Bulletin
Investor Alert

New York Markets Open in:

Asia Markets Archives | Email alerts

June 27, 2013, 5:08 a.m. EDT

Japan, Korea stocks rally amid Fed hopes

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    NIKKEI 225 Index (NIK)
  • X
    KOSPI Composite Index (180721)
  • X
    S&P/ASX 200 Benchmark Index (XJO)

or Cancel Already have a watchlist? Log In

By V. Phani Kumar, MarketWatch

HONG KONG (MarketWatch) — Japanese and South Korean stocks jumped Thursday on hopes the Federal Reserve will maintain its bond purchases for longer, while mainland Chinese shares continued to drop amid worries over policy outlook.

Japan’s Nikkei Stock Average /zigman2/quotes/210597971/delayed JP:NIK +2.41%  ended 3% higher and South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 -2.80% rose 2.9%, while Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +1.74%  gained 1.7%.

Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI +1.54%  climbed 0.5%, rising for a third straight day.

/zigman2/quotes/210598069/delayed 180721 3,012.95, -86.74, -2.80%
/zigman2/quotes/210598065/realtime DJIA 30,932.37, -469.64, -1.50%
Kospi Vs. Dow Jones Industrial Average
Year-to-date percentage changes

The advances followed an upbeat finish on Wall Street overnight after U.S. first-quarter GDP growth was revised down to 1.8%, from an earlier estimate of 2.4%.

“The concerns of the market that prompted a selloff in recent weeks appear to have subsided,” said CMC Markets sales trader Miguel Audencial.

“The first-quarter U.S. gross domestic product figures increased [by less] than forecast, which the market read as a signal that the U.S. Fed is likely to step on the brakes at a later date than previously feared,” Audencial said.

However, China’s Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP +1.21% ended 0.1% lower for its 16th drop in 18 trading days.

The benchmark had risen more than 1% earlier in the day after official data showing profits at Chinese industrial firms rose more than 15% from a year-earlier in May. But the index let those gains slip by amid festering worries over high borrowing costs in the Shanghai interbank money markets and concerns about a slowing economy.

Click to Play

The Next 24: Will Fed soothe markets?

Bed Bath & Beyond nears 52-week highs as it releases earnings. European stocks look to extend rally. Fed officials hope to soothe markets.

While banks were broadly higher, coal miners and brokerages declined, with Citic Securities Co. /zigman2/quotes/210326178/delayed CN:600030 -5.98%   /zigman2/quotes/207216844/composite CIIHF +0.63%  losing 1.5% and China Shenhua Energy Co. /zigman2/quotes/202621923/delayed CN:601088 +0.39%   /zigman2/quotes/206839995/composite CSUAY -1.81%  dropping 1.9%.

In Hong Kong, meanwhile, shares of Industrial & Commercial Bank of China Ltd. /zigman2/quotes/201401473/delayed HK:1398 -0.59% /zigman2/quotes/202401350/composite IDCBY -1.88%  gained 1.3%, on top of Wednesday’s 6.8% surge, and footwear major Belle International Holdings Ltd.  jumped 4.6%.

Meanwhile, technology shares led the strong advance in Seoul, with heavyweight Samsung Electronics Co. /zigman2/quotes/202367843/composite SSNLF 0.00% /zigman2/quotes/209800866/delayed KR:005930 -3.28%  soaring 6.2% after recent losses, while LG Display Co. /zigman2/quotes/204466928/composite LPL -1.96% /zigman2/quotes/204226570/delayed KR:034220 -4.64%  added 3.4%.

Data released on Thursday showed South Korea’s current-account surplus rose to a record high in May on the back of robust exports despite a global slowdown, helping to lift the market’s mood.

In Tokyo trade, the real-estate and banking sectors were higher.

Shares of Mitsui Fudosan Co. /zigman2/quotes/205394574/delayed JP:8801 +2.46% /zigman2/quotes/208297288/composite MTSFF +0.49% rallied 9.6%, and Mitsubishi Estate Co. /zigman2/quotes/208910776/delayed JP:8802 +1.25% /zigman2/quotes/204837054/composite MITEY -1.41% jumped 9.4%, while Shinsei Bank Ltd. /zigman2/quotes/210166295/delayed JP:8303 +3.95% /zigman2/quotes/209928917/composite SKLKF +7.04% and Sumitomo Mitsui Financial Group Inc. /zigman2/quotes/203656770/delayed JP:8316 +1.28% /zigman2/quotes/206471416/composite SMFG -2.09% advanced 3.9% and 3%, respectively.


