By Chao Deng
Stocks in Japan and Australia slipped Tuesday, with i nvestors
worrying about a standoff between Greece and its creditors, but
China shares gained after inflation there slipped to a five-year
low.
The Nikkei Stock Average ended down 0.3% at 17,652.68 and
Australia's S&P/ASX 200 fell 0.3% to 5800.6, tracking losses in
the U.S. and Europe overnight.
"More volatility may be ahead due to philosophical differences
over how to service Greek debt, but thus far, domestic stock buying
by the Bank of Japan as well as pension and other funds is
stabilizing the market, and holding steep selloffs to a minimum,"
said Daiwa Securities senior strategist Tsuyoshi Nomaguchi. "That
is not likely to end any time soon."
Greece's government said Monday that it plans to cancel some of
its debt-reduction and economic-reform measures that are key
conditions for international aid, putting the country at greater
risk of default and reviving fears it will exit the eurozone.
"Worries over Greece are less of a concern to Japan than the
fallout on currency markets and overall 'risk-on/off' investor
sentiment, but at least the issue over the debt situation is set to
find some clarity," said Tatsunori Kawai, chief strategist at
Kabu.com Securities, noting a coming European Union summit.
As of the close of trading at 0600 GMT in Japan, the dollar was
changing hands at Yen118.48 against the Japanese yen, down from the
prior day's Yen118.81 mark--a negative for exporters who generally
earn higher profits from a stronger dollar.
In Shanghai, stocks ended up 1.5% at 3141.59, after Chinese data
showed consumer inflation in January rose 0.8% from a year earlier,
below expectations, and slowing from a 1.5% year-over-year rise in
December. Low inflation is expected to give the central bank more
leeway for policy easing, often a boon for stocks.
The Hang Seng Index was roughly flat, but Australian mining
firms received a boost from the China data. BHP Billiton, the
world's biggest miner, rose 0.5% to A$31.39, while Rio Tinto gained
0.7% to A$60.70. Australia's largest trading partner is China.
Australia's corporate-earnings reporting season kicks off in
earnest this week, with popular yield plays such as Commonwealth
Bank of Australia, blood products maker CSL and telecoms company
Telstra (TLS.AU) due to unveil results.
Japan's second-largest auto maker, Nissan Motor Co. Ltd., added
3.8% after it raised its full-year profit forecast Monday, helped
by a weak yen and strong U.S. sales. Nissan's sales in the U.S.
pulled within 154,000 vehicles of Honda's in 2014, narrowing the
gap to nearly half of what it was a year ago.
--Vera Sprothen and Bradford Frischkorn contributed to this
article.
Write to Chao Deng at Chao.Deng@wsj.com
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