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2013.04.1102:27:05UTC+00Asian stocks records good gains, but Korea back down

 

Most Asian markets advance Thursday as a record finish for key U.S. indexes and hopes for Japanese central-bank easing lifted sentiment, while Chinese stocks surged after a boost in bank lending and assumptions for lesser corporate taxes.

The Nikkei Stock Average moved a notch at 0.8%, improving further after closing Wednesday at its strongest state since August 2008. The standard stayed on course for its sixth higher finish in seven sessions, with the U.S. dollar remaining just short of the key ¥100 level.

“Aggressive easing by the Bank of Japan has been rapidly priced by global rates markets, as investors search for yield. However, global equities are only starting to price the [Bank of Japan] actions as ‘risk on,’” said Barclays analyst Guillermo Felices

“The current environment remains pro-equities, and even if differentiation across regions and sectors may persist, we expect global equities to rally further,” Felices said.

Elsewhere, Australia’s S&P/ASX 200 bolstered 0.6%, Hong Kong’s Hang Seng Index acquired 0.7%, and the Shanghai Composite move a bit with 0.1%.

South Korea’s Kospi defied the broad Asian rally, skidding 0.1% after the Bank of Korea surprised markets by abstaining from a widely expected interest-rate slash

The broad winnings in Asia came after the Dow Jones Industrial Average and the S&P 500 both ended at record levels overnight on Wall Street.

In Tokyo, the rally was spread across sectors, with exporters, financials and industrial shares again among the gainers.

Shares of Mazda Motor Corp. surged 2%, Mitsubishi Heavy Industries Ltd. climbed 5.9%, and Nomura Holdings Inc. jumped 5%

Sharp Corp. boosted 7.2% after a Nikkei news report that the company will post an October-March managing profit well above predictions, thanks to payroll cuts and growing number of sales of LCD panels.

The winnings in Hong Kong and Shanghai came after data issued by the People’s Bank of China displayed the country’s monetary institutions extended 1.06 trillion yuan ($171 billion) credit in March, sharply greater than the 620 billion loans they made in February.

Hopes for tax reforms also helped market sentiment, after the State Council — China’s cabinet — on Wednesday concluded to implement nationwide a pilot program that replaces a tax on overall sales with a value-added tax, Xinhua news reported. The move is assumed to lessen the tax burden on businesses.

Shares of Aluminum Corp. of China Ltd.  gained 3%, Bank of Communications Co. advanced 2.1% and personal-hygiene products maker Hengan International Group Co. increased 3.1% to lead a broad-based rally in Hong Kong.

In Shanghai, the airline, automobile and construction-related sectors were in the lead. Shares of Dongfeng Automobile Co. traded 1% higher, while Anhui Conch Cement Co. bolstered 3.1%.

China Eastern Airlines Corp. jumped 2% after receiving the industry regulator’s go signal to increase funds by issuing new yuan-denominated shares.

In Seoul, construction-related and industrial stocks suffered deep declines after the Bank of Korea’s decision. Hyundai Engineering & Construction Co. relinquished 6.8%, Kumho Industrial Co. surrendered 4.1% and auto giant Hyundai Motor Co. traded 3% lower.

Australian shares pared some of their early wins after unexpectedly weak jobs data

Banking and retailer shares came off their early highs, while miners were broadly lower. Commonwealth Bank of Australia and Woolworths Ltd. advance 1% each, with Woolworth’s getting an extra push from a quarterly gain in same-store sales.

But BHP Billiton Ltd. shed 0.5%, reversing some of Wednesday’s strong gains.

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