Japanese stocks rose Thursday after the yen weakened and the Federal Reserve’s Chairman said the pace of bond purchases would hinge on U.S. economic health, while Chinese shares fell on concern Beijing won’t use stimulus to boost a slowing economy.
Japan’s Nikkei 225 gained 193.46 points, or 1.3%, to 14,808.50
Hong Kong’s Hang Seng Index dipped 26.65 points, or 0.1%, to 21,345.22
Japan extended gains in afternoon trading as the U.S. dollar climbed back above the key ¥100-level during the session, spurring shares of several firms with a large international presence.
The advance, which marked a fifth straight day of gains for the Nikkei, came amid expectations that the ruling Liberal Democratic Party will secure a majority in the Upper House elections over the coming weekend.
Several major financial stocks posted gains following positive cues from the U.S. Sumitomo Mitsui Financial Group Inc. rose 2.2% in Tokyo, National Australia Bank Ltd. added 1% in Sydney, and HSBC Holdings PLC climbed 0.2% in Hong Kong.
Shares of Softbank Corp. jumped 4% on news the Japanese telecommunications firm will form a 50-50 joint venture with Bloom Energy to deploy the U.S.-based firm’s energy servers.
Toshiba Corp. gained 2.3% after the Nikkei newspaper reported the company planned to invest in capacity expansion for smartphone chips for the first time in about two years.
China Resources Power Holdings Co. fell 1.8% in Hong Kong, extending Wednesday’s 10% tumble, although the company said allegations that it had deliberately overpaid for coal assets in 2010 were “malicious slander.”
In Australia, surfwear maker Billabong International Ltd. climbed a further 9% after Wednesday’s 34% surge, following news it has secured a private-equity loan and that it was replacing the company’s chief executive.
A rise in U.S. crude-oil prices Wednesday helped lift energy producers. Japan Petroleum Exploration Co. gained 0.7% in Tokyo, and Santos Ltd. rose 2.3% in Sydney.
CHINA
The Shanghai Shenzhen CSI 300 scaled back 37.51 points, or 1.6%, to 2,245.33
The index is among the worst performing major Asian benchmarks this year — down nearly 11% from its closing level of 2012 — as various economic indicators weakened while Beijing refrained from easing its policies.
Thursday’s drop came after Chinese Finance Minister Lou Jiwei said Wednesday the government in Beijing was unlikely to use massive fiscal stimulus this year, according to a statement posted on the ministry’s website.
Chinese property stocks declined, shrugging off official data showing new home prices continued to rise in a majority of Chinese cities in June.
Shares of China Overseas Land & Investment Ltd. fell 1.4% and China Resources Land Ltd. shed 3.3% in Hong Kong. Gemdale Corp. gave up 3% in Shanghai, and the yuan-denominated A shares of China Vanke Co. slid 2.6% in Shenzhen.
In other markets;
Taiwan’s Taiex Index lost 64.07 points, or 0.8%, to 8,194.88
Singapore’s Straits Times Index inched ahead 9.87 points, or 0.3%, to 3,218.20
Korea’s Kospi Index dropped 12.01 points, or 0.6%, to 1,875.48
In New Zealand, the Exchange 50 Gross Index fell 15.58 points, or 0.3%, to 4,563.39
In Australia, the S&P/ASX 200 hiked 11.74 points, or 0.2%, to 4,993.42
