>Asian Shares Mostly Up; Tokyo Jumps, Yen Drops On G-7 Intervention

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A surge in Japan’s shares led most Asian stock markets higher Friday, as the Group of Seven industrialized nations agreed to a coordinated intervention to staunch the yen’s recent surge, providing some relief as the nation grapples with last week’s crippling earthquake and an ongoing nuclear crisis.

Japan’s Nikkei Stock Average climbed 3.0%, Australia’s S&P/ASX 200 advanced 1.3% and South Korea’s Kospi Composite was up 1.1%. Hong Kong’s Hang Seng Index rose 0.8% and China’s Shanghai Composite tacked on 0.6%.

Dow Jones Industrial Average futures were up 99 points in screen trade.

Tokyo stocks rallied on the G-7 news, on relief Japan’s key exporters won’t be hobbled by a rising yen as the nation struggles to cope with last week’s twin disasters. The dollar had touched a new all-time low of Y76.25 early on Thursday.

The yen pulled back sharply against the U.S. dollar after the G-7 statement and as Japan’s Ministry of Finance intervened in foreign exchange markets. Japanese finance minister Yoshihiko Noda said each central bank would intervene in its own timezone. This was the first agreement on joint intervention since September 2000.

“What G-7 is telling us is that they will simply not tolerate a rapid strengthening in the yen,” said Sean Callow, strategist at Westpac bank.

Credit Agricole said in a note to clients: “One could imagine that it was not difficult for Japan to garner G-7 support for joint intervention in currency markets given the terrible disaster that has hit the country.”

“Given expectations of huge repatriation flows into Japan and a possible surge in the yen Japanese and G-7 officials want to ensure currency stability and lower volatility,” it said.

The dollar surged to Y81.72, from Y78.93 late Thursday in New York, and the euro was buying Y115.05, from Y110.58, and $1.4074 against the dollar, from $1.4020.

Buying was spread across Tokyo’s market, with economically-sensitive stocks such as Asahi Glass and Fast Retailing also advancing 2.0% and 6.7% respectively. Among key exporters, Honda Motor added 1.5% and Sharp rose 2.8%.

Sony trimmed morning gains and was up 0.2%. The company said six of its Japanese manufacturing plants, including those making Blu-ray discs and batteries, remain closed and it is investigating whether a disruption in component supply will impact its ability to deliver and make electronic gadgets.

Some traders were circumspect about the Tokyo market’s rise, noting the G-7 action had been anticipated and Japanese officials still have a massive recovery and rebuilding task on hand.

“The problems at the nuclear plant are far from over, and we have a three-day weekend ahead, so it’s hard to keep buying on the weaker yen alone,” said Yumi Nishimura, deputy general manager at Daiwa Securities Capital Markets.

Japanese authorities claimed modest gains Thursday in efforts to tame a heavily damaged nuclear-power plant that has raised global fears of a full-blown nuclear disaster. But radiation levels at the stricken Fukushima nuclear power plant dropped on Friday, further buoying the Nikko. Tokyo Electric Power, which operates the plant, was up 18%.

In addition to the boost for regional equities from the G-7 move, energy stocks were stronger, aided by the rise in crude oil futures after the U.N. endorsed a no-fly zone in Libya and set the stage for a potential vote on a military move within a few hours.

April Nymex crude oil futures were up $1.59 at $103.01 per barrel on Globe.

In Sydney, Woodside Petroleum added 3.7%, Tokyo-listed Index and Japan Petroleum Exploration jumped 6.3% and 9.7% respectively, and Hong Kong-listed Cnooc rose 1.6%.

Bucking the sector’s gains, Sydney-listed Origin Energy dropped 3.1% after resuming trading following its plan to raise A$2.3 billion via a share issue to reduce debt associated with its A$3.26 billion purchase of electricity assets privatize by the New South Wales state government.

In Seoul, Pasco climbed 3.2% on expectations the steelmaker would benefit from quake-induced supply shortages. Tokyo’s Kobe Steel rose 4.2% and Hong Kong Shares of Monahan Iron rose 3.2%.

Among other markets, New Zealand’s NZX-50 rose 0.3%, Singapore’s Straits Times Index added 0.2%, Malaysia’s KLCI rose 0.3%, Taiwan’s Timex gained 1.3%, Indonesian shares were up 0.5%, Philippine shares tacked on 0.6% and Thailand’s SET gained 0.6%.

India’s Sensex fell 0.9% on political concerns after a leaked U.S. diplomatic cable Thursday suggested India’s ruling Congress party offered bribes to win a crucial vote in Parliament on the U.S.-India nuclear deal in 2008.

Lead June Japanese government bond futures were down 0.04 at 139.66 points, weighed by the Nikkei’s rise and the yen’s sharp fall. The yield on the 10-year cash JGB was down two basis points at 1.22%.

Spot gold was at $1,409.90 per troy ounce, up $5.90 from its New York settlement Thursday.