ASIA MARKETS: Japan, Hong Kong Stocks Surge In Asia

By Sarah Turner, MarketWatch

SYDNEY (MarketWatch) -- Japanese and Hong Kong stocks rallied Friday, with the Nikkei supported by a drop in the yen to levels last seen almost four years ago and Hang Seng Index investors picking up on better Chinese trade data, in an otherwise range-bound session for Asia.

After gaining 6.4% over the last six sessions, the Nikkei Stock Average climbed another 2.4% Friday to a level last seen before the collapse of Lehman Brothers in 2008, after a drop in the yen to a 2009 low against the dollar.

Hong Kong's Hang Seng Index , jumped 1.8% for a likely third gain in four sessions, while the Shanghai Composite Index dipped 0.2% for a potential second straight loss.

The rest of the region saw a relatively flat performance, with Australia's S&P/ASX 200 up 0.3%, as the China trade data pulled the market off early losses, while South Korea's Kospi edged down 0.2% and Singapore's Straits Times Index slipped 0.1%.

It's been a bumpy week for Asia markets, after fresh government curbs on the Chinese property sector sent stocks tumbling at the start of the week.

Still, Friday saw some better news from China, with the country recording a surprise $15.3 billion trade surplus in February, confounding expectations the economy would swing to a trade deficit due to seasonal weakness from the weeklong Chinese Lunar New Year holiday last month.

February's exports were 21.8% higher than a year earlier, when the Lunar New Year fell in January, while imports were 15.2% lower than the year-earlier month. Dow Jones Newswires had projected exports to rise 5% and imports to fall 10%, while Reuters had exports increasing 10.1% and imports dropping 8.8%. (Read more on Chinese trade data http://www.marketwatch.com/story/china-posts-surprise-trade-surplus-despite-holiday-2013-03-07.)

"The improving trend in Chinese export growth adds to confidence that the global economy is improving," said AMP Capital head of investment strategy Shane Oliver.

Stepping back from intraday moves, Oliver said that after recent big gains, shares are still vulnerable to a deeper correction than the slight wobble seen during the second half of February.

"However, any setbacks are likely to be mild, and the broad trend in share markets is likely to remain up," he said.

Wall Street stocks rose Thursday, after a six-week low for jobless claims added to optimism over the U.S. employment picture ahead of key February nonfarm payrolls due out later Friday. Read: U.S. stocks climb as jobless claims dip and What to look for in the February jobs report

Ahead of the report, the dollar (USDJPY) traded at 95.35 yen, up from Yen94.85 reached in late North American trading on Thursday and passing the Yen95 mark for the first time since August 2009. The yen's fall accelerated after the Chinese trade data. Read: Why the dollar could rise on a good -- or bad -- payrolls report.

The yen's losses again helped the fortunes of many Japanese exporter shares, as Mazda Motor Corp. (7261.TO) gained 5.8%, Bridgestone Corp. (BRDCY) rose 5.3%, and Alps Electric Co. (APELY) advanced 3.7%.

The yen's moves also fed into optimism over Japan's fight against deflation, which helped the financial sector move higher in Tokyo.

Some of the second-tier brokers did particularly well, with Matsui Securities Co. (MAUSY) adding 5.8% and Credit Saison Co. (8253.TO) ahead by 4.9%.

Home builder Sekisui House Ltd. surged 15.5% after the firm late Thursday announced a 60.4% rise in fiscal-year net profit to Yen46.5 billion, while Uniqlo owner Fast Retailing Co. (FRCOY) extended this week's rise to 22.3% with another 8.2% jump on Friday.

In Hong Kong, financials gaining included Bank of China Ltd. (BACHY), up 1.7% for a weekly gain of 3.6%, and China Construction Bank Corp. (ACGBY) higher by 2.4% for a weekly gain of 1.9%. Heavyweight HSBC Holdings PLC (HBC) rose 2.5% to move into a marginal gain for the week -- the firm lost ground early in the week after reporting earnings.

Energy companies were particularly strong, as China Shenhua Energy Co. (CSUAY) jumped 4.7%, China Coal Energy Co. (CCOZY) rallied 4.4% and Cnooc Ltd. (CEO) climbed 3.6%.

China's National Development and Reform Commission chief said the government may reconsider its current fuel-pricing mechanisms.

Of the handful of firms trading in the red, were three property companies. Sino Land Ltd. (SNLAY) fell 1.3%, New World Development Co. , (NDVLY) lost 0.9% and Sun Hung Kai Properties Ltd. (SUHJY) lost 0.3%.

In Shanghai, however, the picture was more mixed. Banks were mostly lower, with Agricultural Bank of China Ltd. down 0.4%, and China Citic Bank Corp. down 0.7%.

Broker Citic Securities Co. declined 1.3%, and over in Shenzhen, property major China Vanke Co. fell 1.7%.

Shares of China Everbright Bank Co. moved 0.3% lower, with Dow Jones Newswires reporting the firm is relaunching plans for a Hong Kong listing that could be worth some $1.5 billion. Read: China Everbright to relaunch Hong Kong IPO plan

In South Korean trading, exporters competing with Japanese firms were weaker, with auto giant Hyundai Motor Co. (HYMTF) down 1.7% and consumer electronics heavyweight Samsung Electronics Co. (SSNLF) falling 1.6%.

In Sydney, investors were buying into resources after the data from China -- the biggest customer for many Australian firms.

Shares of Rio Tinto Ltd. (RIO) gained 1.8%, Newcrest Mining Ltd. (NCMGF) rose 1.4% and copper miner PanAust Ltd. climbed 2.7%.

"The data is good news for Australian resource producers, because China needs commodities to churn out the finished goods. It also serves to support the Australian dollar at levels around $102," said Craig James, chief economist at CommSec.

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