ASIA MARKETS: Asian Stocks Mixed As China Data Lifts Sydney

By Daniel Inman

Asian markets were mixed Thursday, with shares in Sydney outperforming on upbeat economic data from China, while the yen's persistent strength continued to weigh on Tokyo shares.

Australia's benchmark S&P/ASX 200 closed up 1.1% at 5064.8, while the Nikkei Stock Average fell 1.6% to 13,605.56 in Tokyo following the prior session's 4.0% fall -- the market's fourth-largest decline so far this year.

Investor sentiment picked up strongly in Sydney after China's July trade figures indicated that growth in Australia's biggest trading partner was stabilizing after a downturn. Exports rose 5.1% on-year in July, compared with an expected 2.8% rise forecast by 14 economists polled by Dow Jones. Imports jumped 10.9% on-year compared with an expected 1.3% rise.

The data marks a sharp improvement on June, when exports dropped 3.1%, putting an end to the double-digit growth rates seen earlier this year.

"The positive reaction of the market shows just how much stock investors were putting into how well the economy fares, and so far it's looking OK," said Zhang Yanbin, analyst at Zheshang Securities.

Major resources companies posted strong gains, with Rio Tinto Ltd. (RIO) up 1.5% and BHP Billiton Ltd. (BHP) 1.2% higher.

Chinese stocks however were mixed as investors awaited further data on the domestic economy. Hong Kong's Hang Seng Index closed up 0.3% at 21655.88 and the Shanghai Composite fell 0.1% to 2044.90.

The Nikkei started the day higher but ended sharply lower after the yen (USDJPY) extended its recent gains against the U.S. dollar in late Asian trade. A stronger yen hurts Japanese companies that rely on overseas income.

"Until fresh dollar buying catalysts appear, the currency levels are not going to encourage much new investor capital," said Hiroichi Nishi, general manager of equities at SMBC Nikko Securities.

Earnings season continued in Tokyo, with the market digesting reports from large Japanese companies.

Mitsui Fudosan rose 1.5% after the real estate firm reported that its operating profit for the first quarter rose 8.3% on-year, beating analyst expectations, due to strong performance in its office-leasing business and condominium sales.

Machinery and equipment manufacturer Kubota Corp. jumped 1.6% after the company reported that first-quarter operating profit grew 50% on year, due to a weaker yen in that period and a change of accounting method for its subsidiaries.

Taiwan's Taiex ended down 0.2% at 7907.67, with Acer Inc. falling 4% after the PC maker posted a surprise net loss in the second quarter, citing lower sales, and higher chips and marketing costs.

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