Tuesday 13/8/2013==Lefties day your support eggs in one basket K Rudd election add -- Notes

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Subject: Tuesday 13/8/2013==Lefties day your support eggs in one basket K Rudd election add

Author:
re Sunday 10/2/2013

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Date Posted: 22:38:48 08/13/13 Tue

3rd UPDATE: Japan Leads Asian Shares Higher
13/08/2013 6:56PM

-- Japanese stocks rally on weaker yen

-- Chinese stocks in Hong Kong continue to gain on economic hopes

-- Apple suppliers higher in Taiwan

(Adds information, quotes, updates/adds market levels)

By Daniel Inman

Asian markets were higher Tuesday with a weaker yen boosting Tokyo shares, while hopes for stability in the Chinese economy buoyed stocks in Hong Kong.

The Nikkei Stock Average jumped 2.6% to 13,867.00, the sharpest percentage gain for the benchmark since Aug. 2, as the yen continued to reverse some of the strength that it exhibited in recent sessions. The U.S. dollar traded at Y97.76 in late Asian trade, compared to Y96.90 late Monday in New York.

The dollar has been trading in a range of Y95 to Y100 since mid-July and "a sharp fluctuation within that band still causes reflexive buying and selling," said Sumitomo Mitsui Banking Corp. strategist Daisuke Uno.

A variety of factors combined to make the yen soften - such as a Nikkei report overnight that Japanese Prime Minister Shinzo Abe has called for a study on lowering effective corporate tax rates.

In addition, Monday's weaker than forecast second quarter growth data continued to weigh on the yen. The slow Japanese economic recovery could encourage further stimulus from the government, which is negative for the local currency.

Looking ahead, there were expectations that forthcoming economic data from the U.S. could push the dollar-yen pair higher - including retail sales, industrial production and housing starts.

"If the results come out strong, we could see the dollar rising towards Y98," said Junichi Ishikawa, market analyst at IG Securities in Tokyo, referring to U.S. retail sales, out later on Tuesday.

The weaker yen boosted major Japanese exporters, with Toyota Motor up 2.3%, Sony up 1.8% and Canon 1.9% higher. A weaker yen boosts Japanese exporters' overseas income and lifts their competitiveness in overseas markets.

Paper companies also outperformed in Tokyo after Daio Paper Corporation and Tokushu Tokai Paper Co. said that they would acquire a 3% stake in each other by the end of the month, a tie-up designed to boost their cooperation in the development of disposable diapers. Daio Paper Corp. added 3.0% and Tokushu Tokai Paper Co. rose 4.5%.

Hong Kong pushed higher on Tuesday, with Chinese companies leading the gains, as the market remained supported by recent economic indicators pointing to stability in the region's largest economy. Last week, Chinese trade data, industrial production and new loans were all upbeat.

Hong Kong's Hang Seng Index rose 1.2% to 22541.13, with the Hang Seng China Enterprises Index up 2.6% to 10185.55. The Shanghai Composite Index was up just 0.2% to 2106.16.

Big mainland banks did particularly well, with Agricultural Bank of China up 5.6% and Bank of China 3.1% higher in Hong Kong.

"We expect more upside ahead as investors seem to have warmed to the idea that China's economy has stabilized," said Zhang Yanbing, analyst at Zheshang Securities.

In Taiwan, where the Taiex was up 1.1% to 7986.27, Apple suppliers led gains following a report that the U.S. technology firm will release new products next month: Hon Hai Precision Industry Co. rose 2.1% and Pegatron Corporation added 6.9%.

Elsewhere in the region, Australia's S&P/ASX 200 rose 1% to 5157.70 and South Korea's Kospi was up 1.5% at 1913.03.

Write to Daniel Inman at daniel.inman@wsj.com

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(END) Dow Jones Newswires

August 13, 2013 04:56 ET (08:56 GMT)

Copyright (c) 2013 Dow Jones & Company, Inc.

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