Most Asian markets advanced Monday as strong Chinese exports data and extended gains on Wall Street aided sentiment and helped push resource and banking stocks higher.
Hong Kong’s Hang Seng Index added 88.77, or 0.4%, to 20, 467.43
Japanese shares were a notable exception, unable to hang on to their early gains, with some banks and exporters reversing course as investors digested news of an election defeat for the ruling Democratic Party of Japan.
Japan’s Nikkei 225 average settled 37.21 points, or 0.4%, to 9,548.11
Tokyo-traded stocks went on a rollercoaster ride on fears of political uncertainty after the DPJ's losses in Sunday's Upper House elections. The DPJ claimed just 44 seats of the 121 seats contested -- less than 40% of the total -- down from 54. In last year's election, the DPJ took 64% of the seats at stake.
Shares of Canon Inc. dropped 0.9%, Toyota Motor Corp. ended flat and Mizuho Financial Group sank 2.8%, with all of them surrendering initial gains
Sentiment got a boost in some regional markets after Saturday's data showed China's exports in June grew 43.9% from the year-earlier month to a record $137 billion U.S., beating estimates.
The exports data suggested that global growth was holding up despite disappointing U.S. economic data.
Australian stocks ended higher, but sentiment and trading volumes were subdued as investors were unwilling to make big bets before Alcoa kicks off the U.S. earnings season later on Monday.
Rio Tinto gained 1% and BHP Billiton advanced 0.5%. Shares of DuluxGroup rose on their debut, following the company's spin-off from mining industry products and services firm Orica. Dulux shares ended at 2.54 Australian dollars ($2.21 U.S.), higher than its listing price of A$2.50, but lower than the day's high of A$2.78.
In Seoul, auto stocks and battery makers led gainers, with Hyundai Motor Co. rising 1.4% and Kia Motors Corp. up 1.2%. Battery makers were higher after local news agency Yonhap reported the government on Sunday said that it would invest 15 trillion won ($12.48 billion U.S.) in the rechargeable battery industry over the next 10 years. Samsung SDI Co. advanced 4.6% and LG Chem climbed 4.8%.
In foreign exchange markets, the U.S. dollar was stronger against the yen following the weekend's Upper House elections. The dollar rose to 88.88 yen from 88.65 yen in late New York trade on Friday, but was lower than the day's peak at 89.16 yen. The euro declined to 111.83 yen from 112.07 yen Friday. Against the greenback, it was changing hands for $1.2584 from $1.2641.
CHINA
Chinese banks broadly advanced on hopes policy makers will not introduce more credit tightening measures after the latest loans data.
Shanghai’s CSI 300 Index improved 29.11 points, or 1.1%, to 2,676.22
Financial institutions in China extended 603.4 billion yuan ($89.3 billion U.S.) worth of new yuan loans in June, central bank data showed Sunday. That was higher than estimated by analysts, but lower than the 639.4-billion yuan worth of new loans extended in May, highlighting the central bank's efforts to curb lending as Beijing works to gradually cool the domestic economy.
Bank of China rose 0.9% and China Merchants Bank advanced 2.1% in Shanghai; the stocks added 1% and 1.1% in Hong Kong.
Elsewhere;
Singapore’s Straits Times Index gained 8.15 points, or 0.3%, to 2,925.32
Korea’s Kospi index moved higher 11.04 points, or 0.6%, to 1,734
Taiwan’s Taiex Index slid 7.70 points, or 0.1%, to 7,639.55
New Zealand’s NZX index added 6.78 points, or 0.2%, to 3,012.03
Australia’s S&P/ASX 200 stepped forward 13.60 points, or 0.3%, to 4,409.90
