Market Update
Asian shares climbed off lows, after data released yesterday showed that the U.S. trade gap narrowed with exports of goods and services rising to a record $175.6 billion in the month of April, indicating that the economic recovery may not be as weak as is being believed.
At the time of writing, the Nikkei was up 0.7%. The Shanghai Composite was off 0.2% ahead of its own trade data due later today while the Hang Seng was 0.7% lower. The S&P/ASX 200 was up 0.3%. The Sensex slipped 0.4% on opening, ahead of the release of factory output data for the month of April due later in the morning.
Chinese data showed the country's trade surplus widened to $13.05 billion, up from $11.4 billion in April, but still well below economists' forecasts of $19.8 billion.
Stocks on the Move
Japanese auto-makers were trading positive with Suzuki Motor Corp. gaining 3.1%. Mazda Motor rose 2.6% while Nissan was up just over 2%. Honda added 1.6% and Toyota, which is expected to announce its first post-quake earnings estimates, traded 1.6% higher.
Other gainers included TDK Corp. and Panasonic, up 1% and 1.9% each, respectively.
Shares of Hitachi lost 0.6% after the company forecast a net profit of 200 billion yen for the current financial year, as against a record profit of 238.9 billion reported in the just ended financial year in March.
Financials lost ground in Hong Kong as Agricultural Bank of China, ICBC, China Construction Bank and HSBC Holdings all traded lower in a range between 0.3% and 1%.
Baoshan Iron & Steel Company lost 0.8% on the mainland after it cut prices.
SAIC Motor Corp lost 1.6% along with other auto-makers also in the red, after data showed yesterday passenger car sales fell for the first time in two years.
Auto-majors continued their losing streak in Mumbai after disappointing May sales numbers yesterday. Maruti Suzuki, Hero Honda, Tata Motors, Mahindra & Mahindra and Bajaj Auto were lower between 0.1% and 1.6%.
The Sensex traded in the red as index heavyweights ITC, Reliance Industries, Reliance Infrastructure, Bharti and NTPC were all down in a range between 0.5% and 1.8%.
Resource stocks were on positive territory with Gloucester Coal up 3% after it said it would offer more than one million new shares to investors.
Index heavyweight BHP Billiton was up 0.7% and Rio Tinto added 0.5%.
Paladin Energy rose 3.7% after the company sought to dampen various market rumours.