CANBERA (dpa-AFX) - Asian stocks rose for a fifth consecutive session on Monday and commodities such as copper and crude gained, as strong U.S. manufacturing data and an approval for an austerity plan in Greece helped to boost investor confidence.
The euro eased from one-month highs against the dollar after ratings agency Standard & Poor's said a debt rollover plan for Greece may force the country into a selective default.
Standard & Poor's said that each of the two financing options described in the Federation Bancaire Francaise proposal for rolling over maturing debt of Greece would likely amount to a default under its criteria. The agency said both proposals would involve losses to bondholders and would represent the sale of 'distressed' debt.
Over the weekend, European finance ministers approved the disbursement of the fifth tranche of the current Greek Loan Facility by mid-July.
Japan's Nikkei average climbed above 10000 for the first time in two months before closing a percent higher at 9,965, as upbeat manufacturing data from the U.S. fanned optimism about the world economy. The broader Topix index gained 1.2 percent.
Utility shares rose across the board after Hideo Kishimoto, mayor of Genkai, Saga Prefecture, approved the resumption of two suspended reactors at the Genkai nuclear power plant. Kyushu Electric Power, the operator of the Genkai plant, rallied 2.7 percent, while Tokyo Electric Power jumped 19.8 percent. Among exporters, Honda Motor advanced 3.5 percent and Kyocera closed up 2.8 percent.
Office equipment maker Ricoh fell 2.6 percent after announcing last week its planned acquisition of the Pentax digital camera business of Hoya Corp. Fast Retailing, the operator of the Uniqlo casual clothes shop chain, rose 2.5 percent on expectations for solid same-store sales for June. Bridgestone added 2.8 percent on news that it is raising the prices of truck and bus tires sold in the replacement market.
China's Shanghai Composite index and Hong Kong's Hang Seng rose about 1.7 percent each after a slowdown in China's June services PMI index eased concerns over further monetary tightening steps from Beijing.
According to survey results from the China Federation of Logistics and Purchasing (CFLP), the headline purchasing managers' index dropped to four-month low of 57 in June from 61.9 in May, with a PMI reading above 50 indicating expansion of the sector.
CFLP's manufacturing PMI fell in June, indicating the weakest expansion in factory activity in 28 months, according to survey results released last week. This, along with today's data, adds to concerns that growth has started to ease due to continued policy tightening aimed at staving off inflation.
The Australian market erased early gains to end modestly higher following weaker-than-expected data on both retail sales and building approvals. The benchmark S&P/ASX 200 rose 0.4 percent, while the broader All Ordinaries gained around half a percent. Trading volume was light due to a lack of direction from the U.S. markets, which remain closed on Monday for the Independence Day holiday.
Domestic data showed that retail sales in Australia dropped notably in May, confounding economists expectations for a marginal increase, while the total number of building approvals in Australia plummeted a seasonally adjusted 7.9 percent in May compared to the previous month.
Big miner BHP Billiton rose 0.6 percent, rival Rio Tinto edged up 0.4 percent and Fortescue Metals added 1.4 percent. Among financials, Commonwealth rose 0.3 percent, but NAB shed 0.2 percent and Westpac eased marginally. Retailers posted modest losses, with Woolworths closing down 0.2 percent, Harvey Norman Holding losing 0.8 percent and David Jones falling 0.3 percent. Qantas climbed 6.5 percent and Virgin Blue soared 10.5 percent after Australia's air safety watchdog grounded budget carrier Tiger Airways' Australian operations for a a week.
South Korea's Kospi average closed 0.9 percent higher, lifted by foreign fund buying, after strong U.S. economic data eased fears of weakening demand in the world's largest economy. Kia Motor rose 1.2 percent and Hyundai Motor added 1.7 percent after reporting strong U.S. sales for June.
Hana Financial Group climbed 2.8 percent amid hopes for its deadlocked $4.3 billion takeover of Korea Exchange Bank (KEB) after its banking unit concluded a loan agreement with KEB's majority stakeholder Lone Star. KEB slumped 4.7 percent on news that U.S. buyout fund Lone Star will secure a hefty $466 million dividend payout from its controversial stake in the lender. Among tech firms, Hynix edged up 0.9 percent, Samsung Electronics advanced 2.7 percent, LG Display added a percent and LG Electronics rose 1.3 percent.
New Zealand's benchmark NZX-50 edged up 0.1 percent paring early gains. Charlie's, the soft drink and fruit juice maker, soared almost 54 percent after Asahi, a Japanese beverage company with a $22 billion annual turnover, launched a bid to acquire 100 percent stake in the company. Children's clothing retailer Pumpkin Patch climbed 6.6 percent in the wake of its business restructuring plan.
Freightways, the express package company, rose 3.4 percent, fast-food company Restaurant Brand gained 2.8 percent and whiteware manufacturer Fisher & Paykel Appliances Holdings closed up 1.7 percent. Property stocks led the decliners, with AMP NZ Office and Argosy Property Trust falling about 1.2 percent each, while Goodman Property Trust lost a percent and Kiwi Income Property Trust shed 0.9 percent.
Elsewhere, India's benchmark Sensex was last trading up half a percent, Indonesia's Jakarta Composite rose 0.7 percent, Singapore's Straits Times edged up 0.2 percent and the Taiwan Weighted added 0.4 percent, while Malaysia's KLSE eased marginally.
U.S. stocks rose sharply on Friday to notch their biggest weekly gain in nearly two years, after an upbeat report on manufacturing activity helped offset disappointing reports on construction spending and consumer sentiment. The Dow and the S&P 500 rose 1.4 percent, while the Nasdaq added 1.5 percent.
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© 2011 AFX News
