Most Asia stocks fall as yen drags Japan before H.K. Open

LONDON. April 4. KAZINFORM Asian stocks rose for a third day as signs of strength in the world's two biggest economies, the U.S. and China, bolstered confidence in the global recovery. Japanese shares fell as the yen's appreciation damped the earnings outlook for the country's exporters.

Samsung Electronics Co. (005930) , South Korea's biggest exporter of consumer electronics, rose 2.8 percent in Seoul after the Institute for Supply Management's U.S. factory index rose more than forecast. Tencent Holdings Ltd., China's biggest Internet company, advanced 2.9 percent after a gauge of activity at mainland service companies rose to a six-month high. Electronics maker Kyocera Corp. and other Japanese exporters fell after the yen rose to a three-week high against the dollar, Bloomberg reports.

The MSCI Asia Pacific Index rose 0.19 point, or 0.2 percent, to 127.35 as of 9:37 a.m. in Tokyo, with more than four stocks falling for every three that climbed.

The MSCI Asia Pacific Index added 0.2 percent to 127.46 as of 7:52 p.m. in Tokyo, with about the same number of stocks rising as falling. The measure gained 0.4 percent yesterday, extending its best quarterly rally since the period ending Sept. 30, 2010.

"Judging from the comments of business people in the ISM report, the earnings outlook for U.S. companies may improve on the back of strong domestic demand," said Hitoshi Asaoka, a Tokyo-based senior strategist at Mizuho Trust & Banking Co. "While the Chinese market is closed, people are waiting for the Fed minutes and jobs data to gauge the possibility of additional monetary easing."

U.S., China

Asia's benchmark equity gauge has risen 12 percent this year amid optimism the U.S. economy will weather Europe 's debt crisis and monetary easing in Japan , China and Europe will spur growth. Gains slowed after China last month cut its target for economic growth as it seeks to cool the property market and become less dependent on exports.

Korea's Kospi Index gained 1 percent. Hyundai Motor Co. gained 6.3 percent to 255,000 won after reporting sales increased 18 percent last month. Affiliate Kia Motors Corp. climbed 3.4 percent to 78,300 won.

Australia's S&P/ASX 200 Index (AS51) added 0.2 percent as the nation's central bank kept the benchmark interest rate unchanged. Japan's Nikkei 225 Stock Average dropped 0.6 percent. The MSCI Asia Pacific excluding Japan Index gained 0.8 percent.

Hong Kong's Hang Seng Index (HSI) rose 1.3 percent before a public holiday tomorrow in the city. Trading volume in Hong Kong was 13 percent below the 30-day average as markets in China were closed for a holiday and before U.S. economic reports this week.

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