Asian stock markets ended mostly higher Thursday with Chinese coal mining companies gaining on hopes of industry consolidation.
Japan's Nikkei Stock Average ended 0.7% higher, China's Shanghai Composite rose 0.3%, Hong Kong's Hang Seng Index slipped 0.1%, Australia's S&P/ASX 200 gained 0.8% and South Korea's Kospi fell 0.3%.
Dow Jones Industrial Average futures were 23 points higher in screen trade."With the recent decline in global equity markets, there is a widespread view that shares in general are undervalued, so even a minor catalyst will trigger a technical rebound," said Hiroichi Nishi, general manager at Nikko Cordial Securities in Tokyo.
Coal miners gained in Shanghai trading on hopes the government will further speed up consolidation of the coal industry. The State Council Wednesday issued a statement stressing the need to push ahead with consolidation efforts. The Council in April had said it aimed to close 8,000 small coal mines with a total output capacity of 200 million metric tons by the end of this year.
But some analysts were doubtful that the gains would last. "It's uncertain how sustainable these gains are, as coal firms are strongly tied to the health of the overall economy," said Chen Jinren, an analyst at Huatai Securities. China Shenhua Energy rose 0.5%, Datong Coal Industry added 1.4% and China Coal Energy gained 1.5%.
In Hong Kong, China Life Insurance tumbled 6.3% a day after it reported earnings. China Life reported a better-than-expected 7.4% growth in first-half net profit, but Citigroup and Credit Suisse cut the company's price targets on the insurer's investment losses during the period. "Given (China Life's) weaker growth profile, we see little by way of near-term catalysts to help maintain its current premium price relative to peers," said Credit Suisse in a note.
