By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Japanese stocks on Monday jumped to
their highest level in more than five years, boosted by an improved
profit outlook and further yen weakness after the Group of Seven
major economies refrained from criticizing Tokyo's easing
policies.
Australian and South Korean stocks, meanwhile, wavered in choppy
trade amid caution ahead of the release of China's monthly
industrial-production and retail-sales data.
"The release of statistics this afternoon covering China's
industrial production and retail sales for April has the potential
to move world equity and commodity markets. Indications of
moderating growth in China have been a key factor for markets in
recent months," said CMC Markets chief market analyst Ric
Spooner.
Japan's Nikkei Stock Average climbed 1.5% to 14,821.08 -- rising
to levels it hadn't seen since January 2008 -- after having spiked
6.7% last week. The broader Topix index gained 1.7%.
South Korea's Kospi slipped 0.1%, while Australia's S&P/ASX
200 added 0.2%, after each index changed direction a few times.
The gains in Tokyo came after leaders at a G-7 meeting offered
no criticism of Japan's monetary policies that have helped weaken
the yen sharply in recent months. On Monday, the U.S. dollar
(USDJPY) was trading close to the Yen102 level, further boosting
shares of Japanese exporters.
Hopes for strong earnings also provided a tailwind, after the
Nikkei newspaper reported over the weekend that listed
non-financial companies were on track to post a 20% growth in
pretax profits for the current financial year ending March 31,
2014.
Shares of Panasonic Corp. (PCRFY) climbed 9.8%, and Nissan Motor
Co. (NSANY) rose 5.5% after each issued strong annual profit
forecasts.
Sharp Corp. (SHCAY) surged 15.1% after the Nikkei newspaper
reported it planned to downsize its European operations.
In Sydney, meanwhile, the resource sector weakened amid U.S.
dollar strength, with gold miners also suffering from a
more-than-2% drop in gold futures on Friday.
Gold miners Newcrest Mining Ltd. (NCMGY) and Perseus Mining Ltd.
shed 3.2% and 5.6%, respectively.
Among the larger diversified miners, BHP Billiton Ltd. (BHP) was
off 0.8%, and Rio Tinto Ltd. (RIO) gave up 1.4%.
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