Asian stocks rise as yen slips on policy easing hopes

BSS, Hong Kong: Asian shares were mostly higher on Monday as traders took a cue from advances in New York while the yen edged down on hopes the Bank of Japan will announce new measures to boost the economy.
However, Tokyo’s Nikkei closed lower as traders grew cautious ahead of the end of the Bank meeting, while also taking profits from a morning rally. The European single currency held on to last week’s gains against the yen and dollar after China’s premier at the weekend voiced his support for the eurozone. Sydney rose 46.1 points, or 1.01 percent, to close at 4,625.3, while Hong Kong added 1.40 percent by the break. Seoul closed 0.14 percent, or 2.56 points, higher at 1,879.29 and Singapore was up 1.08 percent in the afternoon.
Mainland Chinese markets were closed for a public holiday. On Wall Street the Dow ended 0.39 percent higher Friday on data showing consumer spending, which is key to driving the US economy, rose 0.4 percent in August from the previous month, better than the forecast 0.3 percent.
That combined with news of a lift in construction spending to lift sentiment.
However, Toyko’s Nikkei ended 0.25 percent, or 23.17 points, lower at 9,381.06 as the dollar’s earlier gains against the yen were pared. The index had been up 0.87 percent by the break.
The dollar rose to 83.44 yen in Tokyo morning trade from 83.25 yen in New York late Friday, while the euro climbed to 115.00 yen from 114.78, hitting the highest level since May. The yen had earlier been as low as 83.86 to the dollar and 115.00 to the euro but jitters over the BoJ meeting, which ends Tuesday, and expectations of monetary easing by the United States next month weighed on sentiment again. The euro moved to around 1.38 dollars at one point in New York Friday, its highest in more than six months, on speculation the US Federal Reserve will step in to kickstart recovery in the US economy. But it eased back slightly to 1.3758 dollars in Tokyo morning trade from 1.3787 as profit-takers moved in. Its recent strength “put the euro at an attractive level for profit-taking, which should put the brakes on further gains for the rest of today,” a dealer told Dow Jones Newswires. However, the euro has been kept buoyant by comments from China’s premier Wen Jiabao that Beijing will support debt-laden Greece and other struggling eurozone nations.
Speaking in Athens on Saturday he said: “China will make a big effort to support the eurozone economy and Greece…. China will participate in the purchase of new Greek bond issues.”