Asian stocks mostly higher after U.S. data; Nikkei down 0.09%

Most Asian stocks traded higher as traders view some slack U.S. real estate data out last Friday as a sign the Federal Reserve may be forced to hold back on imminent tapering of its bond-buying efforts. 

In Asian trading Monday, Japan’s Nikkei 225 fell 0.09% as USD/JPYtraded slightly lower. USD/JPY touched a three-week high late last week as the yield gap between U.S. Treasuries and comparable Japanese government bonds rose to the highest levels since March 2012. 

Hong Kong’s Hang Seng jumped 1.12% while the Shanghai Composite added 1.10%. U.S.-listed Chinese stocks have surged in the past 60 days amid several calls China is cheap on a valuation basis. 

Chinese shares have also been helped by the fact that other emerging markets currencies, including India’s rupee and Indonesia’s rupiah, have plunged. Weak emerging markets currencies have weighed on bonds and stocks in those countries, but the Chinese yuan has been comparatively strong. 

Australia’s S&P/ASX 200 added 0.20% ahead of what could be a volatile for Australian equities with the looming release of several critical data points. 

New Zealand’s NZSE 50 rose 0.44% Earlier Monday, Statistics New Zealand said the country’s trade balance fell to a seasonally adjusted NZD774 million last month from NZD414 million in June. Analysts expected a decline to NZD50 million last month. 

In U.S. economic news out last Friday, the Commerce Department said new home sales dropped 13.4% last month to an annual rate of 394,000 units. That is the lowest reading in nine months. In July, the median price for a new home sale rose to $257,200, up from $237,400 in the same month of 2012, according to Reuters.

Singapore’s Straits Times advanced 0.54%. South Korea’s Kospi climbed 0.91%. Along with Chinese shares, South Korean stocks are among Asia’s cheapest on valuation. 

S&P 500 futures inched up 0.07%. The benchmark U.S. index rose 0.60% last week.