Market Update
Japanese shares were laggards Friday while most Asian markets moved up, shrugging off weak cues from Wall Street overnight and some mixed data from Japan.
The Nikkei edged up 0.2%. The Shanghai Composite was up 0.3% while the Hang Seng gained 1.3%. The Sensex edged up 0.2% while the All Ordinaries was up 0.4%.
Data in Japan showed the country’s household spending unexpectedly dropped in February, down 2.5%, while retail sales gained 3.6% versus expectations for a 3.2% increase. Finance Minister Taro Aso said data showing a drop in household spending just before the first sales tax hike since 1997 was a problem and that the government would speed up expenditure, putting 40% of expenditures for the next financial year into the April-June quarter.
In other data, the nationwide core consumer price index rose 1.3% from a year ago, marking the ninth straight month of increase, and in line with forecasts. The jobless rate stood at 3.6%.
In Beijing, Chinese Premier Li Keqiang said economic growth should be maintained at a "reasonable" pace, his comments coming on the back of a series of steps that could provide a stimulus to the economy.
Stocks on the Move
Sony and Canon were up about half a percent each. Earlier, Sony announced the sale of some of its property in Tokyo to Sumitomo Realty. Shares of Sumitomo edged up 0.2%.
Panasonic dropped 2.9% even as its CEO Masayoshi Son declined to comment on the company’s reported plans to produce batteries for electric car-maker Tesla.
Olympus and Toshiba were down about 1.8% and 1% each, respectively.
Yahoo Japan was a big loser, down about 7% after it said it has bought mobile provider eAccess from Softbank (a majority shareholder in Yahoo Japan), for 324 billion yen. Softbank was also lower, falling 2%.
Retailers were mostly up after the upbeat data with Fast Retailing up 1.6% and FamilyMart up 0.9%. Seven & I Holdings was up 1.2% but J. Front edged 0.1% lower.
The focus was mostly on earnings in the Chinese markets with shares of China’s biggest bank ICBC up 2.8%. ICBC reported a 10% gain in 2013 net profit, beating estimates.
China Citic Bank gained 1.4%. The bank reported results late Thursday.
Other Chinese lenders were also higher with AgBank and Bank of Communications up 1.5% and 1.8% each, respectively.
However, Wharf Holdings dropped 0.3% after disappointing results while China COSCO Holdings fell 0.9% despite swinging to an annual profit.
In Mumbai, the Sensex touched a fresh lifetime high for the third straight session in morning trade. SBI was up 2.6%, followed by Hindalco, up 2.2%.
Tata Power, Dr. Reddy’s Lab, SSLT, RIL, Axis Bank, NTPC, TCS, Wipro, Infosys, Cipla, and Tata Steel were all higher in a range between 1% and 1.8%.
In Sydney, major miners BHP Billiton and Rio Tinto were up 0.7% and 0.1% each, respectively.
Fortescue Metals was up 1.6% while OZ Minerals gained 3.7%.
Virgin Australia soared 3.4% after the airline said Singapore Airlines increased its stake in the company to a little over 22% from 20% earlier.