Asian shares higher, resource stocks up in Sydney
Sunday, 13 June 2010
SINGAPORE, June 12 (Dow Jones): Asian stock markets were higher Friday with resource stocks in Australia buoyant on speculation the government might water down a controversial tax on miners.
Shares in China underperformed the region as a slew of leading data painted a mixed picture of Asia's second biggest economy.
Official numbers showed China's inflation was speeding up while industrial output was moderating, posing a challenge for the People's Bank of China in terms of future policy.
"The stock market will continue to consolidate, because of the uncertainty surrounding China's macroeconomic policies," said Capital Securities analyst Jacky Zhang in Shanghai. "The uncertainty will hurt demand for banking, property and steel stocks which are more vulnerable to policy changes than other sectors," he added.
The Shanghai Composite index was up 0.4 per cent, lagging gains in other regional indexes. Japan's Nikkei Stock Average was up 1.5 per cent, Australia's S&P/ASX 200 was up 1.3, South Korea's Kospi Composite was up 0.9 per cent. Hong Kong's Hang Seng index was up 1.3 per cent and shares in Taiwan were 1.5 per cent higher. DJIA futures were down 9 points in screen trade.
Australia's Herald Sun Friday reported that the Rudd government would announce major changes to the planned tax later in the day or Saturday.
Policy uncertainty crimped gains in China after data showed China's consumer price index rose 3.1 per cent on-year in May, exceeding Beijing's 3.0 per cent annual target and accelerating from April's 2.8 per cent rise while beating the 3.0 rise tipped in a Dow Jones poll of 12 economists.
Although the CPI data fuelled fears Beijing might take more steps to put the brakes on rising prices, there was uncertainty as other data showed recent measures were already doing their job to slow the Chinese juggernaut.
Industrial production expanded 16.5 per cent on-year in May, slowing from April's 17.8 per cent increase and below the median 17.0 per cent rise forecast in a poll of 11 economists.
Traders also said some investors were locking-in profits ahead of the extended holiday weekend as China's markets will be closed from Monday to Wednesday for the Dragon Boat Festival.
Chinese retailers were higher as the data fueled expectations of rising prices. Qingdao Haier was up 2.7 per cent and Zhejiang China Commodities City Group gained 4.4 per cent.
Shares in Tokyo were up on broad-based gains, with the weaker yen boosting demand for exporters' stock. Sony was up 2.5 per cent, Sharp Corp was up 4.6 per cent and Canon added 2.5 per cent.
Bank stocks rose on news Shizuka Kamei, chief of the People's New Party, is quitting the Cabinet in protest at the Democratic Party of Japan's decision to postpone postal overhaul bills until the next Diet session.
Shares in Hong Kong were higher although investors remained cautious and ever-ready to take some cash out as the benchmark Hang Seng index neared the key 20,000 level.
South Korea's market was up on gains led by blue-chip stocks with foreign buying underpinning demand. Samsung Electronics was up 2.3 per cent, Posco was 2.3 per cent higher and Hyundai Motor gained 0.7 per cent.
Among the smaller Asia markets, New Zealand's NZX-50 was up 1.1 per cent, Singapore's Straits Times Index added 0.4 per cent, Malaysia's KLCI rose 0.5 per cent and Indonesian shares added 1.1 per cent. Philippine shares were up 1.3 per cent, Thailand's SET index added 0.6 per cent and India's Sensex rose 0.9 per cent.
Japanese government bonds were lower, tracking the fall in US Treasurys Thursday and the Nikkei's rise. Lead September JGB futures were off 0.25 at 140.36 points while the 10-year cash JGB yield was up 4.0 basis points at 1.240 per cent.
Shares in China underperformed the region as a slew of leading data painted a mixed picture of Asia's second biggest economy.
Official numbers showed China's inflation was speeding up while industrial output was moderating, posing a challenge for the People's Bank of China in terms of future policy.
"The stock market will continue to consolidate, because of the uncertainty surrounding China's macroeconomic policies," said Capital Securities analyst Jacky Zhang in Shanghai. "The uncertainty will hurt demand for banking, property and steel stocks which are more vulnerable to policy changes than other sectors," he added.
The Shanghai Composite index was up 0.4 per cent, lagging gains in other regional indexes. Japan's Nikkei Stock Average was up 1.5 per cent, Australia's S&P/ASX 200 was up 1.3, South Korea's Kospi Composite was up 0.9 per cent. Hong Kong's Hang Seng index was up 1.3 per cent and shares in Taiwan were 1.5 per cent higher. DJIA futures were down 9 points in screen trade.
Australia's Herald Sun Friday reported that the Rudd government would announce major changes to the planned tax later in the day or Saturday.
Policy uncertainty crimped gains in China after data showed China's consumer price index rose 3.1 per cent on-year in May, exceeding Beijing's 3.0 per cent annual target and accelerating from April's 2.8 per cent rise while beating the 3.0 rise tipped in a Dow Jones poll of 12 economists.
Although the CPI data fuelled fears Beijing might take more steps to put the brakes on rising prices, there was uncertainty as other data showed recent measures were already doing their job to slow the Chinese juggernaut.
Industrial production expanded 16.5 per cent on-year in May, slowing from April's 17.8 per cent increase and below the median 17.0 per cent rise forecast in a poll of 11 economists.
Traders also said some investors were locking-in profits ahead of the extended holiday weekend as China's markets will be closed from Monday to Wednesday for the Dragon Boat Festival.
Chinese retailers were higher as the data fueled expectations of rising prices. Qingdao Haier was up 2.7 per cent and Zhejiang China Commodities City Group gained 4.4 per cent.
Shares in Tokyo were up on broad-based gains, with the weaker yen boosting demand for exporters' stock. Sony was up 2.5 per cent, Sharp Corp was up 4.6 per cent and Canon added 2.5 per cent.
Bank stocks rose on news Shizuka Kamei, chief of the People's New Party, is quitting the Cabinet in protest at the Democratic Party of Japan's decision to postpone postal overhaul bills until the next Diet session.
Shares in Hong Kong were higher although investors remained cautious and ever-ready to take some cash out as the benchmark Hang Seng index neared the key 20,000 level.
South Korea's market was up on gains led by blue-chip stocks with foreign buying underpinning demand. Samsung Electronics was up 2.3 per cent, Posco was 2.3 per cent higher and Hyundai Motor gained 0.7 per cent.
Among the smaller Asia markets, New Zealand's NZX-50 was up 1.1 per cent, Singapore's Straits Times Index added 0.4 per cent, Malaysia's KLCI rose 0.5 per cent and Indonesian shares added 1.1 per cent. Philippine shares were up 1.3 per cent, Thailand's SET index added 0.6 per cent and India's Sensex rose 0.9 per cent.
Japanese government bonds were lower, tracking the fall in US Treasurys Thursday and the Nikkei's rise. Lead September JGB futures were off 0.25 at 140.36 points while the 10-year cash JGB yield was up 4.0 basis points at 1.240 per cent.