By Sarah Turner and V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Japanese stocks on Thursday ended at
their best level in more than four years, standing out in Asia as
other major markets suffered losses amid caution ahead of key
central-bank decisions and economic data.
The Nikkei Stock Average rose 0.3% to 11,968.08, a closing level
it hasn't seen since September 2008, with exporters broadly
advancing. The benchmark had earlier in the day topped the
psychologically important 12,000-point level, but pared those gains
after the Bank of Japan left its monetary policy unchanged.
Most other major markets fell, with China's Shanghai Composite
Index falling 1%, South Korea's Kospi dropping 0.8%, Australia's
S&P/ASX 200 losing 0.2% and Hong Kong's Hang Seng Index ending
marginally lower.
The drop came as investors turned cautious ahead of a packed
schedule of key central bank events and economic data. That
included the European Central Bank and Bank of England decisions
later Thursday, and the U.S. nonfarm payrolls data Friday.
Andrew Sullivan, head of sales trading at Kim Eng Securities,
said that with U.S. markets near highs, "people are worried ahead
of the data in case there's a bad figure." Read: Close calls on
easing for ECB, Bank of England.
The Dow Jones Industrial Average (DJI) reached a record high
Tuesday, after an improvement in a private-payrolls growth and a
smaller-than-expected drop in factory orders. Read: Stocks gain as
Dow extends record rise.
Dow futures (DJH3) were pointing to a likely higher opening
Thursday, rising 25 points to 14,290.
Stock trading in Tokyo saw several exporters rise over the yen's
recent declines, amid optimism over the government's efforts to
spur the economy.
Mazda Motor Co. (7261.TO) jumped 4.6%, Nintendo Co. (NTDOF)
spiked 4.8% and Bridgestone Corp. (BRDCF) rallied 4.2%.
Olympus Corp. (OCPNF) soared 5.5% after a Nikkei news report
that the firm will slash more of its interest-bearing debt load
than planned by the end of the next fiscal year in March 2014.
At its policy meeting Thursday, the Bank of Japan left its
interest rates and asset purchases on hold, but many economists
expect action at next month's meeting. Read: Bank of Japan stands
pat ahead of new leadership.
Steel makers slipped, however, after a Nikkei report they will
pay 33% more for iron ore in the April-June quarter than in the
first three months of the year. JFE Holdings Inc. (5411.TO) dropped
1%, while Kobe Steel Ltd. (KBSTF) fell 1.6%.
Recent gains for ore caught the eye of China's National
Development and Reform Commission, which said late Wednesday that
the price spikes in imported iron ore to China were due in part to
unreasonable pricing mechanisms.
Among Australian iron-ore miners -- key suppliers to the Chinese
market -- Fortescue Metals Group Ltd. (FSUMY) dropped 2.2%, while
BHP Billiton Ltd. (BHP) ended unchanged.
In its response to the NDRC's allegations, BHP said it was
committed to transparent prices in the iron ore market, according
to a Reuters report.
Stocks in Hong Kong and Shanghai pulled back after two days of
advances, with banks leading the way down.
In Shanghai, China Merchants Bank Co. (CIHKY) dropped 2.5% and
Agricultural Bank of China Ltd. (ACGBY) shed 2.4%; the stocks lost
0.9% and 1.3% in Hong Kong.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires