Chinese stocks posted their biggest advance in nearly four months on Tuesday, after the government unveiled guidelines to reform its economic system in 2015, which includes further opening up capital markets.
Japanese stocks rose to a three-week high on Tuesday thanks to Wall Street's record close and a surge in companies announcing higher shareholder returns.
In Tokyo, the Nikkei 225 index gained 136.11 points, or 0.7%, to 20,026.38. The yen weakened a little against the greenback, with the dollar buying ¥120.04, compared to ¥119.67 at the previous Tokyo stock close.
Hong Kong stocks rose on Tuesday, led by Chinese companies, as excitement in mainland markets over accelerated economic reform and financial deregulation rippled across the border.
In Hong Kong, the Hang Seng Index recovered 102.29 points, or 0.4%, to 27,693.54
CHINA
The Shanghai CSI 300 jumped 156.08 points, or 3.4%, to 4,731.22
The State Council, China’s cabinet, said in a guideline published on Monday that the country needs deepen the economic system reform in 2015 by further opening up the financial sector to both foreign and domestic investors, expanding capital markets, and intensifying the reform of state-owned enterprises, according to the Chinese government’s official website.
Financial shares rallied across the board, with brokers rising sharply. Huatai Securities Co. Ltd., one of China’s largest brokerage firms soared limit-up by 10%, after it kicked off its Hong Kong initial public offering on Monday, aiming to raise up to $4.5 billion U.S.
Orient Securities Co. Ltd. and Dongxing Securities Co., Ltd. also surged 10%. Haitong Securities and Citic Securities Co. Ltd gained 7.5% and 6.6% respectively.
Banks also recorded a solid advance, with China Merchants Bank Co., Ltd. spiking 4.6%, and Bank of China Ltd, China Citic Bank Corporation Ltd., China Construction Bank Corporation and China Minsheng Banking Corp., Ltd. all rallying 3%.
Railway stocks jumped, after China’s top economic planning agency said Monday it gave the green light to six rail and subway projects, with a total investment of close to 250 billion yuan ($40 billion U.S), to spur economic growth. China Communication Construction Co. Ltd. surged 10%, China Railway Construction Corporation Ltd. jumped 3.5% and China Railway Group Ltd. climbed 2.6%.
In other markets
In Korea, the Kospi index gained 7.13 points, or 0.3%, to 2,120.85
In Taiwan, the Taiex hiked 110.67 points, or 1.2%, to 9,716.77
In Singapore, the Straits Times index slid 5.53 points, or 0.2%, to 3,454.04
In New Zealand, the NZX 50 dropped 15.55 points, or 0.3%, to 5,757.16
In Australia, the S&P/ASX 200 slipped 43.67 points, or 0.8%, to 5,615.50
