Mainland Chinese and Hong Kong stocks jumped to lead most Asian markets higher Monday amid hopes Beijing would step in to support the economy.
Japan’s Nikkei 225 fell 95.76 points, or 0.7%, to 13,519.43. The decline followed data showing slower-than-expected economic growth in the April-June quarter.
Hong Kong’s Hang Seng Index zoomed 463.72 points, or 2.1%, to 22,271.28, its highest finish since June 4.
Meanwhile, Hong Kong daily newspaper South China Morning Post reported Monday that Beijing was "quietly offering financial stimulus" to key cities and provinces to support the local economies. The report, citing unnamed government sources, said that while policy makers had repeatedly denied the possibility of national stimulus, they didn’t rule out "unofficial economic stimulus" to help key local economies.
In Hong Kong, Anhui Conch advanced 4%, Aluminum Corp. of China Ltd. jumped 6%, and China Resources Land Ltd. gained 2.3%.
The Japanese government said Monday the economy grew at an annualized rate of 2.6% in the previous quarter. The expansion marked a third straight quarter of growth but was a full percentage point short of the 3.6% improvement estimated in a Dow Jones Newswires survey.
Ogata cited uncertainty about the plan’s implementation following Japan’s Prime Minister Shinzo Abe instructions earlier for ministers to evaluate the impact from the planned consumption tax hikes before making a final decision on the increase.
Japan’s parliament has already approved an increase in the consumption tax to 8% by April 2014 and to 10% by October 2015, from 5% at present. The tax increase, aimed at boosting the revenue of the highly indebted Japanese government, is expected to weigh on the nation’s economic recovery.
Financial shares declined in Tokyo, with Daiwa Securities Group Inc. losing 2.3%, Nomura Holdings Inc. sliding 3.1%, and Mizuho Financial Group Inc. shedding 1.4%.
Bridgestone Corp. gained 2.8% after the tire maker raised its profit forecast for the fiscal year ending next March, while Citizen Holdings Co. surged 16.6%, boosted by strong results and an increase in its own profit outlook.
Over in Sydney, Australian miners posted solid gains following an increase in metals prices Friday, as well as the recent batch of Chinese economic data. BHP Billiton Ltd. gained 2.4% and Rio Tinto Ltd. added 2.6%.
Newcrest Mining Ltd. jumped 7.9% despite posting a record annual loss and scrapping its dividend payment, as its profit after stripping off one-time impairment charges came ahead of expectations.
CHINA
The Shanghai Shenzhen CSI 300 rocketed 66.78 points, or 2.9%, to 2,352.79, its highest percentage jump in more than a month.
Data released last week showed a better-than-expected improvement in China’s trade indicators and in monthly industrial output.
The bounce followed data released late Friday, showing Chinese banks made 699.9 billion yuan ($114.3 billion U.S.) worth of local-currency loans in July, beating expectations.
Construction-related stocks soared on Chinese markets. Shares of Anhui Conch Cement Co. jumped 4.6%, and property developer Gemdale Corp. rose 4.4% in Shanghai.
In other markets;
Taiwan’s Taiex Index recovered 47.24 points, or 0.6%, to 7,903.38
The Singapore Straits Times returned from a long weekend to gain 2.33 points to 3,232.24
Korea’s Kospi Index moved higher 4.12 points, or 0.2%, to 1,884.83
In New Zealand, the Exchange 50 Gross Index skidded 11.34 points, or 0.3%, to 4,522.30
In Australia, the S&P/ASX 200 recovered 53.44 points, or 1.1%, to 5,108.65
