Asia's Stocks Rise, Led by Rally in Japan
A slightly weakening yen, coupled with limited downside in China Mobile (CHL), helped provide support to prices in Asia Tuesday, though trading volumes remained sluggish.
Japan's Nikkei gained the most of the major indices, rising 203 points, or 1.5%, to 13,893.31, after a rebound in financials. In Hong Kong, the Hang Seng added 155 points, or 0.6%, to 24,284.04, while in neighboring China the Shanghai Composite Index rose 11 points, or 0.3%, to 3375.41.
Telco goliath China Mobile, which plunged more than 8% Monday following the long-awaited announcement of domestic Chinese industry restructuring plans, slipped into the red by the end of the afternoon. China Mobile lost 0.2% to HK$114.70, after opening up at HK$116.60. Many market participants remain skeptical about the impact of changes to the sector, however.
"There was nothing new in the announcement made on May 23 [to restructure the telco industry] that the market did not already know," says Marvin Lo, telecom analyst for Daiwa Bank in Hong Kong. "China Mobile's dominant position is likely to remain intact in the post-restructuring era, and it continues to be our top pick of the sector."Market turnover in Hong Kong amounted to HK$54.49 billion, or $7 billion. Among the day's light news flow came the announcement that Walter Kwok has been ousted by his family as chairman and chief executive of real estate giant Sun Hung Kai Properties (SUHJY). Kwok's mother Kwong Siu-hing, who is 79 years old, will take his place at the helm of the Hong Kong developer. Shareholders applauded the management change, and the stock rose 0.9% to HK$126.80.
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