The Bank of Japan said the economy is recovering albeit slowly. Australia saw gains, boosted by positive trade data with top partner China. Australia's import and export data was much higher than expected.
Chuo-ku, Tokyo -- (SBWIRE) -- 09/30/2013 -- Despite a statement released from the Bank of Japan saying the nation's economy is “recovering moderately,” the Nikkei Stock Average fell 1.6% after a 4% drop in the previous day’s trading session. Analysts at CVS Group attribute the loss to a stronger yen. As the yen's value increases it hurts Japanese companies that depend on income from overseas. The real estate company Mitsui Fudosan gained 1.5% after reporting a 8.3% rise in first quarter profits from a solid performance in their condominium sales and office leasing businesses. Kubota Corp. a machinery manufacturer rose 1.6% after they reported a 50% gain in profit from a weaker yen earlier in the year.
The Australian S&P/ASX 200 climbed 1.1%, which CVS Group analysts attribute to a stabilizing in China´s imports after a downturn. China is Australia's biggest trading partner. Exports from Australia rose 5.1% beating expectations of 2.8%. Imports were also up 10.9% shattering the expected 1.3% increase. Mining companies were among the nation's best performers with Rio Tinto Ltd. up 1.5% and BHP Billiton Ltd. gaining 1.2%.
In China the Shanghai Composite fell marginally losing 0.1% to close the day at 2044.9 and in Hong Kong the Hang Seng Index gained 0.3%. Resource firms performed well in Hong Kong, with China Resources Enterprise Ltd. up 3.5%, PetroChina Co. Ltd. gained 2.59% and China Resources Land Ltd rose 2.56%
In Taiwan the Taiex lost 0.2%. PC manufacturer Acer Inc. dropped 4% after posting a net loss in the second quarter, due to lower sales and larger marketing and chip costs.