By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) — Japanese stocks overcame volatility to advance Tuesday as a pullback in the yen spurred exporters, while shares in Hong Kong and Shanghai jumped on a rally in property and brokerage firms.
Japan’s Nikkei Stock Average /zigman2/quotes/210597971/delayed JP:NIK -0.23% ended the day 1.2% higher at 14,311.98, after witnessing sharp swings and sliding under the 14,000-point level in early trading. The broader Topix /zigman2/quotes/210598092/delayed JP:180460 +0.61% climbed 1.2%. Both benchmarks changed direction a few times Tuesday after plunging more than 3% in the previous session.
“The Nikkei [Average] continues to dance like a puppet on strings, as questions regarding the strength and validity of its bond market ramps up,” said IG Markets strategist Evan Lucas.
Last week, a sudden spike in Japanese government bond yields helped push the Nikkei Average to a 7.3% plunge on Thursday.
Elsewhere, Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -0.74% rose 0.2% for its first advance in six trading days and South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 -0.57% gained 0.3%.
Among stock movers in Tokyo, Fast Retailing Co. /zigman2/quotes/200663563/delayed JP:9983 -3.39% /zigman2/quotes/203924235/delayed FRCOY -6.68% climbed 2.3%, Sony Corp. /zigman2/quotes/201361720/delayed JP:6758 +1.54% /zigman2/quotes/208567357/composite SNE -2.56% gained 3.2%, and Mazda Motor Corp. /zigman2/quotes/204777714/delayed JP:7261 +3.97% /zigman2/quotes/206326885/delayed MZDAY -2.47% rose 6.5%, as the U.S. dollar /zigman2/quotes/210561789/realtime/sampled USDJPY +0.2121% climbed to ¥102.08 after dropping below ¥101 on Monday.
China’s role in reining in North Korea
China's relationship with North Korea is coming into focus as Pyongyang refuses to engage in talks with the international community.
Chinese property and brokerage stocks posted strong gains on strong buying witnessed in the afternoon trading session.
Poly Real Estate Group Co. /zigman2/quotes/201864015/delayed CN:600048 -1.86% gained 3.3%, Gemdale Corp. /zigman2/quotes/208026094/delayed CN:600383 -2.45% climbed 4.4% and Haitong Securities Co. /zigman2/quotes/203443667/delayed CN:600837 +1.25% rose 4.8% in Shanghai trading. The Hong Kong-listed shares of Haitong /zigman2/quotes/204388323/delayed HK:665 +1.27% rose 4.7%, while China Resources Land Ltd. /zigman2/quotes/202417326/delayed HK:1109 -0.95% /zigman2/quotes/201656413/delayed CRBJF 0.00% added 3.2%.
Also in Hong Kong, China Construction Bank Corp. /zigman2/quotes/208974133/delayed HK:939 +1.72% /zigman2/quotes/207732534/delayed CICHY -0.43% rose 1.4%, and Industrial & Commercial Bank of China Ltd. /zigman2/quotes/201401473/delayed HK:1398 +3.60% /zigman2/quotes/202401350/delayed IDCBY +0.30% added 1.7%, with Bernstein Research raising its price target for both stocks.
“We believe that further reforms from the new leadership will serve as a catalyst for a re-rating of the bank stocks upwards,” Bernstein wrote in a note to clients.
Banks supported the Australian market snap out of a losing streak, caused by profit-taking in high dividend-yielding stocks.
Westpac Banking Corp. /zigman2/quotes/203084975/delayed AU:WBC +0.12% /zigman2/quotes/206661702/composite WBK -0.47% gained 0.9%, heavyweight Commonwealth Bank of Australia /zigman2/quotes/200638713/delayed AU:CBA +0.08% /zigman2/quotes/207018701/delayed CBAUF +0.15% added 0.6%, and Bank of Queensland Ltd. /zigman2/quotes/205781039/delayed AU:BOQ +1.00% rose 1.4%.