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 Average supported by a drop in the yen and the Hang Seng Index helped by financials, in an otherwise range-bound session for Asia.

After gaining 6.4% over the last six sessions, the Nikkei Stock Average climbed another 2.6% Friday to close at a level last seen before the collapse of Lehman Brothers in 2008.

Hong Kong's Hang Seng Index sat 1.6% in late afternoon trading, heading for a likely third gain in four sessions, while the Shanghai Composite Index was up 0.2% late, after moving in and out of negative territory throughout the day.

The rest of the region saw a relatively flat performance, with Australia's S&P/ASX 200 finishing 0.3% higher, as the China trade data pulled the market off early losses, while South Korea's Kospi closed 0.1% lower.

Asia markets have had a bumpy ride in recent sessions, with fresh government curbs on the Chinese property sector sending 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 95.34 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 once again helped the fortunes of many Japanese exporter shares, as Mazda Motor Corp. (7261.TO) and Bridgestone Corp. (BRDCY) each closed 5.8% higher, while Alps Electric Co. (APELY) advanced 3.9%.

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 6.2% and Credit Saison Co. (8253.TO) ahead by 4.5%.

Home builder Sekisui House Ltd. surged 15% after the firm late Thursday announced a 60.4% rise in fiscal-year net profit, while Uniqlo-owner Fast Retailing Co. (FRCOY) jumped 9.8% Friday to push its gains for the week to 24.1%.

In Hong Kong, financials gained, with 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%.

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 mainland Chinese trading, property major China Vanke Co. fell 1.3% and broker Citic Securities Co. declined 1.5%.

Shares of China Everbright Bank Co. traded flat, 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) ending down 1.2%, and consumer electronics heavyweight Samsung Electronics Co. (SSNLF) falling 1.4%.

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 [Chinese trade] 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," said CommSec chief economist Craig James.

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