Reuters
Australia Prime Minister Kevin Rudd

In Australia, shares of in the financial and retailer sectors advanced, tracking a positive lead from Wall Street and most other regional markets.

The gains came amid major political changes, with Kevin Rudd returning as prime minister after he defeated incumbent Julia Gillard in a Labor Party leadership vote late Wednesday.

TD Securities’s Asia-Pacific Research head Annette Beacher said the market would largely shrug off the political change, as the prospect of a Labor loss in upcoming general elections was a “near certainty.”

“We believe a decisive change of government is positive for business and consumer confidence,” she said.

Commonwealth Bank of Australia /zigman2/quotes/200638713/delayed AU:CBA +3.13% /zigman2/quotes/207018701/composite CBAUF -4.52% rose 2.8%, and Woolworths Ltd. /zigman2/quotes/209906204/delayed AU:WOW +2.26%   /zigman2/quotes/208623225/composite WOLWF -3.01% climbed 3.1%.

/zigman2/quotes/210597971/delayed
JP : Nikkei
29,663.50
+697.49 +2.41%
Volume: 0.00
March 1, 2021 3:15p
loading...
/zigman2/quotes/210598069/delayed
KR : Korea Exchange
3,012.95
-86.74 -2.80%
Volume: 1.36M
Feb. 26, 2021 3:33p
loading...
/zigman2/quotes/210598100/delayed
AU : S&P ASX
6,789.60
+116.30 +1.74%
Volume: 734,282
March 1, 2021 5:18p
loading...
/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
29,427.89
+447.68 +1.54%
Volume: 2.43M
March 1, 2021 4:06p
loading...
/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,551.40
+42.32 +1.21%
Volume: 31.55B
March 1, 2021 3:01p
loading...
/zigman2/quotes/210326178/delayed
CN : China: Shanghai
¥ 25.62
-1.63 -5.98%
Volume: 280.31M
March 1, 2021 3:00p
P/E Ratio
22.00
Dividend Yield
1.95%
Market Cap
¥321.89 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/207216844/composite
US : U.S.: OTC
$ 2.17
+0.01 +0.63%
Volume: 0.00
Jan. 6, 2021 5:19p
P/E Ratio
12.93
Dividend Yield
N/A
Market Cap
$53.97 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/202621923/delayed
CN : China: Shanghai
¥ 17.82
+0.07 +0.39%
Volume: 36.98M
March 1, 2021 3:00p
P/E Ratio
8.92
Dividend Yield
7.07%
Market Cap
¥334.43 billion
Rev. per Employee
¥3.06M
loading...
/zigman2/quotes/206839995/composite
US : U.S.: OTC
$ 7.59
-0.14 -1.81%
Volume: 90,967
Feb. 26, 2021 3:51p
P/E Ratio
6.65
Dividend Yield
7.77%
Market Cap
$51.77 billion
Rev. per Employee
$443,180
loading...
/zigman2/quotes/201401473/delayed
HK : Hong Kong
HK$ 5.03
-0.03 -0.59%
Volume: 219.52M
March 1, 2021 3:59p
P/E Ratio
5.58
Dividend Yield
5.71%
Market Cap
HK$2177.76 billion
Rev. per Employee
HK$3.26M
loading...
/zigman2/quotes/202401350/composite
US : U.S.: OTC
$ 13.08
-0.25 -1.88%
Volume: 93,355
Feb. 26, 2021 3:59p
P/E Ratio
5.64
Dividend Yield
4.72%
Market Cap
$280.73 billion
Rev. per Employee
$416,749
loading...
/zigman2/quotes/202367843/composite
US : U.S.: OTC
$ 44.20
0.00 0.00%
Volume: 0.00
Feb. 17, 2021 5:19p
P/E Ratio
13.55
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
N/A
loading...
/zigman2/quotes/209800866/delayed
KR : S. Korea: KRX
82,500.00
-2,800 -3.28%
Volume: 38.52M
Feb. 26, 2021 3:30p
P/E Ratio
21.48
Dividend Yield
1.72%
Market Cap
