Asian shares rise in subdued trade following US gains

Asian shares rise in subdued trade following US gains

Nikkei rises 0.4%

Japanese shares extended the previous session’s 2 percent rally but trade was subdued as dollar-yen retreated from last week’s three-week high of 99.1 yen. Still, exporters remained resilient in spite of this as the currency pair traded near the 99 handle.

Among exporters, Fanuc, Sony and Mazda Motor led gains by over 1 percent each.

Consumer electronic makers Toshiba and Panasonic are in focus on reports that Toshiba and a U.S. consortium are expected to join in a final round of bids for Panasonic’s health care business.

Investors can expect an outcome about Japan’s sales tax hike before October 7, the nation’s economy minister said over the weekend. He said Prime Minister Shinzo Abe will reach a final decision before the start of the Asia-Pacific Economic Cooperation summit meeting that kicks off the first week of October.

Sydney up 0.4%

Higher commodity prices underpinned slight gains on Australia’s resource-heavy benchmark index.

Miners Atlas Iron and Mount Gibson rose 1.5 percent each after both copper and steel prices rose on Friday.

In earnings news, drilling services firm Boart Longyear tumbled 8 percent after swinging to a loss for the first-half and said that it had cut thousands more jobs. Television network Seven Group eased 0.7 percent ahead of reporting full-year results.

Kospi up 0.5%

South Korean equities tracked Asia-wide gains thanks to a rally in domestic manufacturers.

Automaker Hyundai Motor jumped over 2 percent while Kia Motors rose 1 percent as the yen firmed in early trade. Tech exporters benefited as well with LG Electronics and LG Display adding 1 percent each.

By’s Nyshka Chandran. Follow her on Twitter @NyshkaCNBC

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