Japanese stocks
rose Monday, major Asian markets by a wide margin, with the yen falling as
investors interpreted a statement by the Group of 20 leading economies Friday
to offer the support of the international community in Tokyo monetary stimulus.
Japan's Nikkei (TYO: JP: NIK) rose 1.9%, getting a shot in the arm while the dollar climbed back to just below 100 yen level psychologically important.
The G20 leaders on Friday refrained from criticizing Japan for policies that weaken the yen and provided a boost to its exporters competitive.
He said monetary policy actions in Japan were intended to end deflation, while adding that the government should "define a credible fiscal plan in the medium term."
"There was a lot of attention in currencies in the G-20, but the end result left the door open to further [yen] weakness .... Apart from a probable violation of ¥ 100 is not likely to be much further through the G-20 this week, "said Credit Agricole chief global market research in Asia, Mitul Kotecha.
Elsewhere in the region, from Australia S & P / ASX 200 (ASX: AU: XJO) gained 0.3%, Taiwan's TAIEX (TPE: XX: Y9999) by 0.6% and Korea's Kospi South (KRX: KR: SEU) rose 0.1%.
Among the markets in China, the Hang Seng Index (HSI: HK: HSI) rose 0.1% higher in Hong Kong, while the Shanghai Composite (SHA: CN: 000001) lost 0.3% to return part reported earnings last week despite strong losses for global commodity prices and some concerns about the trajectory of China's economic growth.
The downward movement in Shanghai came as insurers fell after an earthquake of 7.0 magnitude in Sichuan province that killed at least 186 people and injuring thousands, while some construction-related shares advanced hopes for reconstruction activities in the affected region.
In Shanghai, the China Life Insurance Co. (NYSE: LFC) (HKG: HK: 2628) (SHA: CN: 601628) fell 2.7% and Ping An Insurance Group Co. (SHA: CN: 601318) (OTN: PNGAY) lost 1.4%.
Those losses helped offset a 0.9% increase in the shares of Anhui Conch Cement Co. (SHA: CN: 600585) and an increase of 0.2% in Baoshan Iron & Steel Co. (SHA: CN: 600019)
In Hong Kong, China Life (HKG: HK: 2628) (SHA: CN: 601628) lost 1.9% and Ping An (HKG: HK: 2318) fell 1.6%, while Anhui Conch (HKG: HK : 914) Advanced 1% and Angang Steel Co. (HKG: HK: 347) (OTN: Anggy) rose 2.5%.
Some economists said that despite the magnitude of the latest tragedy, the economic impact is likely to be lower than the May 2008 earthquake in Wenchuan, causing more devastation.
Japan's Nikkei (TYO: JP: NIK) rose 1.9%, getting a shot in the arm while the dollar climbed back to just below 100 yen level psychologically important.
The G20 leaders on Friday refrained from criticizing Japan for policies that weaken the yen and provided a boost to its exporters competitive.
He said monetary policy actions in Japan were intended to end deflation, while adding that the government should "define a credible fiscal plan in the medium term."
"There was a lot of attention in currencies in the G-20, but the end result left the door open to further [yen] weakness .... Apart from a probable violation of ¥ 100 is not likely to be much further through the G-20 this week, "said Credit Agricole chief global market research in Asia, Mitul Kotecha.
Elsewhere in the region, from Australia S & P / ASX 200 (ASX: AU: XJO) gained 0.3%, Taiwan's TAIEX (TPE: XX: Y9999) by 0.6% and Korea's Kospi South (KRX: KR: SEU) rose 0.1%.
Among the markets in China, the Hang Seng Index (HSI: HK: HSI) rose 0.1% higher in Hong Kong, while the Shanghai Composite (SHA: CN: 000001) lost 0.3% to return part reported earnings last week despite strong losses for global commodity prices and some concerns about the trajectory of China's economic growth.
