Weaker Yen Lifts Tokyo

Asian markets advanced Wednesday on robust earnings from Apple and better-than-expected euro-zone economic data, with stocks in Tokyo ending near a three-month high as the yen weakened on Japan's first annual trade deficit in three decades.

Australia's S&P/ASX 200 index rose 1.1% to 4,271.30, with banks leading the advance after a tame reading on consumer prices, while South Korean investors returned after a four-day holiday weekend to push the Kospi 0.1% higher to 1952.23.

In Tokyo, the Nikkei Stock Average climbed 1.1% to 8,883.69, a closing level it hasn't seen since Oct. 31. The gains came as the dollar rose as high as ¥77.98 during the session, compared with ¥77.74 late Tuesday and ¥77.02 late Monday in North America.

Markets in Hong Kong, Taipei and Shanghai, among others, remained closed for the Lunar New Year holidays.

Data released earlier in the day showed Japan recorded an annual trade deficit in 2011, its first since 1980.

"The point at which Japan's savings turn around in terms of momentum has long been seen as the time to sell the Japanese yen," said Sebastian Galy, strategist at Societe Generale.

Japanese exporters gained as the yen weakened, with Honda Motor rising 3.8%, Mazda Motor climbing 4.6%, and Sony zooming up 4.8%.

Toyota Motor rose 3%, also aided after the firm revised up its 2012 sales plan for Japan.

Shipping firms jumped in the region on improved investor sentiment, with Mitsui O.S.K. Lines advancing 7.6%, and Nippon Yusen K.K. climbing 3.6% in Tokyo, while Hanjin Shipping Holdings added 2.1% in Seoul.

The day's advance came despite a decline for the Dow Jones Industrial Average Tuesday, amid worries about stalled debt talks between Greece and its lenders, and downbeat results from McDonald's and Travelers Cos.

But after the closing bell, Apple reported a forecast-busting rise in first-quarter net profit, following a jump in iPhone sales. The results helped push Nasdaq 100 futures up 1%, or 25.25 points, to 2462.75.

The gains for U.S. stock index futures also came ahead of the conclusion of a two-day Federal Reserve policy meeting. For the first time, Fed officials will release forecasts for their best guess of the path of short-term rates for coming years.

Although Greece has yet to reach an agreement with its private creditors, and the International Monetary Fund cut its global growth forecast Tuesday, "risk sentiment has received some support from better economic data out of Europe," said Barclays Capital strategists in a report.

They were referring to preliminary data out Tuesday, which showed private-sector economic activity in the euro zone unexpectedly ticked up in January.

In Sydney, meanwhile, banking stocks advanced after quarterly inflation data appeared tame enough to keep hopes alive for an interest-rate cut from the Reserve Bank of Australia.

"We still think the next rate move is down but perhaps more a case of March than February. There's no immediate rush to cut rates at the moment," said Peter Esho, strategist at City Index.

Mortgage lenders on the move included Westpac Banking, up 3.5%, while Commonwealth Bank of Australia gained 2.4%, and National Australia Bank added 2%.

Property owners advancing included Westfield Group Australia, up 2.8%, and CFS Retail Property Trust, which ended 1.5% higher.

CLSA upgraded both firms to outperform Wednesday.

"Contrary to sentiment, we believe retail landlords will be able to maintain full occupancy during the near-term," they said, adding that vacancy rates are below 1%, domestic and international retailers are expanding, and rental-lease increases were maintained in 2011.

Write to Sarah Turner at sarah.turner@dowjones.com and V. Phani Kumar at phani.kumar@dowjones.com

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