SINGAPORE: Asian stocks rose on Thursday, Aug 19 on hopes that a surge in U.S. mortgage applications will shore up a faltering recovery, while the yen hobbled on reports that the central bank was considering steps to contain its export-sapping rise.
The MSCI index of Asia-Pacific stocks outside Japan rose about 0.7 percent. The index has shed more than a percent so far this year.
The yen dipped against the dollar as jitters about whether Japanese authorities would take new steps to rein in the yen's rise left investors reluctant to chase it higher.
Investors are watching to see if the central bank will take more monetary easing steps -- such as expanding liquidity -- ahead of a meeting between Prime Minister Naoto Kan and Bank of Japan Governor Masaaki Shirakawa expected on Monday.
Japan's Nikkei average rose 1.3 percent, buoyed by short-covering and bargain-hunting by domestic investors after falls earlier this week, but the yen's overall strength against the dollar capped further gains.
"There's certainly expectations in the stock market for the Kan-Shirakawa meeting, which of course raises the danger that if nothing comes out in the way of policy stocks could fall, especially if the yen strengthens," said Nagayuki Yamagishi, a strategist at Mitsubishi UFJ Morgan Stanley Securities.
The Sankei newspaper reported that the BOJ may either expand the size of its fund supply to 30 trillion yen ($352 billion) from the current 20 trillion yen, or extend the duration of cheap, fixed-rate loans to banks to six months from the present three months.
Canon Inc and other exporters gained as the dollar clawed higher against the yen on the Sankei report.
Shanghai shares rose 0.8 percent to their highest in more than three months, with banks gaining after authorities said local government debt risk was under control.
The Ministry of Finance and the China Banking Regulatory Commission said in a statement overall risk from a pile of debt racked up by local governments in a surge of stimulus spending last year was being managed adequately.
Analysts said banking shares were set for further gains as investor confidence in the sector was growing.
"Banks have had good earnings results recently and Everbright Bank's listing yesterday has given momentum to rise further," said Chen Xingyu, an analyst at Phillip Securities in Shanghai.
Another boost for banks came after Central Huijin Investment Co, the largest shareholder of China's state-controlled banks, said it would sell up to 40 billion yuan ($5.89 billion) of bonds.
Shares in Hong Kong finished 0.2 percent higher after a retreat by China Mobile threatened to wipe out gains driven by a rally in commodity-related plays.
China Mobile Ltd fell 3 percent, erasing much of the Hang Seng Index's gains in the latter half of the session, after it issued a downbeat outlook.
Australian stocks gained 0.1 percent after positive outlook statements from companies such as Brambles and QBE Insurance helped outweigh the drag from a second negative day for BHP Billiton.
BHP Billiton, the world's largest miner, slipped 0.3 percent after ratings agency Standard and Poor's said it would downgrade its credit rating if BHP proceeded with its $39 billion bid for Potash Corp.
South Korean shares rose 1 percent, gaining for a third straight session, as investors snapped up oversold stocks such as Hyundai Motor and Hynix on easing economic worries.
"Investors are still grappling with the weakening global economy but they are reassessing Asia, which has a more resilient economy and could pull the world out of a further slowdown," said Ryu Yong-suk, an analyst at Hyundai Securities.
Shares in India closed up more than a percent after hitting 30-month highs, while Singapore shares gained less than a percent. Taiwan stocks ended flat.
Gold prices rose towards $1,230 an ounce, close to the previous session's near seven-week high, as concerns over the outlook for economic growth supported investment demand for the precious metal.
Oil rose to $76 a barrel, boosted by the rally in some equity markets in Asia on expectations of strong Chinese demand. - Reuters
The MSCI index of Asia-Pacific stocks outside Japan rose about 0.7 percent. The index has shed more than a percent so far this year.
The yen dipped against the dollar as jitters about whether Japanese authorities would take new steps to rein in the yen's rise left investors reluctant to chase it higher.
Investors are watching to see if the central bank will take more monetary easing steps -- such as expanding liquidity -- ahead of a meeting between Prime Minister Naoto Kan and Bank of Japan Governor Masaaki Shirakawa expected on Monday.
Japan's Nikkei average rose 1.3 percent, buoyed by short-covering and bargain-hunting by domestic investors after falls earlier this week, but the yen's overall strength against the dollar capped further gains.
"There's certainly expectations in the stock market for the Kan-Shirakawa meeting, which of course raises the danger that if nothing comes out in the way of policy stocks could fall, especially if the yen strengthens," said Nagayuki Yamagishi, a strategist at Mitsubishi UFJ Morgan Stanley Securities.
The Sankei newspaper reported that the BOJ may either expand the size of its fund supply to 30 trillion yen ($352 billion) from the current 20 trillion yen, or extend the duration of cheap, fixed-rate loans to banks to six months from the present three months.
Canon Inc and other exporters gained as the dollar clawed higher against the yen on the Sankei report.
Shanghai shares rose 0.8 percent to their highest in more than three months, with banks gaining after authorities said local government debt risk was under control.
The Ministry of Finance and the China Banking Regulatory Commission said in a statement overall risk from a pile of debt racked up by local governments in a surge of stimulus spending last year was being managed adequately.
Analysts said banking shares were set for further gains as investor confidence in the sector was growing.
"Banks have had good earnings results recently and Everbright Bank's listing yesterday has given momentum to rise further," said Chen Xingyu, an analyst at Phillip Securities in Shanghai.
Another boost for banks came after Central Huijin Investment Co, the largest shareholder of China's state-controlled banks, said it would sell up to 40 billion yuan ($5.89 billion) of bonds.
Shares in Hong Kong finished 0.2 percent higher after a retreat by China Mobile threatened to wipe out gains driven by a rally in commodity-related plays.
China Mobile Ltd fell 3 percent, erasing much of the Hang Seng Index's gains in the latter half of the session, after it issued a downbeat outlook.
Australian stocks gained 0.1 percent after positive outlook statements from companies such as Brambles and QBE Insurance helped outweigh the drag from a second negative day for BHP Billiton.
BHP Billiton, the world's largest miner, slipped 0.3 percent after ratings agency Standard and Poor's said it would downgrade its credit rating if BHP proceeded with its $39 billion bid for Potash Corp.
South Korean shares rose 1 percent, gaining for a third straight session, as investors snapped up oversold stocks such as Hyundai Motor and Hynix on easing economic worries.
"Investors are still grappling with the weakening global economy but they are reassessing Asia, which has a more resilient economy and could pull the world out of a further slowdown," said Ryu Yong-suk, an analyst at Hyundai Securities.
Shares in India closed up more than a percent after hitting 30-month highs, while Singapore shares gained less than a percent. Taiwan stocks ended flat.
Gold prices rose towards $1,230 an ounce, close to the previous session's near seven-week high, as concerns over the outlook for economic growth supported investment demand for the precious metal.
Oil rose to $76 a barrel, boosted by the rally in some equity markets in Asia on expectations of strong Chinese demand. - Reuters
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