Asia's Stocks Rise, Led by Rally in Japan
05/27/08 - 10:43 AM EDT
Daniel M. Harrison
E-commerce giant Alibaba.com(ALBCF Quote - Cramer on ALBCF - Stock Picks) regained ground after Monday's dip, when the stock fell to a one-month low intraday. Alibaba rose 0.8% to HK$14.42.
Commodities remained strong in Asian trading, propelled by high fuel costs. In Singapore, oil rose 0.8% to $133.20 a barrel, while gold settled back at $926.95 an ounce during the afternoon, after reaching $931.05 earlier in the day. Hong Kong-listed Chinese gold miners mostly continued their surge upward. Lingbao Gold(LGBOF Quote - Cramer on LGBOF - Stock Picks) gained 1.9% to HK$3.82, and Zijin Mining(ZIJMF Quote - Cramer on ZIJMF - Stock Picks) rose 1.2% to HK$7.79. Despite the recent rally in commodity prices, some analysts in Asia say they may have run their course in terms of price gains. "An upward shift in yield curves would hit the commodity markets hardest given the lack of income support of this asset class," says Sean Darby, chief Asia strategist at Nomura Bank in Hong Kong. "We are closing our commodity inflation protection basket, since it is at risk of becoming a victim of its own success as monetary policy is tightened." In Japan, the dollar was bought aggressively vs. the Japanese currency in the aftermath of the market close. The yen was recently at 104.26, down from 103.39 in the Asian market. Notes published by currency strategists Tuesday indicated that the dollar may be set for a big rally in U.S. trading. Japanese financials leaped on bargain buying, after heavy selling the previous week. Mizuho Financial(MFG Quote - Cramer on MFG - Stock Picks) led the pack, up 4.1%, at 21,000 yen. Among exporters, Canon(CAJ Quote - Cramer on CAJ - Stock Picks) added 1.9% to 5370 yen, and Nintendo(NTDOY Quote - Cramer on NTDOY - Stock Picks) continued its climb on the back of anticipation over the Wii Fit. Nintendo gained 0.5% to 59,200 yen. Other Asian markets were mostly stronger. South Korea's Kospi rose 1.4% to 1825.23, and Taiwan's Taiex advanced 0.8% to 8778.39. In India, the Bombay Sensitive Index fell at the close, losing 0.5% to 16,275.59.Be sure to check out the Far East Portfolio at Stockpickr.com to find out which Indian and Chinese companies are making big moves and announcing major news.
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