By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Japanese stocks on Monday bounced
strongly higher after a weak start, as several exporters climbed on
the yen's retreat, while other Asian markets diverged amid caution
ahead of the Federal Reserve's policy decision later this week.
Trading was choppy across the region as investors looked ahead
to the outcome of the Fed's two-day meeting on Wednesday, awaiting
more clues on the U.S. central bank's policy intentions, especially
on the pace of its monthly bond purchases.
"The ability of Fed Chairman Ben Bernanke to communicate
effectively the Fed's strategy over 'tapering' will be crucial to
determine whether market volatility persists," said Crédit
Agricole's Asia head of global markets research Mitul Kotecha.
After opening lower, the Nikkei Stock Average rose 1.2% by the
late morning in Tokyo, extending its bounce from Friday, when it
snapped a three-day losing streak to pare weekly losses. The
broader Topix climbed 1.3%.
South Korea's Kospi rose marginally after also dipping into
negative territory earlier in the day, while Hong Kong's Hang Seng
Index climbed 0.9%.
On the downside, the Shanghai Composite fell 0.4%, edging lower
after it snapped an eight-day losing streak on Friday, while
Australia's S&P/ASX 200 slipped 0.2%.
The divergence in regional markets came as equity index futures
based on the Standard & Poor's 500 Index (SPX) and the Dow
Jones Industrial Average (DJI) traded higher on Monday, after U.S.
stocks ended lower on Friday.
Major movers
In Tokyo, shares of several firms with a significant
international presence advanced as the dollar (USDJPY) strengthened
from the levels seen in late North American hours Friday.
Shares of Japan Tobacco Inc. (JAPAF) jumped 4.9%, and drug maker
Eisai Co. (ESALY) gained 3.1%, while tire producer Bridgestone
Corp. (BRDCY) climbed 3.6%.
Property developers extended gains in Hong Kong, with China
Resources Land Ltd. (CRBJF) rising 3.8%, and Cheung Kong Holdings
Ltd. (CHEUY) adding 2.7% after announcing it and its joint-venture
partners were buying a Dutch waste-processing firm.
Among energy producers, shares of Cnooc Ltd. (CEO) climbed 3.4%,
and those PetroChina Co. (PTR) added 1.9%, after benchmark U.S.
crude-oil futures jumped on Friday.
Shares of China Everbright Bank Ltd. climbed 2.1% in Shanghai,
and those of New China Life Insurance Co. advanced 2.5% in Hong
Kong, following news that Central Huijin Investment Ltd., a key
state-owned shareholder in major Chinese banks and financial firms,
had increased its stake in the two firms.
On the downside, the Hong Kong-listed shares of ICBC (IDCBY)
tumbled 5.1% as they began trading without rights to a
dividend.
Australian shares pulled back after Friday's strong rebound,
with miners in the lead.
BHP Billiton Ltd. (BHP) dropped 1.4%, and Rio Tinto Ltd. (RIO)
shed 1.7%.
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