By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Japanese stocks shot higher to lead
gains for Asian markets Tuesday, as investors returned from a
four-day weekend to catch up with central-bank decisions, strong
U.S. jobs data and a weaker yen.
The Nikkei Stock Average soared 2.8% to 14,077.48, topping the
14,000-point level for the first time since June 2008, while the
broader Topix index gained 2.6%.
The jump came as the market reopened for the first time since
Thursday, reacting to developments in the interim, including the
European Central Bank's quarter-point rate cut, the Federal
Reserve's commitment to cut or increase its monthly bond purchases
as required, and better-than-expected data on U.S. nonfarm
payrolls.
The dollar (USDJPY) also moved back above the 99-yen level
during the Tokyo break, rising from under Yen98 during last
Thursday's Japanese stock session, providing a lift to
exporters.
"A further widening in the U.S. yield advantage over Japan will
be required to push [the dollar's rate against the yen] higher,
especially as recent flow data have shown both Japanese investor
repatriation and net foreign buying of Japanese portfolio assets,"
Crédit Agricole head of global markets research Mitul Kotecha
said.
"Despite these inflows, we expect a break [above] Yen100 to
occur very soon, with appetite for foreign assets from Japanese
[life insurers] and government pension funds, providing much of the
ammunition for a sustained move higher," Kotecha said.
Shares of Toyota Motor Corp. (TM) jumped 4.4% a day after the
Nikkei newspaper reported the auto giant was expected to report a
more-than-tripling of its group operating profit for the year ended
March 31, exceeding the forecast it issued in February.
Also leading the charge among exporters, shares of Nissan Motor
Co. (NSANY) spiked 5%, Sony Corp. (SNE) rallied 5.6%, and Nintendo
Co. (NTDOY) added 3%.
On the downside for Asia, South Korea's Kospi slipped 0.3%,
while Australia's S&P/ASX 200 eased 0.1% in Sydney on caution
ahead of the Reserve Bank of Australia's monetary-policy
decision.
Just two of 18 economists surveyed by The Wall Street Journal
expect a cut in the interest rate from 3%.
Banking stocks weakened in Sydney, with shares of Commonwealth
Bank of Australia [(CBAUY) off 0.6% and Westpac Banking Corp. (WBK)
1.2% lower, while Australia & New Zealand Banking Group (ANZBY)
declined 0.6%.
The drop came after Australia's banking regulator said it won't
delay the implementation of new minimum liquidity standards,
breaking from international regulators who had decided on a 2019
deadline for global banks to put the rules in effect.
Meanwhile, shares of Billabong International Ltd. (BBG.AU) were
halted at the surfwear retailer's request, saying the move was
related to possible transactions involving the company. The halt
will be in effect until Thursday or whenever the company makes an
announcement. Billabong has been in talks with potential
buyers.
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