Friday, November 30, 2012

Asian Shares Up Modestly on Greece

Most Asian markets gained Monday after Greek lawmakers approved austerity measures required to secure international bailout funds and avert a likely default.

Japan's Nikkei Stock Average closed 0.6% higher at 8999.18, and Australia's S&P/ASX 200 index advanced 0.9% to 4285.10, both notching their first gains in three sessions. South Korea's Kospi added 0.6% to 2005.74, its fifth gain in six sessions.

Hong Kong's Hang Seng Index rose 0.5% to 20887.40, while China's Shanghai Composite Index slipped fractionally to 2351.85, snapping a three-session winning streak, as property stocks were sold on signs that Beijing remains concerned about the sector. The Bombay Stock Exchange's Sensitive Index added 0.1% to 17772.84.

News that Greek lawmakers approved a package of austerity measures, which international backers had demanded before signing off on €130 billion ($176.6 billion) worth of fresh aid, triggered fresh gains in Asia.

The vote came amid violent protests in Athens against the latest round of deep spending cuts and public-sector job layoffs.

Some exporters with relatively large exposure to Europe gained. In Tokyo, Mazda Motor put on 1.4%, and Mitsubishi Motors added 2.1%, while Esprit Holdings, whose biggest market is Europe, climbed 4.5% in Hong Kong.

Softbank rallied 3.5% in Tokyo after a Saturday Nikkei report that the mobile carrier appears to have taken the lead in the race to access the 900MHz spectrum to be allocated by the Communications Ministry.

Fanuc added 2.2% following a Sunday Nikkei report that the firm plans to build new domestic plants this year to double the production of its machine tools to 5,000 units a month.

News that the eastern Chinese city of Wuhu reversed plans to ease home-buying restrictions hit mainland Chinese property plays, as the move appeared to signal Beijing would continue efforts to cool the real-estate market.

In Hong Kong, Evergrande Real Estate Group plunged 6.9%, Agile Property Holdings skidded 6.6%, China Resources Land slid 5.8% and China Overseas Land & Investment Ltd. dropped 4.8%.

In Shanghai, Gemdale fell 2.9%, and Poly Real Estate Group lost 3.1%.

Most major exporter shares did well in Seoul, as Samsung Electronics gained 2%, while Kia Motors jumped 3.6%, and LG Display climbed 2.6%.

Banks advanced in Sydney. Australia & New Zealand Banking Group rose 1.6% after announcing it would cut 1,000 jobs in Australia.

Shares in Leighton Holdings fell 2% as the construction firm issued what analysts said was disappointing guidance for the current calendar year. In addition, Australian federal police launched an investigation after it notified authorities of a possible illegal payment by one of its subsidiaries linked to work expanding Iraq's crude oil export facilities.

In Mumbai, State Bank of India fell 2%. While the lender's quarterly net profit beat market expectations, provisions for future loan losses nearly doubled, raising concerns over the quality of its assets.

Write to Sarah Turner at sarah.turner@dowjones.com

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