ASIA MARKETS: Hong Kong Stocks Rise, Japan Drops In Choppy Asia

By V. Phani Kumar, MarketWatch

HONG KONG (MarketWatch) -- Hong Kong stocks rose and Japanese shares fell Wednesday, with trading in most Asian markets turning choppy ahead of Federal Reserve Chairman Ben Bernanke's congressional testimony later in the day.

Hong Kong's Hang Seng Index climbed 0.6%, Australia's S&P/ASX 200 added 0.1%, and South Korea's Kospi gained 0.8%, with all of them reversing early losses.

Japan's Nikkei Stock Average fell 0.7% in Tokyo afternoon trading after ending at a seven-week high Tuesday, while the Shanghai Composite lost 0.2%, after changing direction a few times.

"While we don't expect Bernanke to say anything dramatically different from last week, speeches by policy makers are organic, and under tough grilling from Congress, Bernanke could reveal more than he otherwise wanted," said BK Asset Management managing director Kathy Lien.

The Fed chairman's two days of testimony, starting Wednesday, comes after global equity markets got a boost on his remarks last week that the U.S. central bank was in no hurry to raise interest rates.

U.S. stocks fell Tuesday, with Coca-Cola Co. (KO) and Goldman Sachs Group Inc. (GS) losing ground after their quarterly results, and as investors considered Kansas City Fed President Esther George's comment that the Federal Reserve should pare its bond purchases sooner rather than later.

The gains in Hong Kong came as official data showing foreign-direct-investment flows into China jumped more than 20% in June.

Sentiment was also aided after the Xinhua news service reported that profit at state-owned companies outside the financial sector rose 7% in the first half of the year, accelerating from a 6.5% increase in the first five months of 2013.

Meanwhile, China's Ministry of Land and Resources said separately that land prices were expected to rise further in the current quarter, according to a Reuters report.

Chinese coal miners posted strong gains after sharp losses over the past month, with China Shenhua Energy Co. (CSUAY) soaring 5.6%, and China Coal Energy Co. (CCOZY) rising 4% in Hong Kong; their Shanghai-listed shares climbed 1.6% and 1%, respectively, although the broader market fell after witnessing some volatile moves.

Datang International Power Generation Co. rose 1.5% in Hong Kong and 3.7% in Shanghai after saying it expects its profit to jump 70%-80% in the first half of 2013 from the year-earlier period.

Australian miners were among the region's notable stock gainers Tuesday, with BHP Billiton Ltd. (BHP) climbing 2.2% after its iron-ore production hit a record high in the previous financial year. The diversified resources firm also produced more oil and gas in the year ended June 30.

Fellow miner Rio Tinto Ltd. (RIO) rose 1.7% on top of its 1.4% advance Tuesday after reporting its own iron-ore production hit a record level in the second quarter.

Shares of surfwear maker Billabong International Ltd. (BLLAY) spiked 33% on news the company has secured a private-equity loan and was replacing its chief executive.

Several exporters declined in Tokyo, with industrial automation firm Fanuc Corp. (FANUY) dropping 1.6%, and Canon Inc. (CAJ) losing 1.9% after the weak lead from the U.S.

But shares of NEC Corp. (NIPNF) jumped 4.8% in strong volume after the Nikkei newspaper reported the company will exit the smartphones business after it was unable to tie up with Lenovo Group Ltd.

Shares of Lenovo (LNVGY) gained 0.7% in Hong Kong.

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