Japanese stocks made a strong recovery on Monday following recent losses, while other markets were modestly higher as investors digested a set of poor economic data from China.
In Japan, the Nikkei 225 vaulted 636.17 points, or 4.9%, to 13,514.20, due to a weaker yen, helping the index move away from bear-market territory. The index is now down 16.7% from the peak that it reached on May 23.
In Hong Kong, the Hang Seng Index recovered 39.83 points, or 0.2%, to 21,615.09
Japan posted a larger-than-expected current-account surplus of ¥750 billion ($735 billion U.S.) for April, compared with expectations for a ¥310 billion surplus. Separately, Japan revised its growth data for the January-to-March period to 4.1% in annualized terms, higher than the 3.5% growth initially reported.
Large index constituent Softbank Corp. climbed 6.9% higher, while shares in exporters were boosted by the weaker yen: Toyota Motor Corp. added 7.1%, and Bridgestone Corp. rose 5.9%.
Signs of economic strength in the U.S. economy initially gave the dollar a boost against the yen, which was last at ¥98.15 compared to ¥97.54 late Friday in New York. The greenback fell 2.9% against the yen last week, its worst week against the yen since February 2010.
Elsewhere in the region, the positive employment news from the U.S. was offset by a string of uninspiring Chinese economic data released over the weekend.
A 1.0% increase in exports for May, combined with a 0.3% decline in imports, painted a poor picture for trade. Industrial production grew slightly slower in May compared to April, while consumer prices rose by 2.1%, undershooting expectations.
Australia’s stock market was closed for a public holiday on Monday, but the poor economic data from China weighed the country’s currency. The Australian dollar fell to 94.26 U.S. cents from 94.98 U.S. cents late Friday in New York.
Mainland Chinese markets were slated to close Monday through Wednesday for the Dragon Boat Festival.
In other markets;
Singapore’s Straits Times Index improved 15.79 points, or 0.5%, to 3,200.51
Korea’s Kospi Index tacked on 8.85 points, or 0.5%, to 1,932.70
Taiwan’s Taiex Index added 65.35 points, or 0.8%, to 8,160.55
In New Zealand, the Exchange 50 Gross Index grew 33.53 points, or 0.8%, to 4,473.38
