By MarketWatch, MarketWatch
Stocks rallied in Asia early Monday, with Japan’s Nikkei and Hong Kong’s Hang Seng indexes leading the way. Australian stocks were also strong.
Japanese stocks /zigman2/quotes/210597971/delayed JP:NIK -0.44% were broadly higher thanks partly to a weaker yen after the news of President Trump’s infection with coronavirus dented the market on Friday. Auto, railway and financial stocks topped the gainers. Automaker Subaru Corp. /zigman2/quotes/203522406/delayed JP:7270 -0.10% is up 4.7%, Central Japan Railway /zigman2/quotes/205638698/delayed JP:9022 -1.02% is 4.1% higher and Dai-ichi Life Holdings /zigman2/quotes/208507587/delayed JP:8750 -1.88% is up 4.9%.
The U.S. dollar was fetching 105.56 Japanese yen /zigman2/quotes/210561789/realtime/sampled USDJPY +0.1691% , up from 105.09 as of Friday’s Tokyo stock market close. U.S. and Japan policy developments are being closely watched. The Nikkei Stock Average is up 1.3% early.
The Hang Seng /zigman2/quotes/210598030/delayed HK:HSI -1.57% was ahead just over 1.5% in initial trading.
Tech stocks are among the best performers, with Tencent Holdings /zigman2/quotes/204605823/delayed HK:700 +1.32% rising 2.8%, Xiaomi Corp. /zigman2/quotes/208140246/delayed HK:1810 -3.07% gaining 1.5% and Sunny Optical Technology up 0.5% /zigman2/quotes/206687505/delayed HK:2382 -0.82% . Property stocks are also higher, with Hang Lung Properties /zigman2/quotes/200230831/delayed HK:101 -3.95% gaining 2.7%, Henderson Land Development /zigman2/quotes/208724890/delayed HK:12 -1.68% rising 1.8% and Sun Hung Kai Properties /zigman2/quotes/209086152/delayed HK:16 -0.73% up 0.7%. Semiconductor Manufacturing International Corp. /zigman2/quotes/207270096/delayed HK:981 -2.50% is down 4.5% after saying that export controls imposed by the U.S. could have an adverse impact on its operations.
But Hong Kong-listed casino operators may remain under pressure as Macau’s Golden Week visitor data disappoint, Jefferies says. Visitor numbers to the special administrative region for the first three days of China’s weeklong holiday were 13% of 2019 levels due to lengthier visa approvals and stringent requirements for a negative virus test, the bank says.
Australia’s benchmark stock index shot up more than 2% early Monday as analysts saw reason for optimism in the country’s retail sales data. Excluding Victoria state, where there were strict lockdown measures, August sales seemed better, posting growth of 13% compared with 15% in July.
Stock valuations for many Aussie retailers are already pricing in strong sales, so investors should choose exposures carefully, UBS says. The bank favors retailers with attractive valuations, those that might benefit from the coronavirus situation because they have a strong online presence, or those with longer-term growth opportunities.
It names Woolworths /zigman2/quotes/209906204/delayed AU:WOW +1.12% , Harvey Norman /zigman2/quotes/203692911/delayed AU:HVN -0.76% , Adairs /zigman2/quotes/200532765/delayed AU:ADH +1.58% , Metcash /zigman2/quotes/203560772/delayed AU:MTS -0.57% , Bapcor /zigman2/quotes/204398496/delayed AU:BAP -0.26% and Collins /zigman2/quotes/203102126/delayed AU:CKF -0.42% UBS notes that nationwide August retail spending growth slowed to 7%, compared with 12% in July.
New Zealand’s NZX-50 /zigman2/quotes/211587880/delayed NZ:NZ50GR +1.69% edged slightly higher in early trading. Gains are driven by a2 Milk /zigman2/quotes/207461975/delayed NZ:ATM -0.09% , Synlait Milk /zigman2/quotes/200859627/delayed NZ:SML +0.85% , Ryman Healthcare /zigman2/quotes/207688158/delayed NZ:RYM +1.62% , Auckland International Airport and Port of Tauranga. Infant formula marketing company a2 Milk rose 0.7% after falling nearly 18% last week on a downgraded earnings outlook for FY 2021. Property for Industry was ups 1.5% after adding a NZ$65 million industrial estate in Auckland to its portfolio of commercial tenants.
The story was compiled from Dow Jones Newswires and Associated Press reports.