Asian stocks surged on Wednesday, with Japan’s main benchmark hitting six-month highs, after China indicated plans to expand its support to Europe as the region grapples with debt woes.
In Japan, the Nikkei 225 Index vaulted 208.27 points, or 2.3%, to close at 9,260.34
In Hong Kong, the Hang Seng Index ballooned 447.40 points, or 2.1%, to 21,365.20
Supportive news concerning Europe also emerged in Asia on Wednesday, as People’s Bank of China Gov. Zhou Xiaochuan said he believes the euro-zone’s challenges can be solved and that China will expand investment in Europe.
Japanese exporters rallied as the dollar extended its surge against the yen overnight, prompted by Tuesday’s surprise monetary easing from the Bank of Japan.
The dollar traded at ¥78.45, up from ¥77.60 late Monday.
Among export-sector gainers Wednesday were Toyota Motor Corp., up 4.7%; Honda Motor Co., up 3.3%; and Sony Corp. rocketing ahead by 5.7%.
The Hong Kong market got a boost as property firms extended a rebound from losses at the start of the week, with Sun Hung Kai Properties Ltd. climbing 4.3%, Hang Lung Properties Ltd. trading up 3.4%, and Sino Land Co. gaining 4%.
The gains in Japan were even made against notable losses for several firms.
Yahoo Japan Corp. fell 3.7% after separate AllThingsD and MarketWatch reports that Yahoo Inc.’s talks with the parent of China’s Alibaba.com Ltd. and with Japan’s Softbank Corp. over the sale of the firm’s Asian assets have fallen apart.
Yahoo owns about 40% of Alibaba.com — shares of which remained in a trading halt Wednesday — and 35% of Yahoo Japan, while Softbank, which traded up 0.4%, also holds a stake.
Shares of Elpida Memory Inc. plunged 14.4% in Tokyo, trading limit-down at one point, after the firm said Tuesday that talks to secure capital to ease the company’s debt burdens weren’t going smoothly.
Elpida had been in negotiations with the Japanese government and other entities, but said in its most recent earnings statement that "material uncertainty about its assumed going concern is found."
Elpida -- the world’s No. 3 DRAM maker -- saw its two larger rivals advance in Seoul, as Samsung Electronics Co. gained 5.1%, and Hynix Semiconductor Inc. rose 5.3%.
In Australia, earnings and guidance statements provided some support, with Commonwealth Bank of Australia up 0.5% after posting a higher first-half profit, and investment firm Perpetual Ltd. up 7.2% after it lifted its guidance.
However, energy and material firms dragged, with Aquarius Platinum Ltd. falling 6.5%, and Rio Tinto Ltd. trading down 0.6%.
In other markets;
The Shanghai CSI 300 gained 27.50 points, or 1.1%, to 2,549.61
Taiwan’s Taiex Index added 121.16 points, or 1.5%, to 8,005.24
Korea’s Kospi Index tacked on 22.68 points, or 1.1%, to 2,025.32
Singapore’s Straits Times Index gained 24.27 points, or 0.8%, to 3,011.68
New Zealand’s NZX 50 Index subtracted 36.46 points, or 1.1%, to 3,293.87
Australia’s S&P/ASX 200 Index gained 10.57 points, or 0.3%, to 4,253.40
