ASIA MARKETS: Most Asian Markets Rebound After Heavy Losses

By V. Phani Kumar, MarketWatch

HONG KONG (MarketWatch) -- Most Asian stocks rebounded Thursday from the previous day's sharp losses, aided by strong monthly trade data from China and some upbeat earnings reports. Japanese shares tumbled in volatile trade amidst a strengthening yen.

Australia's extended early gains to finish 1.1% higher, and Hong Kong's Hang Seng Index climbed 0.4% in afternoon trade after data from China showed both its exports and imports climbed more than expected in July, recovering from the weakness seen in June.

China's Shanghai Composite eased 0.3% in choppy trade.

"Together with the rebounding official Purchasing Managers' Index ... July trade data are supportive of a better economic outlook for China and will surely help boost market confidence," said Ting Lu, a China economist at Bank of America Merrill Lynch.

Japan's Nikkei Stock Average ended 1.6% lower, adding to its 4% plunge Wednesday, and despite rising earlier in the day.

The losses came as the U.S. dollar (USDJPY) fell further to slide toward Yen96. Earlier in the day, the Bank of Japan left its policies unchanged, as expected, while saying the domestic economy was "starting to recover moderately."

The day's performance in Asia followed a third straight day of losses on Wall Street, amid uncertainty over the timing of the Federal Reserve's widely expected reduction in monthly bond purchases.

"Markets have moved into a 'sell on the rumor, buy on the fact' mode in the wake of the end of the U.S. [earnings reporting] season and rising concerns about U.S. Fed's tapering," said Perpetual head of investment research Matthew Sherwood.

U.S. equity futures edged higher during Asian stock trade, with those on the Dow Jones Industrial Average (DJU3) and the Standard & Poor's 500 (SPU3) adding 0.3% and 0.2%, respectively.

Among stocks losing ground in Tokyo, Hino Motors Ltd. (HINOY) and Tokyo Electric Power Co. (TKECY) slumped 5% each, Panasonic Corp. (PCRFY) lost 3.3% and Tokyu Land Corp. (8815.TO) shed 4.6%.

In Sydney, meanwhile, shares of Telstra (TTRAF) rose 2.4% after the telecommunications major posted a forecast-beating 12% increase in annual profit.

Shares of mining giant Rio Tinto Ltd. (RIO) tacked on 1.5% before the release of its own financial results.

Over in Hong Kong, shares of banking heavyweight HSBC Holdings PLC (HBC) rose 0.5% and China Coal Energy Co. (CCOZY) gained 2.2%, while footwear major Belle International Holdings Ltd. (BELLY) climbed 3.5%.

In Shanghai, several financial and property stocks drifted lower amid lingering economic worries.

Shares of Citic Securities Co. (CIIHF) dropped 1.5% and Southwest Securities Co. fell 2.6%, while Gemdale Corp. lost 1.8%.

Elsewhere, South Korea's Kospi added 0.3% after the Bank of Korea left its policy interest rate unchanged, as widely expected.

In Seoul, KB Financial Group Inc. (KB) rose 1.4%, and Shinhan Financial Group Co. (SHG) added 0.4%.

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