Asian shares higher on US gains
In this Wednesday, May 15, 2013, file photo, people are reflected on the electronic stock board of a securities firm in Tokyo. Asian shares rose on Monday reflecting a bullish mood on Wall Street and extending their two-week rally, buoyed by better-than-expected US data. AP FILE PHOTO
HONG KONG—Asian shares rose on Monday reflecting a bullish mood on Wall Street and extending their two-week rally, buoyed by better-than-expected US data.
Tokyo stocks were up 1.47 percent, or 222.69 points, to 15,360.81, and Sydney gained 0.54 percent, or 28.2 points, to close at 5,209.0.
Hong Kong ended 1.78 percent higher, or 410.35 points, to end at 23,493.03, as Shanghai closed up 0.75 percent, or 17.12 points, to 2,299.99, and Seoul finished flat at 0.22 percent, or 4.38 points, to 1,982.43.
Chinese shares were up as investors hunted for bargains in property and banking stocks, dealers said.
“Fund managers are buying property developers and banks, both of which are trading at low price-to-earnings ratios,” Soochow Securities analyst Deng Wenyuan told Dow Jones Newswires.
Tokyo stocks were buoyed by gains in overseas stock markets last week, as a Japanese minister said the recent correction against the yen was nearly over.
“Bullish equities markets and the progressively weaker yen should help drive the market to a fresh multi-year high after much profit-taking in the last several sessions,” said Hiroichi Nishi, general manager of equities at SMBC Nikko Securities.
US stocks had closed another week of record highs Friday as investors focused on the positive side of mixed economic news and corporate earnings. Global stocks have rallied over the past four weeks, bringing up market capitalization by $2.3 trillion.
The Dow Jones Industrial Average jumped 0.80 percent to 15,354.40 while the broad-based S&P 500 rose 0.95 percent to 1,666.12.
A pair of better-than-expected US reports Friday—on consumer confidence and the economic outlook—drove a rally that pushed the Dow and S&P 500 to end-of-the-week all-time highs for the third straight week.
The dollar was changing hands at 102.69 yen in Tokyo afternoon trade, down from 103.19 yen in New York late Friday but still up from the lower 102-yen range seen before the Tokyo market closed on Friday.
The dollar dipped early Monday after Economy, Trade and Industry Minister Akira Amari on Sunday suggested the Japanese government may not want the yen to weaken further.
Responding to a question on how far the unit should fall, Amari said: “It’s being said that the correction of the strong yen is largely completed. If the yen keeps on weakening a lot more, it will have a negative impact on peoples’ lives (by pushing up import costs).”
His comment came after the dollar rose past the 103-yen mark for the first time in more than four years late Friday, making a three-percent gain in the past week alone and a 30-percent rise since mid-November.
The euro was quoted at $1.2841 and 131.86 yen against $1.2834 and 132.44 yen in US trade.
Oil was down in Asian trade with the US benchmark contract, West Texas Intermediate for June delivery, was down 19 cents at $95.83 a barrel and Brent North Sea crude for delivery in July dropping five cents to $104.59.
Gold was at $1,355.55 at 1100 GMT from $1,379.02 late on Friday and just above a two-year low.
In other markets:
— Wellington rose 0.82 points to 4,598.66.
Air New Zealand was up 0.99 percent to NZ$1.535, and Fletcher Building fell 1.90 percent at NZ$8.28.
— Taipei was up 0.11 percent, or 8.86 points, to 8,377.05.
Taiwan Semiconductor Manufacturing Co. was 0.44 percent higher at Tw$114.0 while leading smartphone maker HTC gained 2.46 percent to Tw$292.0
— Manila fell 0.06 percent, or 4.49 points, to 7,275.38.
Megaworld Corp. fell 3.70 percent to 3.90 pesos, while Alliance Global Group Inc. dropped 1.35 percent to 25.65 pesos.
— Bangkok gained 0.95 percent or 15.44 points to 1,643.40.
Bangkok Bank lost 0.45 percent to 221 baht, while PTT rose 2.39 percent to 343 baht.
— Jakarta ended up 69.29 points, or 1.35 percent, at 5,214.98.
Astra International rose 2.13 percent to 7,200 rupiah, while Indo-Rama Synthetics lost 3.70 percent to 1,300 rupiah.
— Singapore rose 0.14 percent, or 4.93 points, to close at 3,454.23.
Singapore Telecom finished 1.24 percent higher at Sg$4.07 and container shipping firm Neptune Orient Lines added 1.8 percent to finish the day at Sg$1.13.
— Kuala Lumpur shares rose 7.99 points, or 0.45 percent, to 1,777.15.
CIMB Group gained 1.2 percent to 8.40 ringgit, while Petronas Gas climbed 1.0 percent to 22.26. Astro Malaysia Holdings shed 0.3 percent to 3.14 ringgit.
— Mumbai finished down 0.31 percent, or 62.14 points, at 20,223.98.
State-run oil exploration giant ONGC dropped 2.09 percent to 332.90 rupees while private bank ICICI slipped 1.62 percent to 1,209.65 rupees.—Alex Ogle with Dow Jones Newswires
Originally posted: 11:17 am | Monday, May 20th, 2013
