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Asia stocks mostly higher; Nikkei ends up 0.5%

Published 05/20/2014, 02:47 AM
Asia stocks mostly higher, tracking U.S. gains
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Investing.com - Asian stock markets were mostly higher on Tuesday, as an upbeat overnight session on Wall Street lifted sentiment.

During late Asian trade, Hong Kong's Hang Seng added 0.35%, China’s Shanghai Composite inched up 0.14%, Australia’s S&P/ASX 200 closed 0.21% higher, while Japan’s Nikkei 225 ended up 0.49%.

Asia was given a positive lead from the U.S., where markets ended higher as Internet shares extended a rebound.

In Tokyo, the Nikkei ended higher for the first time in five sessions as traders continued to monitor movements in the currency market. The yen weakened against the dollar, trading at ¥101.59 from ¥101.09 in the previous session (USD/JPY).

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

Yahoo Japan (TOKYO:4689) saw shares jump 11.7% after the company scrapped plans to acquire mobile telecoms provider eAccess from Softbank (TOKYO:9984) in a deal valued at approximately $4.4 billion.

Traders were looking ahead to the conclusion of the Bank of Japan’s two-day policy meeting on Wednesday. The central bank is widely expected to keep policy unchanged.

Meanwhile, in Australia, the ASX/200 Index bounced off a one-month low hit earlier in the session, but sentiment remained shaky after ratings agency Standard & Poor’s warned that Australia’s coveted AAA-rating was at risk unless substantial cuts were made to the budget.

The Australian dollar (AUD/USD) weakened to 92.70 U.S. cents from 93.65 in the prior session.

Treasury Wine Estates (ASX:TWE) surged 18% after the winemaker rejected a $2.9 billion takeover bid from U.S. private-equity firm Kohlberg Kravis Roberts.

Elsewhere, shares in mainland China and Hong Kong edged higher, but gains were limited amid ongoing concerns over the outlook for growth in China.

Index heavyweights Lenovo (HK:0992) and Tencent (HK:0700) rallied 4% and 2% respectively.

In Thailand, the SET 100 benchmark index dropped 1% after the Thai army chief said the military would impose martial law to address a worsening security situation. The country is bitterly divided between supporters of the populist government and their conservative rivals.

Looking ahead, European stock market futures pointed to a mixed open. The Euro Stoxx 50 futures pointed to a loss of 0.15%, France’s CAC 40 declined 0.2%, London’s FTSE 100 indicated a gain of 0.1%, while Germany's DAX pointed to a flat open.

Across the Atlantic, U.S. equity markets pointed to a modestly lower open. The Dow pointed to a drop of 0.1%, the S&P 500 inched down 0.1%, while the Nasdaq 100 indicated a decline of 0.1%.

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