By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Stocks in Australia and Hong Kong
rebounded Thursday from the previous day's sharp losses, aided by
strong monthly trade data from China and some upbeat earnings
reports. Japanese shares tumbled in volatile trade amidst a
strengthening yen.
Australia's extended early gains to finish 1.1% higher and Hong
Kong's Hang Seng Index climbed 0.3% after data from China showed
both its exports and imports climbed more than expected in July,
recovering from the weakness seen in June.
China's Shanghai Composite slipped 0.1% after a choppy trading
session.
"Together with the rebounding official Purchasing Managers'
Index ... July trade data are supportive of a better economic
outlook for China and will surely help boost market confidence,"
said Ting Lu, a China economist at Bank of America Merrill
Lynch.
Japan's Nikkei Stock Average ended 1.6% lower, adding to its 4%
plunge Wednesday.
The losses came as the U.S. dollar (USDJPY) fell further to
slide toward Yen96. Earlier in the day, the Bank of Japan left its
policies unchanged, as expected, while saying the domestic economy
was "starting to recover moderately."
The day's performance in Asia followed a third straight day of
losses on Wall Street, amid uncertainty over the timing of the
Federal Reserve's widely expected reduction in monthly bond
purchases.
"Markets have moved into a 'sell on the rumor, buy on the fact'
mode in the wake of the end of the U.S. [earnings reporting] season
and rising concerns about U.S. Fed's tapering," said Perpetual head
of investment research Matthew Sherwood.
U.S. equity futures edged higher during Asian stock trade, with
those on the Dow Jones Industrial Average (DJU3) and the Standard
& Poor's 500 (SPU3) adding 0.2% each.
Among stocks losing ground in Tokyo, Hino Motors Ltd. (HINOY)
and Tokyo Electric Power Co. (TKECY) slumped 5% each, Panasonic
Corp. (PCRFY) lost 3.3% and Tokyu Land Corp. (8815.TO) shed
4.6%.
In Sydney, meanwhile, shares of Telstra (TTRAF) rose 2.4% after
the telecommunications major posted a forecast-beating 12% increase
in annual profit.
Shares of mining giant Rio Tinto Ltd. (RIO) tacked on 1.5%
before the release of its own financial results.
Over in Hong Kong, shares of banking heavyweight HSBC Holdings
PLC (HBC) rose 0.2% and China Coal Energy Co. (CCOZY) gained 2.5%,
while footwear major Belle International Holdings Ltd. (BELLY)
climbed 3.3%.
In Shanghai, several financial and property stocks drifted lower
amid lingering economic worries.
Shares of Citic Securities Co. (CIIHF) dropped 1% and Southwest
Securities Co. fell 1.9%, while Gemdale Corp. lost 1.8%.
Elsewhere, South Korea's Kospi added 0.3% after the Bank of
Korea left its policy interest rate unchanged, as widely
expected.
In Seoul, KB Financial Group Inc. (KB) rose 1.4%, and Shinhan
Financial Group Co. (SHG) added 0.4%.
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