Asian markets mostly up, Tokyo extends gains

HONG KONG: Asian markets were mostly higher on Wednesday, with Tokyo supported by the weak yen, while Shanghai slipped following a rare trade deficit for China in March.

On Wall Street the Dow index provided support as it climbed to yet another record on hopes for the US economy and optimism about the January-March earnings season that started this week.

Tokyo rose 0.73 percent, or 95.78 points, to 13,288.13, while Seoul gained 0.77 percent, or 14.84 points, to 1,935.58 but Sydney was 0.18 percent lower, giving up 8.8 points to 4,968.0.

In the afternoon Hong Kong was flat and Shanghai eased 0.48 percent.

China's customs agency said Wednesday exports climbed a below forecast 10.0 percent last month, and imports jumped a bigger-than-expected 14.1 percent, while the country saw a trade deficit of $880 million. Economists had tipped a surplus of $14.7 billion.

The news comes a day after officials said inflation had come in below estimates, which analysts said indicates ongoing weakness in the world's number two economy, still struggling to recover from slower growth last year.

Dongxing Securities analyst Sun Zheng said the data show "external demand still remains weak, which is widely known to the market".

But he told Dow Jones Newswires that "investors will pay more attention to indicators that reflect companies' business operations, profitability and revenue growth".

In Tokyo the Nikkei continued its upward trend, having piled on around 10 percent since the Bank of Japan's stimulus package last week, which sent the yen tumbling against the dollar to levels not seen since May 2009.

In afternoon Tokyo trade the greenback bought 99.15 yen, while the euro was at 129.67 yen, against 99.18 and 129.73 in New York Tuesday.

National Australia Bank said in a note: "Levels above 100 yen continue to look like only a matter of time away."

The euro bought $1.3075, from $1.3081 in New York.

There was also some cheer from New York, where the Dow rose 0.41 percent to end at another record high, while the S&P 500 jumped 0.35 percent and the Nasdaq added 0.48 percent.

Investors have an eye on the Korean peninsula, where the North continues its stand-off with the South and the United States.

On Tuesday it told foreigners to leave Seoul and warned of a thermo-nuclear war while moving two mid-range missiles to the east coast for an expected launch.

The South Korea-US Combined Forces Command also raised its "Watchcon" status from 3 to 2 reflecting indications of a "vital threat", Yonhap news agency said, citing a senior military official.

Oil prices fell, with New York's main contract, light sweet crude for delivery in May, dropping 30 cents to $93.90 a barrel in the afternoon and Brent North Sea crude for May gaining 14 cents to $106.37.

Gold was at $1,586.00 an ounce at 0605 GMT compared with $1,571.97 late on Tuesday.

In other markets:

Taipei rose 0.31 percent, or 24.26 points, to 7,752.80.

Taiwan Semiconductor Manufacturing Co. was 0.82 percent higher at Tw$98.3 while leading chip design house MediaTek added 0.86 percent to Tw$352.5.

Wellington added 0.57 percent, or 24.86 points, to 4,420.06.

Fletcher Building was up 0.82 percent at NZ$8.57 and Telecom Corp rose 1.67 percent to NZ$2.46. (AFP)