• Asian stocks mostly up, Nikkei extends gains


    HONG KONG: Asian markets were mostly higher on Wednesday as Tokyo extended a rally after the dollar broke 116 yen for the first time in seven years, while speculation swirls that Japan may put off another unpopular sales tax hike.

    Wall Street provided support for buyers again after the Dow and S&P 500 squeezed out another record for a fifth straight session, while investors await the release this week of Chinese indicators and a G20 summit at the weekend.

    Tokyo added 0.43 percent, or 72.94 points, at 17,197.05, Seoul rose 0.22 percent, or 4.27 points, to close at 1,967.27 and Hong Kong advanced 0.55 percent, or 129.90 points, to 23,938.18, while Shanghai put on 1.00 percent, or 24.81 points, to 2,494.48.

    However, Sydney gave up 0.98 percent, or 54.0 points, to close at 5,463.1.

    Japanese shares have surged almost 12 percent since the end of October, helped by the Bank of Japan’s decision to widen its monetary easing, which sent the yen plunging.

    They were given fresh momentum Wednesday as investors digested speculation that Prime Minister Shinzo Abe is mulling a delay to a sales tax hike as the economy struggles to overcome the impact of a rise in April.

    The increase seven months ago has been blamed for throwing a tentative economic recovery into reverse and threatens another technical recession.

    Major Japanese newspapers reported Wednesday that Abe may call a snap election next month if he decides to put off the second tax hike.

    His ruling coalition would be likely to win the election, which would be greeted positively by the stock market and trigger fresh yen-selling, analysts said.

    In foreign exchange deals, the dollar was at 115.38 yen against 115.74 yen in New York, where it at one point topped 116 yen for the first time since October 2007.



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