ASIA MARKETS: Asia Stocks Trade Mostly Higher, But Japan Weak

By Michael Kitchen, MarketWatch

LOS ANGELES (MarketWatch) -- Most Asian stock markets saw modest gains Thursday, with energy stocks offering a bright spot after an increase for oil futures, though Japanese shares lagged.

South Korea's Kospi improved by 0.5%, leading gains among the major indexes, while Hong Kong's Hang Seng Index rose 0.3%, Australia's S&P/ASX 200 added 0.2%, and the Shanghai Composite swung to a 0.1% gain after trading solidly lower earlier in the day.

On the downside, Japan's Nikkei Stock Average lost 0.2%, though off its earlier lows.

After New York-traded oil futures scored their first win in three sessions on Wednesday, energy shares saw the broadest buying in Asia.

In Tokyo, Inpex Corp. (IPXHY) rose 2.3%, while Japan Petroleum Exploration Co. (1662.TO) added 0.9%, while in Sydney, Oil Search Ltd. (OSH.AU) tacked on 0.7% each.

Likewise, PetroChina Co. (PTR) rose 1.5% in Hong Kong -- though it slipped 0.2% in Shanghai -- after the stock was hit in recent sessions by news of an investigation into company executives.

Hong Kong-listed clothing and apparel exporters also saw some strength after overnight advances for the Dow Jones Industrial Average (DJI) and S&P 500 (SPX), as well as an improvement for European stocks.

Among them, Samsonite International SA (SMSOF) traded 1.9% higher, Giordano International Ltd. (0709.HK) rose 1.3%, and Esprit Holdings Ltd. (ESHDF) added 1.7% after posting a fiscal-year loss earlier in the week but also tipping a swing to profit next year.

BYD Co. (002594.SZ) added 3.6%, with Dow Jones Newswires citing a report that the firm had the capability to produce a high-performance electric sports car, while on the downside, shares of FIH Moblie Ltd. -- (FXCNF) formerly known as Foxconn -- lost 2%, tracking losses for key client Apple Inc. (AAPL) in the U.S.

Over in Shanghai, real estate traded weaker, with Poly Real Estate Group Co. down 1.5%, and Gemdale Corp. off by 2.1%.

In Japan, Mitsubishi Motors Corp. shares (MMTOY) were slapped down 7% after the Nikkei reported it was considering a public share offering, while Sharp Corp. (SHCAF) fell 6% on a Yomiuri Shimbun report that it too was seeking new share offering, said to total up to $2 billion.

Japan retailers traded mostly lower as a separate Yomiuri Shimbun report said Prime Minister Shinzo Abe had decided to go ahead with a planned sales-tax hike, though a senior official later said no final decision had been made.

Among the major retail names, Takashimaya Co. (TKSHF) fell 1.3%, J. Front Retailing Co. lost 1%, and Aeon Co. (AONNF) dropped 0.6%, though Fast Retailing Co. (FRCOY) managed to rise 1.7%.

Thursday's weakness followed some solid gains for Tokyo equities earlier in the week. Kim Eng Securities analyst Andrew Sullivan wrote that data on foreign transactions for the previous week showed some offshore support for shares.

"Key is big selling by foreigners of Japanese bonds and a similarly big rotation into Japanese stocks. [This is] likely to continue following the winning of the Olympic bid and the expectation of sales tax next year, accompanied with a large stimulus plan," he wrote Thursday.

Over in Australia, the market held ground after hitting a multiyear high in the previous session, even after weak employment data released in the morning.

Among the major movers, News Corp. (NWS) jumped 3.9% after Dow Jones Newswires reported Southeastern Asset Management Inc. had taken an 11.9% voting stake in the company, making it the largest shareholder behind Chairman Rupert Murdoch and his family trust.

News Corp. owns both Dow Jones Newswires and MarketWatch, the publisher of this report.

In Korea, meanwhile, Samsung Electronics Co. (SSNLF) added 1.1% after archrival Apple's weakness in U.S. trading Wednesday.

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