26.07.201305:54:18UTC+00Aussie stocks boost, Japan retreat

Japanese stocks plunged down Friday toward a third straight day of losses as exporters drifted back on the yen’s strength, while Australian and South Korean shares surged following overnight gains on Wall Street.

Nissan Motor Co. and Advantest Corp. lost stability in Tokyo after displaying their quarterly results, while shares of Chinese railway construction firms gave back some of the gains recorded in the previous session.

Japan’s Nikkei Stock Average relinquished 2.1%, and China’s Shanghai Composite surrendered 0.7%, after each also drop down in the previous two sessions.

The losses stood out versus shy actions in other regional markets, with Hong Kong’s Hang Seng Index and South Korea’s Kospi bolstering 0.2% each in choppy trade, while Australia’s S&P/ASX 200 spiked 0.5%.

“The global share-market rally is struggling for momentum, as lingering concerns about Chinese growth and mixed corporate earnings in Europe and the U.S. prompted global investors to take profits and wind back risk trades,” said Perpetual head of investment market research Matthew Sherwood.

U.S. stocks increased overnight, with the Nasdaq Composite pulling higher after better-than-expected results from Facebook Inc. late the previous day.

The sharp decline in Japanese equities came as the U.S. dollar slid under the ¥99-level Friday, after straddling ¥100 in Asian trading the previous day.

Meanwhile, investors’ attention turned to earnings for the quarter ended June 30 and companies’ forecasts.

Shares of Advantest Corp. plunged 9.8% after the technology firm on Thursday reported a net loss, compared with a profit in the year-ago period.

Auto major Nissan lost 1.7% despite reporting a 14% increase in quarterly profit, while Suzuki Motor Corp. slid 1.9% in a downbeat market despite upbeat results at its Indian subsidiary.

Banks also retreated, shrugging off a Nikkei newspaper report the nation’s three so-called mega banks had likely generated a 20% increase in quarterly profits.

Among the trio, Sumitomo Mitsui Financial Group Inc. missed 3.5%, and Mitsubishi UFJ Financial Group Inc. plunged 4.1%, while Mizuho Financial Group Inc. lower with 2.8%.

Official data released earlier in the day showed June consumer prices rose in Japan after the central bank launched a financial stimulus on an unprecedented scale earlier this year.

Over in Seoul, shares of Samsung Electronics Co. backslide 0.5%. The world’s biggest chip maker by sales said its second-quarter profit skyrocketed 50% to hit a fresh record, but its earnings momentum showed signs of slowing in terms of its key smartphone segment.

Shares of China Railway Construction Corp. traded 1.6% lower, and China Railway Group Ltd. gave up 1.2% in Hong Kong, a day after they rallied in response to Beijing’s announcement of planned investments in railways Wednesday. The two companies’ Shanghai-listed shares slumped 1.6% and 2.3%, respectively.

“We believe that markets have not fully priced in Wednesday’s statement by the Chinese State Council, introducing stimulus measures. ... The measures are likely to be followed by further steps ensuring a modest rebound of economic momentum” in the second half of 2013, said Crédit Agricole senior economist Dariusz Kowalczyk.

Gains for Australian banks put the benchmark S&P/ASX 200 on track for a fifth straight day of advance. Australia & New Zealand Banking Group boosted 1.5%, and National Australia Bank Ltd. bolstered 1.1%.