A weaker yen and robust economic data boosted Japanese stocks Monday, while mainland Chinese markets fell for a fourth straight session on continued speculation that Beijing will impose restrictions on property transactions.
The Nikkei 225 index in Tokyo gained 112.17 points, or 1.1%, to end the week’s first session at 10,524.26, its highest finish since October.
In Tokyo, exporters enjoyed a broad-based rally on the yen's recent weakness against the dollar, which makes Japanese products more competitive. Toyota Motor Corp. was up 1.5%, Honda Motor Co. jumped 3.6% and Canon rose 2.1%.
Machinery maker Komatsu gained 2.9%, after data showed that Japanese core machinery orders rose 9.7% in June from the previous month.
Shares of Mitsubishi Rayon surged 19.8% in heavy trading volume, on hopes that Mitsubishi Chemical Holdings Corp. was lining up a takeover that could be worth more than $2 billion U.S., as reported by the Nikkei.
Mitsubishi Chemical shares rose 4.7%, also in strong volume. A spokesman for Mitsubishi Chemical said the deal is one option under consideration. Mitsubishi Rayon said nothing has been decided.
In Hong Kong, the Hang Seng index gained back what it lost Friday, and then some, 554.15 points, or 2.7%, to 20,929.52, its highest finish in nearly a year.
In Hong Kong, gains were led by market heavyweights HSBC Holdings and China Mobile -- which together have a weighting of more than 25% in the Hang Seng Index -- amid hopes they will list their shares in Shanghai, where valuations tend to be higher. HSBC added 3.1% while China Mobile gained 3.4%.
China Shenhua Energy rose 2.8% after reporting better-than-expected preliminary results.
Australia's S&P/ASX 200 inched up, with most of its early gains pared by losses in mining giant Rio Tinto.
Rio ended down 3.3% after a Website affiliated with China's state secrets bureau posted accusations that Rio illegally obtained information about China's steel sector for six years, which resulted in Chinese steelmakers being overcharged more than $100 billion U.S. for iron ore.
The National Administration for Protection of State Secrets said after markets had closed that the essay didn't represent the government view.
Ord Minnett analyst Peter Arden said investors had been hoping that the issue of four Rio Tinto employees detained in China was cooling off, but the latest statements have revived concerns.
Arden said the issue may weigh on Rio Tinto's shares until it is resolved, even though iron-ore sales will continue. "The reality is that China needs the iron ore," he said.
In Sydney, banking stocks fell after sharp gains recently, with Commonwealth Bank of Australia down 1.4% and Westpac Banking Corp. off 0.7%.
In Taiwan, construction and cement stocks were up on anticipated construction demand to repair damage caused by typhoon Morakot. Shining Building gained 3.5% and Asia Cement added 2.8%.
CHINA
Shanghai’s 300 Composite Index lost 10.56 points, or 0.3%, to 3,544.54, its fourth straight downward session. In Shanghai, property and banking stocks led the decline, with Poly Real Estate Group Co. down 2.5% and Shanghai Pudong Development Bank down 1.8%.
Elsewhere:
Singapore’s Straits Times Index had the day off.
South Korea’s Kospi index picked up 0.11 points, or 0.01%, to 1,576.11
Taiwan’s Taiex returned from a holiday to gain 14.22 points, or 0.2%, to 6,882.87
New Zealand’s NZX 50 Index gained 11.98 points, or 0.4%, to 3,080.97
Australia’s S&P/ASX 200 inched ahead 4.70 points, or 0.1%, to 4,304.10
