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Asia stocks edge higher on upbeat U.S. economic outlook

Published 03/19/2012, 03:48 AM
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Investing.com - Asian stock markets edged modestly higher on Monday, as growing optimism over the U.S. economy boosted exporters in the region ahead of the release of key U.S. housing data, which is expected to show further evidence of an improving economy.

During late Asian trade, Hong Kong's Hang Seng Index dipped 0.25%, Australia’s ASX/200 Index added 0.35%, while Japan’s Nikkei 225 Index eased up 0.12%.

Positive economic data released last week in the U.S. pointed to further evidence of an improving economy, boosting stocks in Asia. The U.S. is a crucial market for the region's exporters.

Manufacturing activity in New York and Philadelphia rose to multi-month peaks in March, jobless claims matched a four-year low last week and retail sales rose in February.

In Japan, the Nikkei rallied to an eight-and-a-half month intraday high, before profit taking ate in to some gains.  

March is the final month of Japan's fiscal year, and market participants have expected many funds to lock in profits from this year's 20% rally on the Nikkei after dropping more than 13% in April to December.

Japanese equities have been boosted by persistent weakness in the yen, which traded close to an 11-month low against the U.S. dollar. A weaker yen increases the value of overseas income at Japanese companies when repatriated, boosting the outlook for export earnings.

Shares in industrial robot maker Fanuc rose 2% to a record high after Citigroup raised its price target and kept its "buy" rating on the stock.

Mining equipment maker Komatsu advanced 2.9% after Morgan Stanley held a meeting with the construction machinery maker's CFO Miki Fujitsuka, who the bank said revealed some positives for its outlook.

But some profit taking weighed on names like, Sony, which dropped 1%, Canon dipped 0.9%, while Honda retreated 0.6%.

Elsewhere, shares in Hong Kong turned lower towards the end of the trading session, dragged down by weakness in property developers in mainland China.

Government data released on Sunday showed the average property prices fell in February for the fifth straight month. Shares in Agile Property Holdings fell 1.4%, Evergrande Real Estate Group slumped 2.4% and Sun Hung Kai Properties declined 2%.

On the upside, shares in Chinese internet company Tencent rose 1.9%, continuing its recent run of gains after it reported strong fourth quarter earnings last week.

Looking ahead, the outlook for European stock markets was mildly downbeat. The EURO STOXX 50 futures pointed to a loss of 0.2%, France’s CAC 40 futures eased down 0.25%, London’s FTSE 100 futures pointed to a loss of 0.1%, while Germany's DAX futures pointed to a dip of 0.1% at the open.

Later in the day, the euro zone was to release official data on the current account.

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