By Chris Oliver, MarketWatch
HONG KONG (MarketWatch) — Japan’s better-than-expected GDP data helped lift Tokyo stocks, while China investors shrugged off signs of further Beijing policy-tightening measures.
Japan’s Nikkei Stock Average added 1.1%, Australia’s S&P/ASX 200 edged down 0.1% and South Korea’s Kospi Composite was almost flat, rising just 0.04%. Hong Kong’s Hang Seng index fell 0.8%.
China’s Shanghai Composite ended 1% higher.
Still, sentiment was cautious amid concerns of renewed European sovereign-debt problems, and China’s potential further monetary tightening was also a focus in Asia as senior officials at the People’s Bank of China called for vigilance against rising inflationary pressures.
Citi issued an upbeat report on the regional outlook, saying stocks didn’t appear overvalued on a variety of measures that historically have provided warning of excessive exuberance.
“What all the questions regarding a bubble tell us, though, is that there remains a wall of worry,” Citi analysts headed by Marcus Rosgen in Hong Kong said, in a note Monday.
In Europe, leaders there over the weekend urged Ireland to accept a bailout from the European Union’s emergency-loan facility to help restore confidence in financial markets and avert a spread of worries to other euro-zone members, even as Ireland denied it needed assistance.
The news helped to bolster the euro against the yen, and also added some impetus to exporters in Tokyo.
Among companies with relatively high exposure to Europe, Mazda Corp. (JP:7261 218.00, +3.00, +1.40%) (MZDAY 0.00, 0.00, 0.00%) added 1.4%, Canon Inc. (JP:7751 3,955, +10.00, +0.25%) (CAJ 47.75, -0.82, -1.69%) rose 0.3% and Konica Minolta (JP:4902 894.00, +14.00, +1.59%) (KNCAY 106.26, +2.24, +2.15%) tacked on 1.6%.
Japan’s GDP figures for the July-September quarter provided another boost in Asia, as the annualized figure jumped 3.9% against the median forecast for 2.5% growth. See story on Japanese GDP data
Analysts said the upbeat growth result is somewhat misleading. The rise in consumer spending shown in the quarterly report came in anticipation of the expiry of auto subsidies and an upcoming increase in tobacco taxes.
Still, Phoenix Securities manager Mamoru Nakajo said the data gave institutional investors an excuse to buy equities.
Banks outperformed the market early on because of stellar earnings results and full-year upward revisions from Mizuho Financial Group (MFG 3.01, -0.09, -2.90%) (JP:8411 127.00, 0.00, 0.00%) and Sumitomo Mitsui Financial Group (SMFG 5.97, -0.17, -2.77%) (JP:8316 2,519, +10.00, +0.40%) . However, shares gave back most of the gains, with Mizuho ending unchanged, while SMFG ended 0.4% higher.
Australian stocks ended little changed, as takeover activity and the announcement of a buyback plan by miner BHP Billiton Ltd. (BH 359.63, -9.02, -2.45%) (AU:BHP 44.14, -0.16, -0.36%) helped offset weaker overseas markets.
BHP Billiton fell 0.4% after it abandoned its $39 billion bid for Canadian fertilizer company Potash Corp. of Saskatchewan (POT 138.59, -1.32, -0.94%) and promised to return $4.2 billion to shareholders through a previously suspended buyback program.
