(MENAFN- Gulf Times) Tokyo stocks chalked up a 12th straight gain yesterday, their best run in more than a quarter of a century, while Shanghai and Hong Kong rebounded as data indicated a pick-up in Chinese manufacturing.
The euro edged down as Greece's bailout reform talks plod on without agreement in sight despite this week's deadline to repay some debts € fuelling fears of a default that could see it leave the eurozone.
Tokyo recovered from initial losses to end marginally higher, adding 6.72 points, at 20,569.87. The 12 days of gains marked the best rally since 1988 at the height of Japan's stock market bubble.
Shanghai, which plunged almost 7% over Thursday and Friday, jumped 4.71%, or 216.99 points, to end at 4,828.74. Hong Kong added 0.63%, or 172.97 points, to 27,597.16. Shares in Huatai Securities Co climbed 4% in their Hong Kong debut yesterday, as investors bet China's biggest broker by trading volume would continue to benefit from a boom in the country's stock markets.
But Sydney dropped 0.72%, or 41.8 points, to close at 5,735.4 and Seoul fell 0.59%, or 12.43 points, to 2,102.37.
Singapore, Wellington and Bangkok were closed for public holidays.
In Tokyo the Nikkei reversed initial losses caused by profit-taking as investors bet on the Bank of Japan announcing more monetary easing, while the yen sits around 12-year lows against the dollar.
Yesterday the dollar was at 124.20 yen in Tokyo against 124.12 yen late Friday in New York. The greenback briefly touched 124.46 last Thursday, the highest level since December 2002.
"Today's (stocks) gain suggests that the market is seeing Japan's corporate performance as favourable," said Kenzaburo Suwa, strategist at Okasan Securities in Tokyo.
Japanese dealers brushed off Wall Street losses Friday after data showed the world's biggest economy shrank 0.7% in the first three months of the year as the country was hit by severely cold weather.
In China the official Purchasing Managers' Index (PMI) of manufacturing activity came in at 50.2 for May, the strongest since November and the third consecutive month of expansion.
The reading, which is above the 50 point mark that separates growth from contraction, also showed demand increasing.
Chinese investors returned to buying yesterday after the Shanghai index plunged almost 7% over Thursday and Friday in response to a tightening of rules for margin trading.
The market has surged about 120% over the past year on hopes Beijing will unveil a series of easing measures to boost the economy.
"The stock market has consolidated and is likely to grow at a slower pace rather than just straight up," said Wang Zheng, the Shanghai-based chief investment officer at Jingxi Investment Management Co.
"The stabilisation of the economy indicated by the PMI data has also helped sentiment."
The euro slipped to $1.0906 and 135.42 yen from $1.0991 and 136.42 yen.
Dealers are keeping tabs on the long-running talks between Greece and its creditors as they struggle to find an agreement on overhauling its bailout terms.
However, there are worries Athens will not achieve a deal that will unlock the billions of euros it needs for a debt repayment on June 5.
Prime Minister Alexis Tsipras on Sunday attacked creditors for insisting on
what he described as absurd reforms that had only delayed progress in negotiations for a deal.
On oil markets US benchmark West Texas Intermediate for July fell 67 cents to $59.63 a barrel, while Brent shed 71 cents to $64.85.
Gold fetched $1,185.80 compared with $1,190.33 late Friday.
In other markets, Taipei declined 0.78%, or 75.38 points, to 9,625.69; Manila ended 1.19%, or 89.91 points, higher at 7,670.37; Jakarta ended down 0.05%, or 2.56 points, at 5,213.82 and Kuala Lumpur ended down 0.24%, 4.11 points, at 1,743.41.
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