
Dividend Yield
5.51%
Market Cap
$158.80 billion
Rev. per Employee
$2.37M
loading...
/zigman2/quotes/200560946/composite
US : U.S.: OTC
$ 4.11
-0.01 -0.24%
Volume: 150,059
May 20, 2022 3:46p
P/E Ratio
11.72
Dividend Yield
4.84%
Market Cap
$20.23 billion
Rev. per Employee
$305,486
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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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