China, Korea stocks hit records
Asian stocks rose on Monday, with China's market surging to an all-time high and South Korea also hitting a record.business Updated: May 28, 2007 22:06 IST
Asian stocks rose on Monday, with China's market surging to an all-time high and South Korea also hitting a record, as a rally in metals prices lifted miners and a stronger dollar boosted shares in Japanese exporters.
The US currency hovered near a three-month high against the yen and a six-week peak to the euro as traders bet weak US housing data late last week was not enough to warrant a cut in US interest rates later in the year.
Crude oil prices eased about a third of a percent after a Nigerian oil union strike was suspended at the weekend, but remained above $70 a barrel on worries about gasoline supplies ahead of the US summer holiday season.
European shares were expected to open firmer, but activity was seen limited with several markets, including Britain and Germany, and the United States, closed for public holidays.
Tokyo's Nikkei (.N225: Quote, Profile, Research rose 0.6 percent, while MSCI's index of shares elsewhere in the Asia Pacific region was up 0.4 percent at 0640 GMT (.MSCIAPJ: Quote, Profile, Research.
"Last week's trend of the weaker yen is continuing, so that is a plus for exporters," said Katsuhiko Kodama, senior strategist at Toyo Securities.
A weaker yen boosts companies such as electronics components maker Kyocera (6971.T: Quote, Profile, Research, which rose 1.1 percent, and Honda Motor Co. Ltd. (7267.T: Quote, Profile, Research, which firmed 0.7 percent, as it inflates the value of overseas earnings.
First Published: May 28, 2007 22:05 IST