Japanese stocks rose for a third straight session Wednesday as a weaker yen spurred exporters, while Chinese shares advanced on metal and automobile companies after the latest inflation data eased worries about monetary tightening from Beijing.
But not all stocks in the region ended on a high note, with South Korean stocks declining as shipbuilding, petrochemical and automobile stocks lost ground on continued foreign selling.
The Nikkei Stock Average rose 61.62 points, or 0.6%, to 10,808.30, in Tokyo, stretching its rally in spite of an overnight fall on Wall Street as exporters took heart from the yen’s fall against the dollar on Tuesday. The Nikkei is the best performing major Asian benchmark so far in 2011, with a gain of 5.7% as of Wednesday’s close.
The U.S. dollar rose to a nearly two-month high of ¥83.93, mainly on brightening U.S. economic prospects for 2011. More recently, the greenback was fetching ¥83.74 from ¥83.78 in New York late Tuesday.
Daihatsu Motor Co., a unit of Toyota Motor Corp., rose 2% after the Nikkei newspaper reported the Japanese company will begin production of low-priced compact cars in Indonesia. Many other exporters were also rallying, with Sony Corp. climbing 2.6%, Sharp Corp. adding 2.9% and Nintendo Co. jumping 4.1%.
Softbank Corp. rose for a fifth straight session, rising 1.3% in the wake of an announcement Tuesday that the mobile service provider will cooperate with China Mobile, India’s Bharti Airtel to promote next-generation data-communications technology for mobile phones.
There were also some losers, with Astellas Pharma dropping 1.5% after it withdrew a new drug application in Japan for a circulatory disease medicine, Darexaban.
Hong Kong’s Hang Seng Index added 257.19 points, or 1.1%, to 23,157, encouraged by Tuesday’s milder-than-expected January inflation in China.
In Hong Kong, Angang Steel Co. rose 1.2% and Maanshan Iron & Steel Co. gained 3.6%. Ping An Insurance Group Co. added 1.6% after Deutsche Bank upgraded the stock to buy from hold.
However, Bank of East Asia dropped 3% despite news its 2010 net profit hit record highs, after the lender said its after-tax profit from mainland China slid 5% as it lowered its loan-to-deposit ratios.
In Sydney, BHP Billiton met market expectations.
In the banking sector, Australia & New Zealand Banking Group added 0.9% and Commonwealth Bank of Australia added 1%.
South Korean shares were hit hard on continued selling by foreigners, with Hyundai Heavy Industries Co. losing 3.1%, Honam Petrochemical Corp. losing 4.6% and Hyundai Motor Co. sliding 2.8%.
Korea Electric Power Corp. ranked among the gainers, however, rising 1.9% after it signed a 25-year deal worth $1.43 billion U.S. to supply electricity in the United Arab Emirates.
CHINA
Shanghai's 300 Composite Index notched ahead 30.86 points, or 1%, to 3,248.53.
On mainland Chinese bourses, Fangda Special Steel spiked 5.4% after the firm said it expects a nine-fold rise in net profit for 2010. Baoshan Iron & Steel rose 2.8% after the company on Tuesday raised prices of its steel products for March delivery.
Automobile stocks also advanced, with CNHTC Jinan Truck rising 7.9% after the company said that its January sales rose 74% from a year earlier, and Beiqi Foton Motor Co. adding 4.3%.
In other markets:
Korea's Kospi Index settled 21.41 points, or 1.1%, to 1,989.11
Taiwan's TAiex Index slid 8.97 points, or 0.1%, to 8,712.96
Singapore's Straits Times Index gained 14.06 points or 0.5%, to 3,094.72
New Zealand's NZX Index skidded 5.61 points or 0.2% to 3,384.48
Australia's ASX Index gave back 0.80 points ro 4,930.20
