China Shares Rise Following Export Data

By Daniel Inman 

        HONG KONG--Japanese stocks picked up Thursday from sharp losses in the previous session, while Hong Kong stocks also rose after better than expected export numbers from China.
        The Hang Seng Index gained 0.7% and the Hang Seng China Enterprises Index was up 1.5% after data showed China's exports in April grew 0.9% from a year earlier. In mainland China, the Shanghai Composite rose by 0.2%.
        China's trade growth has been weak in recent months due to distortion caused by widespread over-invoicing by exporters early last year--a practice that overstated performance until regulators started to clamp down on the activity in May 2013. The increase in exports in April marks a turnaround from the 6.6% drop in exports in March.
        In Japan, the Nikkei was up 1.1%, regaining ground after falling 2.9% Wednesday -- its worst session since March.
        Japanese stocks were helped by some stability in the yen, which strengthened over the long holiday weekend. There was no trading in Tokyo on Monday and Tuesday.
        The dollar, which gained 0.2% against the yen overnight, was a touch lower in Asia. It was last at Yen101.87, against Yen101.90 late Wednesday in New York. The greenback was helped by U.S. Federal Reserve Chairwoman Janet Yellen saying at a testimony before Congress that the U.S. economy was on track for solid growth.
        But analysts said the effect of the currency movement was limited. "Currency markets aren't cooperating to create a strong buying appetite for stocks, even with valuation levels now very cheap," said Takashi Matsumoto, director at Okasan Securities.
        More broadly the region was mostly recovering from Wednesday's negative session, with Australia's S&P/ASX 200 adding 0.8% and Singapore's Straits Times Index up 0.2%. South Korea's Kospi was up 0.2%.
        The Australian dollar received a boost from strong employment data. The number of people employed rose 14,200 in April--more than an expected 9,000. The Aussie was last US$0.9365 from US$0.9328 late Wednesday in New York.
        In corporate news, shares in National Australia Bank were last up 0.7% in Sydney, recovering from a fall at the start of the day after the Melbourne-based company's first-half profit missed expectations. They turned positive as the market focused on a fall in its bad debt charges as well as a recovery in the bank's U.K. operations.
        Write to Daniel Inman at daniel.inman@wsj.com
        (END) Dow Jones Newswires

        May 07, 2014 23:02 ET (03:02 GMT)