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Asian Stocks Rally, with China and Japan Leading Gains

Posted
9/9/2013 1:19:00 PM
By: MT Newswires
Referenced Stocks:BHP;COGO;HSOL

Asian stocks gained after Tokyo won its bid to host the 2020 Olympic games, and China posted strong data.

China's exports rose 7.2% from a year earlier, the General Administration of Customs said over the weekend. That exceeded the 5.5% median estimate of analysts surveyed by Bloomberg News. Consumer prices rose 2.6%, in line with economists' forecast and below a government target, leaving room for extra stimulus if needed.

Chinese banks also found support from a report late Friday from the Economic Observer saying that some banks were to be allowed to issue preferred shares on a trial basis - non-tradable stock that doesn't come with voting rights but has a fixed dividend payout. Banks also rallied on speculation they will benefit from a broadened free trade zone, the WSJ reports.

Japan's economy expanded a revised 3.8% in Q2 on an annualized basis, up from an original estimate of 2.6%.

In Australia, Tony Abbott's Liberal-National coalition won the country's weekend election and is heading for the biggest parliamentary majority since at least 2004, ushering in a government pledging to abolish a carbon price and mining tax. BHP Billiton ( BHP ) gained on the win.

The number of Australian home-loan approvals rose a seasonally adjusted 2.4% in July from June, the Bureau of Statistics said. Economists surveyed ahead of the announcement had expected a rise of 2.0%.

In ADR news, Hanwha SolarOne ( HSOL ) said its Q2 loss narrowed to $0.32 per American depository share from a loss of $0.43 in Q1. The Non-GAAP net loss per ADS was $0.25 compared to the average Capital IQ estimate for a loss of $0.32. Total revenues were at 192.7 million compared to $179.2 million in Q1. In Renminbi amounts on a year-over-year basis, the net loss per RMB narrowed to RMB1.96 from a loss of RMB3.16 a year ago while revenues rose to RMB1.18 billion from RMB1.07 billion.

Cogo Group ( COGO ) said a plan to sell about 30% of its assets to founder and CEO Jeffrey Kang for about $80 million is "progressing smoothly."

The Nikkei ended up 2.5% at 14205.23, the Hang Seng up 0.6% at 22750.65 and the Straits Times up 1.31% at 3,088.20. The Shanghai Composite rose 3.4% to 2212.52.