ASIA MARKETS: Asia Markets Mostly Up, As Resource Stocks Gain

By V. Phani Kumar, MarketWatch

HONG KONG (MarketWatch) -- Most Asian markets posted modest gains Wednesday after a record finish for the Dow Jones Industrial Average, with resource stocks getting a boost, while Tokyo saw strength for its exporters.

Japan's Nikkei Stock Average climbed 0.7%, with exporters fronting the gains amid expectations that the U.S. dollar (USDJPY) may soon cross the 100-yen level in a move that would boost their repatriated earnings.

"We believe that it will only be a matter of time before this level is taken out," said BK Asset Management managing director Kathy Lien.

Among stocks sensitive to currency movements, Toyota Motor Corp. (TM) added 1.1%, Canon Inc. (CAJ) climbed 2.2% and Komatsu Ltd. (KMTUF) gained 1.8%.

Elsewhere, South Korea's Kospi added 0.8%, and Taiwan's Taiex inched up 0.3%, while Australia's S&P/ASX 200 dropped 0.3% after data showing a decline in consumer sentiment, with banks and retail stocks leading Sydney's retreat.

Hong Kong's Hang Seng Index gained 0.2% after monthly Chinese data showed strong growth in imports, resulting in a small trade deficit in March, but the Shanghai Composite slipped 0.1% in choppy trade.

The broad regional advance followed a higher finish on Wall Street overnight, when the Dow industrials (DJI) ended at a record level. But some analysts raised concerns over U.S. earnings growth -- a key factor for sentiment in global markets.

"The current U.S. reporting season is set to be a modest one ... with over 100 companies of the S&P 500 (SPX) having already provided negative guidance for the first quarter," said Perpetual head of investment market research Matthew Sherwood.

"Firms with exposure to the deterioration in Europe, the slowing in Asia and the U.S. dollar's strength can expect some further downside risk to their numbers," he said.

Several resource-sector stocks advanced across the region after commodity prices climbed overnight in the U.S. and as the strong imports data for China underpinned hopes for demand in the world's second-largest economy.

In Japan, steel maker JFE Holdings Inc. (5411.TO) climbed 3.7% and commodities trader Marubeni Corp. (MARUY) rose 3.8%; in Sydney, BHP Billiton Ltd. (BHP) and Rio Tinto Ltd. (RIO) advanced 2.6% and 2.8%, respectively, despite the broader market's weakness; and in Seoul, shares of Posco (PKX) gained 3.2%.

In Hong Kong, Aluminum Corp. of China Ltd. (ACH) climbed 4.8%, and Jiangxi Copper Co. (JIXAY) rose 2.8%, while in Shanghai, the pair jumped 5.6% and 1.7%, respectively.

Bank stocks and retailers retreated in Sydney after data showing consumer sentiment weakened in April, with National Australia Bank Ltd. (NABZY) slipping 1%, and Woolworths Ltd. (WOLWF) sliding 1.5%.

Shares of sportswear maker Billabong International Ltd. (BLLAY) plunged 25.3% after saying it was in talks with a private-equity consortium over a takeover offer for the firm that was 45% below previous indicative offers.

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