Asian Market News

LONDON (ShareCast) - Asian markets followed Wall Street higher on Friday, helped by firmer commodity prices, which hardened after US Gross Domestic Product fell by less than expected in the first quarter.

Leading the way in Japan was tyre maker Bridgestone (Berlin: BGT.BE - news) , on hopes that it is on the recovery trail after the company said its loss this year would be narrower than previously indicated. Reduced costs means Bridgestone now expects to make a net loss of 46bn yen ($480m) versus its previous guidance of a loss of 62bn yen. Sumitomo Rubber and Yokohama Rubber (Frankfurt: 858091 - news) rose in sympathy.

Flat-panel screen maker Nippon Electric Glass was another stock to rise after upgrading its earnings guidance. It expects operating profit in the second quarter of 2009 to be in the region of 10bn yen, twice the level of its previous guidance, thanks to robust demand for LCD glass.

Real (Frankfurt: BJU.F - news) estate investment trusts (REITs) Nippon Building Fund and Japan Real Estate Investment were wanted after Morgan Stanley (NYSE: MS - news) turned bullish on Japan’s property sector. Property developers Mitsui Fudosan (Frankfurt: 858019 - news) and Sumitomo Realty & Development were pulled higher in the REITs’ slipstream.

The Nikkei 225 closed the week at 9,877, up 81 points on the day.

Hong Kong stocks advanced for the third day in succession. The Hang Seng index climbed 324 points to 18,599.

Property and bank shares led the climb after the Chinese central bank said on Thursday it would leave its monetary policies broadly unchanged. Banks such as ICBC (0349.HK - news) and Bank of Communications were also lifted by a report in the official China Securities Journal which said that new lending could hit 1,200bn yuan in June, which would push first half lending past 7,000bn yuan.

Miners were put under the3 microscope by Goldman Sachs (NYSE: GS - news) which raised its rating on China Shenhua to “buy” from “neutral” while Yanzhou Coal was similarly upgraded. The US bank expects demand for coal to pick up.