13.08.201302:52:46UTC+00Japan stocks climb, as Hong Kong extends advances

Japanese stocks jumped Tuesday to lead Asian markets higher, with gains spread across sectors on a weakened yen and a report the government is considering a cut in corporate taxes.

The Nikkei Stock Average spiked 1.5%, while elsewhere in Asia, South Korea’s Kospi traded 0.6% more, and Australia’s S&P/ASX 200 slightly advance with 0.1%.

The Shanghai Composite inched up 0.1% in choppy trading after rallying 2.4% in the previous session, while Hong Kong’s Hang Seng Index bolstered 0.4%, on a path to a fourth straight day of advances.

“Investors are digesting the deluge of July activity data late last week, the main highlight of which was acceleration in exports, industrial production and M2 [money supply growth]. These are hopeful signs of economic recovery in the second half of the year,” said ING Financial Markets economist Prakash Sakpal.

The advance came in spite of weak overnight cues from Wall Street, where the Dow Jones Industrial Average and the Standard & Poor’s 500 Index closed lower Monday, though the Nasdaq Composite faced a slight gain.

“Investors seem to be weighing the positives of an improving U.S. economy against the negatives of a weak global economy and the potential for the [Federal Reserve] to taper its bond-purchase program this fall,” said Wells Fargo Advisors chief macro strategist Gary Thayer.

The solid gains in Tokyo also got help from a report in the Nikkei newspaper Tuesday that Prime Minister Shinzo Abe may propose a reduction in corporate taxes if he decides in favor implementing a planned increase in the consumption tax.

Among major movers in Japan, shares of Fuji Heavy Industries Ltd. surged 3.4%, Softbank Corp. boosted 4.3%, Japan Tobacco Inc. uptrend 2.7%, Tokyo Electron Ltd. step 1.3% up and Mizuho Financial Group Inc. rose 1.5%.

Data released earlier in the day showed Japan’s core machinery orders subside 2.7% in June, a milder decrease than expected.

In China, property shares added to their recent gains, following a Reuters report that the eastern city of Wenzhou has become the first to ease restrictions on real-estate purchases.

Shares of China Overseas Land & Investment Ltd. soared 1%, and China Resources Land Ltd. skyrocketed 3.1%.

In Sydney, shares of Stockland exchanged 2.5% lower after the developer and real-estate investor posted a 79% drop in full-year profit.