Most Asian markets advanced Tuesday to cheer benign inflation data from China and a solid start to the U.S. earnings season, while Japanese stocks let early gains slip by to snap a four-day winning streak as investors took profits in banks.
In Japan, the Nikkei 225 index shaved 0.24 points, to close at 13,192.35
Hong Kong’s Hang Seng Index regained 152.29 points, or 0.7%, to 21,870.34
Several Japanese banks retreated on profit-taking after hefty recent advances, to erase broad market gains.
Shares of Mitsubishi UFJ Financial Group Inc. dropped 2.5% and Mizuho Financial Group Inc. skidded 1.9% during the session. The stocks are still up 11.8% and 6.5% so far this month.
A number of exporters added to their sharp recent gains in Tokyo trading as the U.S. dollar rose as high as ¥99.66 during the session, reflecting expectations for aggressive monetary easing by the Bank of Japan. But the dollar slipped to ¥98.98 in early European trade.
Camera maker Canon Inc. ended up 2.1%, industrial automation major Fanuc Corp. rallied 2.8%, and Nissan Motor Co. climbed 0.8%. Fanuc also received some support from Crédit Suisse’s upgrade of its stock rating to outperform.
Several resource-sector stocks got a boost from Alcoa Inc., which reported a near 60% jump in quarterly profits.
Among Alcoa’s peers, Alumina Ltd. jumped 5% in Sydney, while Aluminum Corp. of China Ltd. climbed 2.5% in Hong Kong and ended 0.7% up in Shanghai.
Among regional airlines (see more below), Hang Seng Index-constituent Cathay Pacific Airways Ltd. advanced 1.7% in Hong Kong trade.
Elsewhere, China Airlines Ltd. rose 0.5% in Taipei, while Qantas Airways Ltd. climbed 1.4% in Sydney.
The gains came as analysts at Credit Suisse upgraded the region’s airlines to overweight, following the recent selloff.
CHINA
The Shanghai CSI 300 recovered 17.13 points, or 0.7%, to 2,489.43, after official data showing March consumer prices in China rose at a less-than-expected rate of 2.1% from the year-ago month.
The increase was markedly lower than the 3.2% inflation recorded in February, and also milder than the 2.4% price increase anticipated by economists surveyed by Dow Jones Newswires. Wholesale prices dropped 1.9% in March, roughly matching expectations.
Regional airlines also advanced, looking past fears related to the spread of a new strain of avian flu in China which had slammed their shares in recent session.
Air China Ltd. rose 0.8% and China Southern Airlines Co. added 0.3% in Shanghai
In other markets;
In Korea, the Kospi Index gained 2.05 points, or 0.1%, to 1,920.74
In Taiwan, the Taiex Index retreated 24.25 points, or 0.3%, to 7,728.54
The Singapore Straits Times Index reacquired 11.96 points, or 0.4%, to 3,296.57
In New Zealand, the NZX 50 docked two points, or 0.1%, to 4,395.21
Australia’s ASX 200 accumulated 71.35 points, or 1.5%, to 4,976.84
