Asian markets ended mostly higher Monday, with Chinese metal and cement shares gaining on hopes government efforts to reduce overcapacity will benefit the industry.
Japan’s Nikkei 225 Index dropped off 69.63 points, or 0.7%, to 9,572.49
Hong Kong’s Hang Seng Index advanced 122.79 points, or 0.6%, to 21,801.59
Australian shares reversed early declines as miners edged higher on expectation of strong earnings growth. Japanese shares were dragged lower on concerns about the yen's recent strength and weak U.S. employment trends.
Paper and cement companies in Taiwan also gained on hopes the efforts would benefit companies on the island whose factories in mainland China are more advanced and meet new standards. Yuen Foong Yu Paper Manufacturing rose 4%, Taiwan Cement advanced 1.5% and Lucky Cement gained 1.9%.
In Tokyo, exporters paced the decline, with Honda Motor Co. losing 1.7% and Toyota Motor Corp. dropping 1.4%.
Pioneer dropped 6.3% as first-quarter results disappointed. Though the company posted a net profit of 598 million yen ($7 million U.S.), compared with a net loss of ¥4.1 billion a year earlier, the result came to only 5.4% of the company's full-year net profit estimate of ¥11 billion.
Sentiment was also hurt after Goldman Sachs cut Japan's economic growth forecasts for 2010 and 2011, citing a likely fall in spending on consumer durables and emerging signs of slowing exports growth.
Bridgestone Corp. rose 1% on firm first-half earnings.
Material stocks and banks supported the Australian market, with Rio Tinto rising 1.1% to extend its winning run after the mining giant last week reported that its first-half profit more than tripled from the year-earlier period. Among rivals, BHP Billiton gained 1% and Fortescue Metals Group climbed 2.9%.
AXA Asia Pacific surged 5.4% with strong trading volumes after National Australia Bank revived its 13.3 billion Australian dollar ($12.22 billion U.S.) bid for the company. NAB shares inched up 0.1%.
South Korean stocks advanced in cautious trade ahead of policy meetings at the U.S. Fed and the Bank of Korea this week.
STX Offshore & Shipbuilding rose 0.4% after clinching a 294.11-billion-won ($253.2 million U.S.) drill-ship order in the U.S.
In foreign-exchange markets, the Japanese currency remained in focus, with investors watching to see if the U.S. dollar's psychological support at ¥85 will hold. Jun Kato, senior dealer at Shinkin Asset Management, said a drop below ¥85 would target the currency's Nov. 27 low of ¥84.82.
CHINA
Stock gains for Chinese corporations came after the government said Sunday it had ordered 2,087 companies in 18 sectors to shut down obsolete plants in a decision aimed at streamlining industries that were polluting, energy-intensive and had excess capacity.
Shanghai’s CSI 300 Index picked up 20.58 points, or 0.7%, to 2,918.24
Anhui Conch Cement advanced 1.8% and Xinyu Iron & Steel Co. gained 1.4% in Shanghai, while Xinjiang Tianshan Cement added 0.4% and Yunnan Copper climbed 2.9% in Shenzhen.
Elsewhere;
Singapore markets had the day off
Korea’s Kospi index slid 0.03 points to 1,783.83
Taiwan’s Taiex Index regained 26.45 points, or 0.3%, to 7,963.30
New Zealand’s NZX index docked 0.04 points to 3,044.63
Australia’s S&P/ASX 200 lost 0.4 points to 4,566.10