₩552413.27 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/204466928/composite
US : U.S.: NYSE
$ 9.99
-0.20 -1.96%
Volume: 958,934
Feb. 26, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$7.20 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/204226570/delayed
KR : S. Korea: KRX
22,600.00
-1,100 -4.64%
Volume: 5.21M
Feb. 26, 2021 3:30p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
₩8086.63 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/205394574/delayed
JP : Japan: Tokyo
¥ 2,459.00
+59.00 +2.46%
Volume: 2.71M
March 1, 2021 3:00p
P/E Ratio
13.22
Dividend Yield
1.79%
Market Cap
¥2309.14 billion
Rev. per Employee
¥91.34M
loading...
/zigman2/quotes/208297288/composite
US : U.S.: OTC
$ 22.55
+0.11 +0.49%
Volume: 0.00
Feb. 24, 2021 3:54p
P/E Ratio
12.93
Dividend Yield
N/A
Market Cap
$22.72 billion
Rev. per Employee
$840,062
loading...
/zigman2/quotes/208910776/delayed
JP : Japan: Tokyo
¥ 1,861.00
+23.00 +1.25%
Volume: 1.99M
March 1, 2021 3:00p
P/E Ratio
16.64
Dividend Yield
1.61%
Market Cap
¥2460.30 billion
Rev. per Employee
¥135.38M
loading...
/zigman2/quotes/204837054/composite
US : U.S.: OTC
$ 17.49
-0.25 -1.41%
Volume: 110,073
Feb. 26, 2021 3:59p
P/E Ratio
16.75
Dividend Yield
1.10%
Market Cap
$23.09 billion
Rev. per Employee
$1.25M
loading...
/zigman2/quotes/210166295/delayed
JP : Japan: Tokyo
¥ 1,580.00
+60.00 +3.95%
Volume: 1.10M
March 1, 2021 3:00p
P/E Ratio
13.38
Dividend Yield
0.63%
Market Cap
¥329.89 billion
Rev. per Employee
¥58.16M
loading...
/zigman2/quotes/209928917/composite
US : U.S.: OTC
$ 14.59
+0.96 +7.04%
Volume: 60.00
Feb. 26, 2021 3:24p
P/E Ratio
13.05
Dividend Yield
N/A
Market Cap
$3.14 billion
Rev. per Employee
$534,900
loading...
/zigman2/quotes/203656770/delayed
JP : Japan: Tokyo
¥ 3,790.00
+48.00 +1.28%
Volume: 6.60M
March 1, 2021 3:00p
P/E Ratio
9.86
Dividend Yield
5.01%
Market Cap
¥5128.15 billion
Rev. per Employee
¥60.34M
loading...
/zigman2/quotes/206471416/composite
US : U.S.: NYSE
$ 7.02
-0.15 -2.09%
Volume: 1.43M
Feb. 26, 2021 4:00p
P/E Ratio
9.71
Dividend Yield
4.34%
Market Cap
$48.13 billion
Rev. per Employee
$555,002
loading...
/zigman2/quotes/200638713/delayed
AU : Australia: Sydney
$ 84.11
+2.55 +3.13%
Volume: 2.48M
March 1, 2021 4:10p
P/E Ratio
18.72
Dividend Yield
2.95%
Market Cap
$144.55 billion
Rev. per Employee
$917,769
loading...
/zigman2/quotes/207018701/composite
US : U.S.: OTC
$ 64.29
-3.04 -4.52%
Volume: 0.00
Feb. 22, 2021 2:31p
P/E Ratio
20.60
Dividend Yield
N/A
Market Cap
$114.70 billion
Rev. per Employee
$615,248
loading...
/zigman2/quotes/209906204/delayed
AU : Australia: Sydney
$ 40.29
+0.89 +2.26%
Volume: 2.52M
March 1, 2021 4:10p
P/E Ratio
43.76
Dividend Yield
2.51%
Market Cap
$49.65 billion
Rev. per Employee
$296,163
loading...
/zigman2/quotes/208623225/composite
US : U.S.: OTC
$ 30.97
-0.96 -3.01%
Volume: 0.00
Feb. 25, 2021 2:27p
P/E Ratio
49.62
Dividend Yield
N/A
Market Cap
$40.19 billion
Rev. per Employee
$198,540
loading...

Varahabhotla Phani Kumar is a reporter in MarketWatch's Hong Kong bureau. Follow him on Twitter @MktwKumar.

This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »

Partner Center

World News from MarketWatch

Link to MarketWatch's Slice.