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Asia stocks higher after China trade data; Nikkei ends up 0.7%

Published 04/10/2013, 02:41 AM
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Investing.com - Asian stock markets were mostly higher during late Asian trade on Wednesday, as investors digested a report showing that China posted a surprise trade deficit in March.

During late Asian trade, Hong Kong's Hang Seng Index was up 0.2%, Australia’s ASX/200 Index ended down 0.15%, while Japan’s Nikkei 225 Index closed up 0.7%.

Official trade data released earlier showed that Chinese imports rose 14.1% from a year earlier in March, blowing past expectations for a 6% increase and following a decline of 15.2% in February.

Exports grew 10% from a year earlier in March, below expectations for an 11.7% gain and down from a 21.8% increase in the previous month, leaving the world’s second-largest economy with a trade deficit of USD884 million compared with a February surplus of USD15.3 billion.   

In Hong Kong, the Hang Seng inched higher as raw material producers performed strongly on the back of rising commodity prices.

Shares in China’s largest aluminum producer Aluminum Corporation of China, or CHALCO, climbed 3.8%, copper producer Jiangxi Copper Company rose 1.8%, while gold miner Zijin Mining Group tacked on 2.8%.

Insurance companies continued to recover from recent losses stemming from worries over the spread of bird flu in China, with Ping An Insurance Group adding 1%, while China Life Insurance Group surged 3.8%.

Elsewhere, in Australia, the benchmark ASX/200 Index ended little changed as losses in financials cancelled out gains in miners.

The big four banks all fell, with Australia's top lender, the Commonwealth Bank of Australia slumping 0.8%, while National Australia Bank and Westpac Banking Group retreated 0.7% and 1.2% respectively.

On the upside, mining heavyweights Rio Tinto and BHP Billiton added 2.8% and 1.9% respectively, while iron ore producer Fortescue Metals Group rallied 3.7%.

Shares in Billabong were also in focus. The surf-wear retailer saw shares plunge 27% to hit a record low after saying it was in talks with a private-equity consortium over a takeover bid that was 45% below a previous offer.

Meanwhile, in Tokyo, the Nikkei ended at a fresh five-year high as the U.S. dollar edged closer to the key 100-yen level, boosting the earnings outlook for many big name Japanese exporters.

Automakers Toyota and Honda climbed 1.1% and 1% respectively, while Sony and Canon added 0.9% and 2% apiece.

A weaker yen increases the value of overseas income at Japanese companies when repatriated, boosting the outlook for export earnings.

Japanese megabanks were also higher, with shares in the nation’s largest lender Mitsubishi UFJ Financial Group surging 5%, while Mizuho Financial Group jumped 2.9% and Sumitomo Mitsui Financial Group rallied 6.7%.

Looking ahead, European stock market futures pointed to a steady open, as investors looked ahead to the release of the minutes from the Federal Reserve’s most recent meeting later in the day.

The EURO STOXX 50 futures pointed to a flat open, France’s CAC 40 futures added 0.1%, London’s FTSE 100 futures were little changed, while Germany's DAX futures pointed to a flat open.  

Investors were waiting to see if the U.S. central bank discussed the possibility of an earlier-than-expected end to its quantitative easing program at its March meeting.

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