10-8-13 1:34 AM EDT | Email Article
 

By Daniel Inman

 

Stocks in China rose on Tuesday, as Shanghai came back online after a week-long public holiday.

 

Asian markets started the day lower, taking their lead from a negative session on Wall Street, on Wall Street, where the Dow Jones Industrial Average (DJI) fell 0.9%, as investors remained fixated on the deadlock in Washington, which has resulted in the first partial shutdown of the U.S. government in 17 years.

 

Most markets moved into positive territory after the Shanghai Composite resumed trading after the National Week public holiday, with the index last up 0.5%.

 

The news flow from Asia's largest economy has been slow, due to the public holiday. Investors are looking ahead to trade and inflation data, out over the weekend and early next week, to see whether China will produce further signs of an economic recovery that have helped support stocks in recent weeks.

 

"There was no bad news over the National Day holiday week, so stocks are turning slightly higher," said Tang Yonggang, analyst with Hongyuan Securities.

 

Severe smog in Beijing over the weekend raised expectations for government measures to improve pollution, helping stocks in the environmental sector. Xiamen Savings Environmental Co. , which makes filtration products, jumped 8.1% and waste-water-treatment firm Sound Environmental Resources Co. added 5.2%.

 

Hong Kong's Hang Seng index rose 1%, Indonesia's JSX added 1.1% and Singapore's Strait Times index was 0.4% higher.

 

Not all markets recovered on Tuesday, with Australia and South Korea extending losses made in the previous session. The Kospi was 0.3% lower and the S&P ASX 200 dropped 0.3%.

 

The Nikkei reversed losses from earlier in the session and was last up 0.1%. Japanese stocks recovered as the dollar edged higher against the yen, picking itself up from the day's low of Yen96.59.

 

The dollar was last at Yen96.95, compared to Yen96.71 late Monday in New York, and making a mild recovery from a 0.8% fall in the previous session.

 

Also in Tokyo, Japan Airlines Co. fell 1.6%, eating into a 3% gain made during the previous session. The stock rose on Monday on expectations that the company would make a landmark deal with Airbus, with the firm announcing after the market closed that it would buy 31 Airbus planes.

 

Sharp Corp. dropped 1.4% due to dilution concerns after the company said Monday that it is setting its new share-offering price at Yen279 a share, which would allow the company to raise as much as Yen136.6 billion ($1.4 billion) -- around Yen30 billion less than originally expected.

 

Fuji Heavy Industries gained 2.5% after a Nikkei report said that the company will develop a hybrid sport-utility vehicle with Toyota.

 

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(END) Dow Jones Newswires

October 08, 2013 01:34 ET (05:34 GMT)

Copyright (c) 2013 Dow Jones & Company, Inc.
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