South Korean and Japanese shares began a new quarter on a positive note Monday, with gains in Seoul coming after Moody’s raised the country’s credit rating outlook, while Tokyo stocks got a lift as a downbeat tankan survey weighed on the yen.
In Japan, the Nikkei 225 Index inched up 26.31 points, or 0.3%, to 10,109.90
In Hong Kong, the Hang Seng Index fell back 33.32 points, or 0.2%, to 20,522.30
But stocks in Hong Kong fell for a fourth straight session, with Sun Hung Kai Properties Ltd. suffering further losses on uncertainty following last week’s arrest of the firm’s two chairmen.
The day’s performance came after Asian stocks rounded out the first three months of this year with gains, including a near 20% advance for the Nikkei Average.
While U.S. stocks also ended the first quarter on an upbeat note, an official survey on Chinese manufacturing activity, released over the weekend, showed a much better-than-expected improvement in March. The result was in sharp contrast with a separate survey from HSBC the same day, which showed a contraction in monthly activity.
HSBC economists said the data kept Chinese monetary-policy easing hopes alive.
Losses for some property firms kept the Hong Kong market under pressure. Sun Hung Kai Properties fell 2.2%, extending sharp losses made late last week after the arrest of the firm’s two chairmen on suspicion of corruption.
The performance was mixed for other property stocks, with New World Development Co. falling 3.8%. But Cheung Hong Kong Holdings Ltd. and Sino Land Co. added 1.4% and 2.9%, respectively, to rebound from Friday’s losses.
Meanwhile, shares of some large Australian miners -- which are tied to the Chinese growth story -- climbed despite a broad decline in Sydney. BHP Billiton Ltd. rose 1.5%, Rio Tinto Ltd. advanced 1.2% and Fortescue Metals Group Ltd. climbed 2.4%.
In Hong Kong, shares of Mongolia-focused miner SouthGobi Resources Ltd. surged 18.2% on news Aluminum Corp. of China Ltd., also known as Chalco, had agreed to buy a controlling stake in the company. Chalco shares lost 1.9% after it agreed to pay a nearly 29% premium over SouthGobi’s closing share price on Friday.
South Korean stocks got a lift after Moody’s raised the outlook on the nation’s A1 rating to positive from stable, citing “very strong and improving” fiscal fundamentals and resilience in its external financing position.
Banks led the advance, with KB Financial Group Inc. rising 2.8% and Shinhan Financial Group Co. advancing 2.1%. Among exporters, Hyundai Motor Co. gained 3%.
Exporters were also propped up in Tokyo as the yen weakened against the dollar and the euro, following the tankan survey findings.
Honda Motor Co. rose 2.1%, Suzuki Motor Corp. climbed 2.4% and Canon Inc. added 2.1%.
Banking stocks also advanced after the Nikkei reported over the weekend that Japan’s top three lenders were expected to post a combined profit of around ¥2 trillion ($24.2 billion U.S.) for the year ended March 31, up 30% from the year-ago period.
Mitsubishi UFJ Financial Holdings Group Inc. jumped 3.4%, Mizuho Financial Group Inc. climbed 0.7% and Sumitomo Mitsui Financial Group Inc. rose 1.7%
CHINA
Markets in mainland China will be closed for much of the week for holiday-related celebrations
In other markets;
Korea’s Kospi Index regained 15.25 points, or 0.8%, to 2,029.29
The Taiex index in Taiwan shed 70.10 points, or 0.9%, to 7,862.90
Singapore’s Straits Times Index picked up 5.61 points, or 0.2%, to 3,016.07
New Zealand’s NZX 50 Index slid 15.93 points, or 0.5%, to 3,493.61
Australia’s S&P/ASX 200 Index subtracted 5.97 points, or 0.1%, to 4,329.27
