By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Japanese stocks rose Thursday after
Federal Reserve Chairman Ben Bernanke said the pace of its bond
purchases would depend on U.S. economic health, while Chinese
shares fell on concern Beijing won't use stimulus to boost a
slowing economy.
The Shanghai Composite Index surrendered 0.9%, after also losing
1% on Wednesday. The index is among the worst performing major Asia
benchmarks this year -- down more than 10% from its closing level
of 2012 -- as various economic indicators weakened while Beijing
refrained from easing its policies.
Thursday's drop came after Chinese Finance Minister Lou Jiwei
said Wednesday the government was unlikely to use massive fiscal
stimulus this year, according to a statement posted on the
ministry's website.
Elsewhere, Hong Kong's Hang Seng Index was flat in choppy trade,
while South Korea's Kospi retreated 0.6%.
On the upside, Japan's Nikkei Stock Average added 0.5%, and
Australia's S&P/ASX 200 edged up 0.2%.
Their performance came as U.S. stocks ticked higher Wednesday
after the Fed chairman said the central bank's monthly bond
purchases weren't on a "pre-set course" and could be curbed or
extended, depending on economic conditions.
"Fed Chairman Bernanke didn't deliver anything new in his
testimony yesterday but still managed to provide further
reassurance to markets. ... The positive tone will likely creep
into Asian trading today in the absence of other key market
drivers," said Crédit Agricole head of Asia global markets research
Mitul Kotecha.
In addition to Bernanke's testimony to Congress,
better-than-expected results from Bank of America Corp. (BAC) also
helped banking shares advance on Wall Street.
Several major financial stocks posted gains following positive
cues from the U.S. Sumitomo Mitsui Financial Group Inc. (SMFJY)
rose 1.9% in Tokyo, National Australia Bank Ltd. (NABZY) added 0.9%
in Sydney, and HSBC Holdings PLC (HBC) climbed 0.4% in Hong
Kong.
Meanwhile, shares of Softbank Corp. (9984.TO) jumped 4.5% on
news the Japanese telecommunications firm will form a 50-50 joint
venture with Bloom Energy to deploy the U.S.-based firm's energy
servers.
Toshiba Corp. (TOSYY) gained 2.3% after the Nikkei newspaper
reported the company planned to invest in capacity expansion for
smartphone chips for the first time in about two years.
Chinese property stocks declined, shrugging off official data
showing new home prices continued to rise in a majority of Chinese
cities in June.
Shares of China Overseas Land & Investment Ltd. (CAOVY) fell
1.2%, and China Resources Land Ltd. (CRBJF) shed 0.5% in Hong Kong,
while Gemdale Corp. gave up 1.3% in Shanghai, and China Vanke Co.
slid 1.1% in Shenzhen.
China Resources Power Holdings Co. gained 2% in Hong Kong after
the company said allegations that the company had deliberately
overpaid for coal assets in 2010 were "malicious slander." The
gains follow a 10% slump Wednesday in the wake of the
accusation.
In Australia, surfwear maker Billibong International Ltd.
(BLLAY) climbed a further 3.6% on top of Wednesday's 34% surge,
following news it has secured a private-equity loan and that it was
replacing the company's chief executive.
A rise in U.S. crude-oil prices Wednesday helped lift energy
producers. Japan Petroleum Exploration Co. gained 1.1% in Tokyo,
and Santos Ltd. rose 2% in Sydney, while Kunlun Energy Co. (CNPXF)
advanced 1.2% in Hong Kong.
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