Chinese Shares Lead Asian Markets Higher

(RTTNews) - Asian stocks rose broadly on Monday despite weak cues from Wall Street on Friday. A weaker yen and encouraging trade figures underpinned investor sentiment in Japan and higher iron ore prices boosted resource stocks in Australia, while Chinese shares rallied for a fifth straight day after Beijing invited private players to boost infrastructure investment and help stabilize growth. The South Korean and Hong Kong markets were closed for the Buddha's Birthday holiday.

Chinese shares hit a fresh seven-year high, with infrastructure and transport stocks pacing the gainers, after the National Development and Reform Commission (NDRC) published approvals for 1043 projects worth 1.97 trillion yuan ($317.75 billion) to be built by private players. The benchmark Shanghai Composite index jumped 156.20 points or 3.35 percent to 4,813.80.

Japanese shares extended gains for the seventh straight day, as the yen weakened and data showed a smaller than expected trade deficit. Japan fell back into a trade deficit in April after the first surplus in almost three years in March, but the result was much better than forecast, thanks to stronger exporters and lower energy costs. The country posted a merchandise trade deficit of 53.44 billion yen in April, beating expectations for a deficit of 386.8 billion yen following the upwardly revised 50 billion yen surplus in March.

Exports climbed 8 percent from a year earlier, up for an eighth straight month, while imports fell more than expected, down 4.2 percent year-over-year. The benchmark Nikkei average closed up 149.36 points or 0.74 percent at 20,413.77, its highest level since April 2000. The broader Topix index gained 11.30 points or 0.69 percent to finish at 1, 659.15.

Shares of Japan Tobacco rose 1.1 percent in the wake of media reports that Suntory Beverage & Food plans to buy its beverage vending machine business for around 150 billion yen. Mitsubishi Corp gained 1.5 percent and Tokyo Electric Power climbed 6.7 percent after they won a tender to construct a large power plant in Qatar. Yamada Denki added 1.7 percent. The home electronics chain said it plans to close about 40 loss-making stores by the end of May.

Australian shares rose sharply, led by gains in banks and miners as investors went bargain hunting in heavily-battered stocks. The benchmark S&P/ASX 200 index closed up 56.7 points or 1 percent at 5,721.5. Mining giant BHP Billiton rose 0.8 percent, Rio Tinto gained 1.6 percent and smaller rival Fortescue Metals Group rallied 2.8 percent after iron ore prices jumped nearly 3.5 percent over the weekend to finish just under $60 a ton. Shares of Evolution Mining were in a trading halt after the gold producer said it had agreed to buy Barrick's Cowal mine in NSW under a $US550 million deal.

Shares of Independence Group NL plunged 12 percent, while those of Sirius Resources NL soared over 20 percent. Independence Group has agreed to buy Sirius for about A$1.8 billion ($1.4 billion) in a cash-and-stock deal to help create a $2.7 billion mining group. In the oil space, Oil Search, Woodside Petroleum and Santos closed up between 0.7 percent and 2.2 percent. Oil prices edged higher in Asian deals after falling last week on concerns about a resurgent dollar and a supply glut.

The big four banks rose between 0.8 percent and 1.2 percent after recent sharp losses on concerns that higher capital requirements may depress earnings. Telecommunications giant Telstra rose 1.3 percent and blood products supplier CSL advanced 1.8 percent. Workplace provider Skilled Group jumped almost 12 percent after resuming merger talks with rival Programmed Maintenance Services.

New Zealand shares rose, led by Contact Energy after the energy retailer said it had ditched plans for now to invest in offshore geothermal energy projects in favor of paying a 50c a share special dividend to shareholders. While Contact Energy shares soared 11.4 percent to $6.18, the benchmark NZX-50 index gained 18.96 points or 0.33 percent to finish at 5,794.98. Nuplex Industries dropped 1.3 percent after forecasting a 64 percent gain in sales in Asia by 2018.

Elsewhere, India's Sensex was down 1 percent as fears about earlier-than-expected U.S. rate hikes prompted traders to book some profits at higher levels after last week's rally. Indonesia's Jakarta Composite index was moving down half a percent and Malaysia's KLSE Composite index was losing 1.2 percent, while the Taiwan Weighted average edged up marginally and Singapore's Straits Times index was up 0.3 percent.

U.S. stocks ended a choppy session mostly lower on Friday after Federal Reserve Chairwoman Janel Yellen hinted that it would be appropriate to raise interest rates at some point this year, as long as economic activity picks up. Also, rising shelter and medical care costs boosted underlying inflation pressures, the Labor Department reported, sending the dollar higher and pushing government bond yields up. The Dow slid 0.3 percent, the S&P 500 eased 0.2 percent and the tech-heavy Nasdaq slipped marginally.