ASIA MARKETS: Japan Rises To New 15-year High As Asian Markets Mostly Gain

By Kosaku Narioka

Asian stocks rose Friday, with Japan's benchmark index extending gains to a new 15-year high on prospects for better earnings. Many markets were closed for the Lunar New Year holiday.

The Nikkei Stock Average rose 0.4% to 18332.30, the highest level since May 2000. In recent months, Japanese stocks have risen steadily as investors have taken a renewed interest in companies that have shifted their focus back to growth and efficiency.

Indonesian stocks were up 0.5%, New Zealand's NZX 50 added 0.4%, Thai shares were 0.4% higher, and the Philippines was up 0.3%. Australia's ASX 200 slipped 0.4%. India's Sensex was 0.4% lower.

China , Hong Kong , Singapore, South Korea and Taiwan were closed.

Gains in Asian stocks were limited because concerns remained about Greece's standoff with its European creditors, analysts said. On Thursday, Germany dismissed Greece's request (http://www.marketwatch.com/story/cracks-still-evident-as-germany-rebuffs-greek-extension-plan-2015-02-19) to extend its bailout program, setting up a complicated round of negotiations among eurozone governments. The euro (EURJPY) declined against the yen to Yen134.86 from Yen135.17 late Thursday in New York, according to EBS. The common currency also fell against the Australian dollar (EURAUD) to A$1.4521 from A$1.4591.

Takashi Ito, strategist at Nomura Securities, said Japan's earnings growth will likely accelerate in sectors that have been doing well, including autos, machinery, robots, electronic parts and steel. In addition, some firms in the domestic demand sector -- such as food and nondurable goods -- are starting to show improvement, he said.

"It is easier to increase prices using a weak yen as an excuse. Household incomes have also improved," he said, adding that some firms offering value-added products are successfully raising prices.

Japanese companies listed on the first section of the Tokyo Stock Exchange logged a combined 5.1% on-year rise in net profit for the nine-month period through December, according to SMBC Nikko Securities.

Among individual stock moves, Japan Display Inc. rose 5.4% amid speculation that the company will open a factory in Japan to supply parts to Apple Inc. (AAPL) A person familiar with the matter said Friday the company might build a factory to increase panel production, and that Apple would cover much of the plant's construction costs. Japan Display's rival Sharp Corp. lost 2%.

Australian waste management firm Transpacific Industries Group Ltd. fell 11% after it announced a first-half loss and warned that it doesn't expect any improvement in market conditions for the remainder of the financial year.

Medibank Private Ltd. lost 3.5%, despite a rise in first-half profit after it said rising health-care costs in Australia were prompting customers to drop insurance policies.

Meridian Energy Ltd. gained 5.1% after the company said electricity demand in January increased 4% from a year earlier.

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