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Asia stocks regain strength; Nikkei rises 1.2% as yen weakens

Published 05/28/2013, 02:43 AM
USD/JPY
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Investing.com - Asian stock markets were mostly higher on Tuesday, with markets in Japan regaining strength in volatile trade as the yen halted its advance against the U.S. dollar.

During late Asian trade, Hong Kong's Hang Seng Index was up 0.3%, Australia’s ASX/200 Index ended 0.3% higher, while Japan’s Nikkei 225 Index closed up 1.2%.

In Tokyo, the Nikkei recovered from sharp losses at the open to turn higher as the U.S. dollar bounced off a two-week low against the yen, boosting exporters.

USD/JPY traded at 101.97, moving off the previous session’s two-week low of 100.73. A weaker yen increases the value of overseas income at Japanese companies when repatriated, boosting the outlook for export earnings.

Automakers Toyota and Honda jumped 4.9% and 3.9% respectively, while Sony tacked on 3.3%.

Japanese megabanks also contributed to gains, shaking off weakness in recent sessions.

Shares in the nation’s largest lender Mitsubishi UFJ Financial Group added 2%, while Sumitomo Mitsui Financial Group and Mizuno Financial Group advanced 2.1% and 1% respectively.

Meanwhile, in Australia, the benchmark ASX/200 Index inched higher as high dividend-yielding stocks, such as banks, regained strength.

The big four banks all rose, with Australia's top lender, the Commonwealth Bank of Australia gaining 0.8%, while ANZ Banking Group and Westpac Banking Group jumped 1.9% and 1.1% respectively.

Elsewhere, in Hong Kong, the Hang Seng edged higher in quiet trade as market players looking for further clues regarding the strength of the Chinese economy.

The next slice of Chinese economic data to come out will be the official purchasing managers' index, due on Saturday.

The China banking sector were among the biggest gainers on the index, with China Construction Bank shares rising 1%, Industrial and Commercial Bank of China climbing 1.3% and Bank of China advancing 2.4%.

Looking ahead, European stock market futures pointed to a higher open.

The EURO STOXX 50 futures pointed to a gain of 0.4% at the open, France’s CAC 40 futures rose 0.4%, London’s FTSE 100 futures eased up 0.4%, while Germany's DAX futures pointed to a gain of 0.6% at the open.

The U.S. was to release private sector data on house price inflation and a report on consumer confidence later in the day.


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