The downward movement in Shanghai came as insurers fell after an earthquake of 7.0 magnitude in Sichuan province that killed at least 186 people and injuring thousands, while some construction-related shares advanced hopes for reconstruction activities in the affected region.
In Shanghai, the China Life Insurance Co. (NYSE: LFC) (HKG: HK: 2628) (SHA: CN: 601628) fell 2.7% and Ping An Insurance Group Co. (SHA: CN: 601318) (OTN: PNGAY) lost 1.4%.
Those losses helped offset a 0.9% increase in the shares of Anhui Conch Cement Co. (SHA: CN: 600585) and an increase of 0.2% in Baoshan Iron & Steel Co. (SHA: CN: 600019)
In Hong Kong, China Life (HKG: HK: 2628) (SHA: CN: 601628) lost 1.9% and Ping An (HKG: HK: 2318) fell 1.6%, while Anhui Conch (HKG: HK : 914) Advanced 1% and Angang Steel Co. (HKG: HK: 347) (OTN: Anggy) rose 2.5%.
Some economists said that despite the magnitude of the latest tragedy, the economic impact is likely to be lower than the May 2008 earthquake in Wenchuan, causing more devastation.
"As the impact of earthquake Lushan [Saturday] is limited to only a few
counties in remote mountainous areas with small populations (total about
300,000), it is expected that the need for reconstruction is relatively
small," said Bank of America Merrill Lynch economist Ting Lu.
Assuming that the budget for earthquake reconstruction finally amounts to about
10 billion yuan ($ 1,520 million), will be equal to 0.4% of gross domestic
product in the province of Sichuan, and 0.02% of GDP China in 2012, Lu said.
In Tokyo, meanwhile, exporters gathered to lead the way, with the dollar
(ICAPC: USDJPY) buys 99.80 yen in Tokyo morning trade on average, compared with
99.52 yen in North America on Friday. The dollar has not exceeded the level of
100 yen since April 2009, according to FactSet Research.
Shares of Canon Inc. (TYO: JP: 7751) (NYSE: CAJ) added 2.4%, Nissan Motor Co.
(TYO: JP: 7201) (OTN: NSANY) gained 3.6%, and Fujitsu Ltd. (TYO: JP: 6702)
(OTN: FJTSY) rose 4.4%.
Finance also met with the support of the G-20 to fight in Japan to end
deflation, with Mitsubishi UFJ Financial Group Inc. (TYO: JP: 8306) (NYSE: MTU)
rising to 2.5% , and Shinsei Bank Ltd. (TYO: JP: 8303) (OTN: SKLKF) climbing
3.1%.
Shares of Mitsui Engineering & Shipbuilding Co. (TYO: JP: 7003) soared
13.6% in heavy trading volume after reports in the Japanese media that the
company is in preliminary talks for possible integration with Kawasaki Heavy
Industries Ltd.
Kawasaki Heavy shares (TYO: JP: 7012) (OTN: KWHIF) gained 1.8%.
Astellas Pharma Inc. (TYO: JP: 4503) (OTN: ALPMY) rose 1.4% after the Nikkei newspaper reported the company probably reserved a 14% increase in operating profit of the group for the year ended 31 March, exceeding projections.
Astellas Pharma Inc. (TYO: JP: 4503) (OTN: ALPMY) rose 1.4% after the Nikkei newspaper reported the company probably reserved a 14% increase in operating profit of the group for the year ended 31 March, exceeding projections.
Back in Australia, some commodity stocks advanced after gold prices rallied to
raise more than $ 1,400 an ounce. Shares of Perseus Mining Limited (ASX: AU:
PRU) (OTN: PMNXF) increased 2.6%, while Newcrest Mining Ltd. (ASX: AU: NCM)
(OTN: NCMGY) rose 0.2%.
Also in Sydney, shares of Oz Minerals Ltd. (ASX: AU: OZL) (OTN: OZMLF) skidded
7.9% after cutting its forecast for copper production.
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