By Daniel Inman
Chinese stocks jumped Monday as the market welcomed a blueprint
for capital market reform, while shares in India hit a new high on
hopes the election will bring in a more business-friendly
government.
The Shanghai Composite rose 1.9% after Beijing on Friday
outlined its vision for a less regulated market, including a more
investor-driven system for initial public offerings and easier
access for foreign capital.
The impact spilled over to Hong Kong, where the Hang Seng Index
was up 1.6%.
In Mumbai, the S&P BSE Sensex hit a record 23,336.19 before
easing to 23,323.70, up 1.4% from the previous close. It has risen
more than 10% since early March. Exit polls predicting the outcome
of the national election are likely to start coming in later
Monday, and investors hope the Bharatiya Janata Party will win
enough seats to form the next government in place of the ruling
Congress party-led coalition.
Much of the rest of Asia started the week with a downward bias
as the positive lead from Wall Street -- where the Dow Jones
Industrial Average closed at a record high Friday -- was offset by
renewed concerns over Ukraine. Pro-Russian separatists in the east
of the country declared victory in a secession referendum Sunday,
increasing tensions between the West and Moscow.
Japan's Nikkei pared its earlier gains and was last down 0.2%,
as the dollar (USDJPY) came off a session high of Yen102.05 against
the yen. The dollar was last trading at Yen101.95, compared with
Yen101.82 late Friday in New York.
"Corporate earnings reports and economic data are on watch this
week but the stagnant currency market will keep any Nikkei gains
capped," said Investrust Chief Executive Hiroyuki Fukunaga.
In Tokyo, Olympus was up 4% after the company said its operating
profit doubled in the recently ended fiscal year. Nippon Steel
& Sumitomo Metal also added 1.1% after a positive earnings
report.
Australia's S&P/ASX 200 was down 0.3%, and South Korea's
Kospi was 0.3% higher, while Singapore's Straits Times Index lost
0.6%.
Mining stocks in Australia were weak after spot iron-ore prices
fell to a 20-month low, with BHP Billiton , Rio Tinto and Fortescue
Metals Group all down.
A number of markets were looking ahead to events on Tuesday. In
Australia, Prime Minister Tony Abbott's government will release its
first federal budget, while China will publish industrial
production data and retail sales figures for April.
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