Asia stocks mostly higher after G-20 meet

HONG KONG (MarketWatch) � Asian markets ended mostly higher Monday, with a slide in the yen after the weekend Group of 20 meeting boosting Japanese equities, although Chinese stocks bucked the trend as trading resumed after a week-long holiday.

Japan�s Nikkei Stock Average JP:100000018 �jumped 2.1%, Australia�s S&P/ASX 200 index AU:XJO �rose 0.6%, South Korea�s Kospi KR:SEU �ended fractionally higher and Hong Kong�s Hang Seng Index HK:HSI �slipped 0.3%.

Taiwan�s Taiex XX:Y9999 �gained 0.5% and China�s Shanghai Composite Index CN:000001 fell 0.5% as investors in both markets returned after last week�s Lunar New Year holidays.

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�Liquidity [has been] thinner than usual owing to Family Day in Canada and Presidents Day in the U.S., despite China markets returning from the week long Lunar New Year celebrations,� said Sue Trinh, a strategist at RBC Capital Markets.

U.S. stocks had ended mostly lower Friday, with investors pausing ahead of the long holiday weekend. Read: S&P 500 up for 7th week; Dow down for 2nd.

Japanese stocks rallied after finance ministers and central bankers from the Group of 20 major economies, over the weekend, chose not to mention Japan as intentionally weakening its currency at the expense of other regions, as some had feared. Read: G-20 moving against �competitive devaluation�

Japan�s recent aggressive rhetoric and policies have helped fuel a 15% advance for the dollar against the yen over the last three months, leading to corresponding gains for the Japanese stock market.

�Ultimately [the G-20] did not target Japanese FX policy,� said Cr�dit Agricole strategists. �The lack of specificity will mean that the G-20 statement will allow further unobstructed Japanese yen weakness in the months ahead.�

Exporters were broadly higher in Tokyo after the currency moves, with Subaru-maker Fuji Heavy Industries Ltd. JP:7270 � FUJHF �gaining 2.2%, Toshiba Corp. JP:6502 TOSYY �adding 2.5%, and Bridgestone Corp. JP:5108 �BRDCF �rising 2.8%.

After the close of Monday trading, Bridgestone posted net profit more than double its year-earlier earnings.

On Monday, the dollar USDJPY �bought �93.97, up from �93.52 in late North American trading Friday, and almost 2 yen higher than Friday�s intraday dollar low of �92.19. Read Currencies column on yen�s slide against the euro and the dollar.

Reuters

Among Japan�s three �megabanks,� Mizuho Financial Group Inc. JP:8411 �MFG �jumped 4.1%, Sumitomo Mitsui Financial Group Inc. JP:8316 � SMFG �soared 5% and Mitsubishi UFJ Financial Group Inc. JP:8306 �MTU �advanced 4.9% amid an improved economic outlook.

In the property sector, Mitsui Fudosan Co. JP:8801 � MTSFF �climbed 3.8%, while Mitsubishi Estate Co. JP:8802 �MITEF rose 4%.

However, South Korean exporters felt the effect of more yen weakness, especially in the auto sector, where Kia Motors Corp. KR:000270 KIMTF �lost 2.4%, and Hyundai Motor Co. KR:005380 �HYMTF �fell 1.9%.

Earnings gave the Australian market a lift. BlueScope Steel Ltd. AU:BSL BLSFY �surged 15.4% after the steel maker reported a smaller fiscal first-half loss. Read: BlueScope net loss shrinks after restructure.

Last week, earnings helped Australia�s benchmark index move over the 5,000 level, making progress toward a four-and-a-half year high. The index is now trading back at levels seen just before the collapse of Lehman Brothers in September 2008. Read: Australia�s benchmark index vaults over 5,000.

Resource stocks took a hit in Hong Kong, with Aluminum Corp. of China Ltd. HK:2600 �ACH , also known as Chalco, down 1.7% as base-metal prices lost ground on the London Metal Exchange, while energy major PetroChina Co. HK:857 �PTR �fell 1.1%.

In mainland Chinese trading, Chalco shares were down 0.9%, while Jiangxi Copper Co. CN:600362 �fell 3.8%.

Property firms were weak as well, with Gemdale Corp. CN:600383 tumbling 5.2% in Shanghai, and larger rival China Vanke Co. CN:000002 �losing 2.7% in Shenzhen.