Asian stocks rose from the lowest level in more than three months as U.S. new-home sales spurred optimism about the world’s largest economy, weakening the yen and sending Japanese exporters higher.
In Tokyo, the Nikkei 225 recovered 206.09 points, or 1.3%, to 16,374.14, after hitting its highest intraday level since Nov. 5, 2007. For the year, the index is now up 0.5%, having rallied since early August.
The gains came as the U.S. dollar hit its highest mark against the yen since early 2008. A higher dollar is good for Japanese companies that market their products abroad, as it enables them to cut prices as well as convert the cash into more yen when repatriating the profits back home. The greenback rose to as high as ¥109.36 during the day in Asia and was last at ¥109.26. It traded at ¥109.05 late Wednesday in New York.
In Hong Kong, the Hang Seng Index dumped 153.48 points, or 0.6%, to 23,768.13
Toyota Motor, which gets more than 75% of sales overseas, climbed 2% in Tokyo as the yen traded near the weakest since 2008.
Shares in auto-parts maker Denso Corp. and Fuji Heavy Industries Ltd. also finished higher.
Data yesterday showed sales of new U.S. houses jumped 18 percent to a 504,000 annualized pace, the strongest since May 2008. The median forecast of economists called for the pace to accelerate to 430,000. The one-month increase was the biggest since January 1992.
CHINA
Shanghai’s CSI 300 index dropped 4.90 points, or 0.2%, to 2,436.97. Trading volume in Shanghai rose to 189.3 billion yuan ($30.8 billion U.S.) from Wednesday’s 185.7 billion yuan.
Shanghai Electric Group Co., which makes generator equipment used in nuclear power plants, jumped by the 10% daily limit in Shanghai after the China Securities Journal reported the government will allow four nuclear power projects to be built.
Mainland stocks were up at their highest close in over 18 months on hopes for increased liquidity from regulators. The Wall Street Journal reported that Beijing may replace its reform-minded central bank governor, which could mean a more accommodative monetary policy to support a slowing economy.
If the report is confirmed, analysts say the move could be positive for the market as increased liquidity would help lower funding costs for companies.
In other markets;
In Korea, the Kospi index eased downward 1.53 points, or 0.1%, to 2,034.11
The Taiex index in Taiwan faltered 86.90 points, or 1%, to 9,011.59
In Singapore, the Straits Times STI Index lost 1.82 points, or 0.1%, to 3,290.99
In New Zealand, the NZX 50 moved higher 16.99 points, or 0.4%, to 5,277.86
Australia’s S&P/ASX 200 regained 6.40 points, or 0.1%, to 5,382.17
