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Asia Stocks Rise; Hong Kong Climbs, Tokyo Jumps

AA, GM, RIO, SNE, BCMXY, WARFY, NDVLY, FSUMY, BACHY, BRDCF, ISUZY, ASBRY, HYMTF, KNBWY

Hong Kong stocks climbed Thursday after China reported December exports were larger than expected, and Japanese stocks jumped after the JPY tapped a new 2.5 yr low against the USD

Japan’s Nikkei Stock Average advanced 0.8%, while Hong Kong’s Hang Seng Index rose 1%.

The moves for the region’s largest markets took place in a broadly positive session for Asia stocks.

The Shanghai Composite Index rose 0.7%, South Korea’s Kospi traded 0.3% higher, and Australia’s S&P/ASX 200 index gained 0.4%.

Ahead of the data, most of Asia traded in a tight range after a modestly positive session for US stocks Wednesday, where investors welcomed earnings and guidance from Aloca Inc. NYSE:AA.

Asian investors already had their chance to react to Alcoa’s earnings, which were released after the Bell Tuesday, and had been looking about for fresh cues.

Chinese trade data for December, provided a boost for markets Thursday, with the world’s 2nd largest economy reporting a $31.6-B trade surplus, well above economists’ expectations for a $19.6-B surplus, with exports rising 14.1% from a year earlier.

Hong Kong-listed property firms, sensitive to perceptions about the health of the Chinese economy gained notably after the data, with New World Development Co. PINK:NDVLY + 3.4% and Wharf Holdings Ltd. PINK:WARFY adding 1.4%.

Similarly, banks rose, with Bank of China Ltd. PINK:BACHY improving by 1.2% and Bank of Communications Co PINK:BCMXY + 0.7%.

In Japan, investors found buying impetus from the yen’s latest multi-year low. With the USD/JPY firmly over the Yen 88 mark, investors bought exporter shares on hopes prolonged yen weakness would boost the sector’s competitiveness.

Notable moves included a 3% advance for Sony Corp. NYSE:SNE, a 1.8% rise for Bridgestone Corp. PINK:BRDCF and a 9.6% jump for Mazda Motor Corp. TO:7261 often among the most currency-sensitive of the major Japanese auto makers

Isuzu Motors Ltd. PINK:ISUZY rallied 3.8% after confirming that it plans to rekindle a tie-up with General Motors Co. NYSE:GM, with the 2 in talks to jointly develop a new pickup truck. Their combined global market share would total some 25%, according to a Nikkei news report.

Brewers were among the decliners in Tokyo as investors shunned more defensive areas of the market, with Asahi Group Holdings Ltd. PINK:ASBRY losing 2.1%, Sapporo Holdings Ltd. down 1.4%, and Kirin Holdings Co. PINK:KNBWY lower by 0.5%.

In South Korean trading, steel giant Posco fell 1.4% while LG Display Co. lost 1.5% to counterbalance a 0.7% gain for Hyundai Motor Co.PINK: HYMTF.

Over in Australia, miners staged a turnaround after the Chinese data, with Rio Tinto Ltd. NYSE:RIO + 0.3%, and Fortescue Metals Group Ltd. PINK:FSUMY rising 1.2%.

MacMahon Holdings Ltd. ASX:MAH gained 1.8% after receiving a new offer for its construction assets.