ASIA MARKETS: Japan Stocks Surge To Lead Gains In Asia

By V. Phani Kumar, MarketWatch

HONG KONG (MarketWatch) -- Japanese stocks jumped Tuesday to lead Asian markets higher, with gains spread across sectors on a weakened yen and a report the government is considering a cut in corporate taxes.

The Nikkei Stock Average rose 1.3%, while elsewhere in Asia, South Korea's Kospi added 0.4%, and Australia's S&P/ASX 200 gained 0.2%.

The advance came in spite of weak overnight cues from Wall Street, where the Dow Jones Industrial Average (DJI) and the Standard & Poor's 500 Index (SPX) ended lower Monday, though the Nasdaq Composite (RIXF) saw a mild gain.

"Investors seem to be weighing the positives of an improving U.S. economy against the negatives of a weak global economy and the potential for the [Federal Reserve] to taper its bond-purchase program this fall," said Wells Fargo Advisors chief macro strategist Gary Thayer.

The solid advance in Tokyo also got help from a report in the Nikkei newspaper Tuesday that Prime Minister Shinzo Abe may propose a reduction in corporate taxes if he decides in favor implementing a planned increase in the consumption tax.

Among major movers, shares of Fuji Heavy Industries Ltd. (FUJHY) climbed 3.8%, Softbank Corp. (9984.TO) added 4.7%, Japan Tobacco Inc. (JAPAF) rose 3.5%, and Tokyo Electron Ltd. (TOELY) advanced 2.2%.

Data released earlier in the day showed Japan's core machinery orders fell 2.7% in June, a milder decrease than expected.

In Sydney, meanwhile, shares of miners BHP Billiton Ltd. (BHP) rose 0.4%, and Rio Tinto Ltd. (RIO) added 1%, extending recent gains that followed recent, better-than-expected economic data from China, a key consumer of industrial commodities.

However, shares of Stockland declined 1.4% after the developer and real-estate investor posted a 79% drop in full-year profit.

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