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Asia stocks mostly higher in holiday trade; Nikkei rises to 6-year high

Published 12/30/2013, 03:17 AM
Japan's Nikkei closes the year with a 57% gain
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Investing.com - Asian stock markets were mostly higher in thin year-end trading conditions on Monday, with shares in Japan climbing to the strongest level since 2007 as the yen weakened against the U.S. dollar, boosting sentiment.

During late Asian trade, Hong Kong's Hang Seng Index dipped 0.1%, Australia’s ASX/200 Index ended up 0.61%, while Japan’s Nikkei 225 Index closed 0.7% higher.

In Tokyo, the Nikkei closed the year on a high note, rising to a fresh six-year peak for the seventh straight session. The index rallied approximately 57% in 2013, its best annual gain since 1972 and making it by far Asia’s top performer.

The yen rose to hit a fresh five-year high of 105.40 against the U.S. dollar, boosting sentiment. A weaker yen increases the value of overseas income at Japanese companies when repatriated, improving the outlook for export earnings.

Japanese megabanks were higher with shares of the nation’s largest lender Mitsubishi UFJ Financial Group gaining 2.5%, while Mizuho Financial Group jumped 3.2%.

Japanese markets will remain closed from December 31 to January 3 due to the New Year’s holiday.

Meanwhile, in Australia, the ASX/200 Index edged higher in holiday-thinned trade as gains in the mining sector boosted the benchmark index.

BHP Billiton and Rio Tinto saw shares rise 1.25% and 0.95% respectively, while Fortescue Metals Group advanced 1.9%.

Markets in Australia will trade for just half a day on Tuesday due to New Year’s Eve.

Elsewhere, in Hong Kong, the Hang Seng edged lower amid ongoing concerns over tightening liquidity conditions in the financial system and rising interbank lending rates. Investors have remained cautious over the level of bad debt at Chinese banks, particularly when interbank lending rates are high.

China Construction Bank lost 1.1%, Bank of Communications fell 1.5%, while China Citic Bank slumped 1%.

In Europe, markets were little changed after the open. The EURO STOXX 50 rose 0.15%, France’s CAC 40 added 0.1%, London’s FTSE 100 advanced 0.2%, while Germany's DAX dipped 0.1%.

Italy is to hold an auction of five-and-ten-year government debt later in the day.

Across the Atlantic, U.S. equity markets pointed to a flat open. The Dow Jones Industrial Average futures pointed to a gain of 0.04%, S&P 500 futures were little changed, while the Nasdaq 100 futures indicated an increase of 0.07%.

Later Monday, the U.S. is to release private sector data on pending home sales.

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