By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Asian markets rebounded Tuesday as a
higher finish on Wall Street helped sentiment a day after most
regional equities suffered a sell-off, with Japanese stocks
extending gains on hopes for further monetary easing under a new
central bank chief.
Mainland Chinese stocks advanced in choppy trading as the
National People's Congress -- the country's parliament -- began its
annual session, although property developers fell further under the
lingering influence of fresh restrictions imposed on the sector
late last week.
"Riding on the late-session rally in U.S. equities overnight,
Asian markets so far have opened on a positive tone. However,
continued uncertainty surrounding Italian politics and central bank
monetary decisions means price gains would likely be capped," said
strategists at Credit Agricole.
The Nikkei Stock Average rose 0.7% in Tokyo, while Australia's
S&P/ASX 200 index rose 1.5% and South Korea's Kospi gained
0.6%.
U.S. investors on Monday shrugged off the losses in Shanghai,
sending the Dow Jones Industrial Average (DJI) to its
second-highest level on record, with investors buying up defensive
firms. Read: Stock gain lifts Dow average to second-highest
level.
Hong Kong's Hang Seng Index climbed 0.4%, and the Shanghai
Composite gained 0.7% a day after it slumped 3.7% for its worst
loss since August 2011. The Shanghai benchmark had briefly dipped
into the red earlier in the session.
The rebound came after outgoing Premier Wen Jiabao kicked off
the annual session of the NPC by announcing an economic growth
target of 7.5% for 2013, in line with expectations. Jiabao also
unveiled other estimates that broadly fell within market
expectations, including a targeted budget deficit of 1.2 trillion
yuan ($192 billion) this year, up from last year's 800 billion
yuan.
The rebound on mainland bourses was led by financial, resource
and industrial stocks, with Jiangxi Copper Co. (JIXAY) rising 0.9%
and Bank of Communications Co. (BCMXY) adding 0.8%.
But property stocks remained a weak spot, amid fears that the
latest restrictions on the sector may undo a recent recovery in
home prices. Gemdale Corp. lost 3% and Poly Real Estate Group Co.
fell 2.7% in Shanghai, while China Vanke Co. dropped 1% in
Shenzhen. All three stocks had plunged by the day's 10% limit on
Monday.
In Hong Kong, local property developers rose to help offset a
0.6% drop in shares of HSBC Holdings PLC (HBC) after the
heavyweight lender on Monday reported 2012 results that fell short
of expectations.
Japanese shares, which had on Monday defied broad regional
declines, added to their gains on the back of a continued rally in
real estate and financial sectors.
The rise in Tokyo came a day after the government's nominee for
Bank of Japan Gov., Haruhiko Kuroda, made remarks favoring bolder
monetary policies to meet the central bank's recently-adopted
target of achieving a 2% inflation.
Kuroda is expected to succeed incumbent Masaaki Shirakawa, who
will be stepping down on March 19.
Finance Minister Taro Aso said at a press conference Tuesday
that he expects Kuroda to handle monetary policy in line with the
joint pact signed by the BOJ earlier this year, aimed at spurring a
sluggish economy.
Heavyweight stock Fast Retailing Co. (FRCOY) fronted the
advance, jumping 5.9% after reporting a 9.6% increase in sales at
its Uniqlo casual clothing chain in February.
Real-estate and banking shares climbed further amid an improved
economic outlook, with Mitsubishi UFJ Financial Group Inc. (MTU)
added 0.4% and Mizuho Financial Group Inc. (MFG) gained 1%, while
Japan Real Estate Investment Corp. (8952.TO) advanced 1.3%.
The retail sector climbed in Sydney after data showing industry
sales rose 0.9% on an adjusted basis in January, beating economist
expectations for a 0.4% gain.
Myer Holdings Ltd. gained 2.3%, while David Jones Ltd. advanced
3.1%.
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