Asia stocks were uniformly, sharply higher Tuesday to begin December. In particular, Japanese stocks rebounded on Tuesday to break the 20,000-point mark for the first time in more than three months, shrugging off soft Chinese factory surveys with the help of a weak yen and rising U.S. futures.
The Nikkei 225 index rocketed 264.93 points, or 1.3%, to 20.012.40, the first time since August 20 that the benchmark index closed above 20,000 points.
In Hong Kong, the Hang Seng grew 384.93 points, or 1.8%, to 22,381.35, biggest one-day percentage gain in almost three weeks, as on positive reaction by investors to news that the yuan would be granted global reserve currency status.
The strong gains followed the International Monetary Fund's decision to add the Chinese currency to its Special Drawing Rights (SDR) basket. Many traders struggled to explain why the long-expected result could still inject so much vitality into the market.
All major sectors in Hong Kong rose, with real estate and telecommunications shares leading the gains.
Financial shares also advanced, as investors bet the yuan's inclusion in the SDR basket would deepen the currency's internationalization, benefiting banks
Data from the Ministry of Finance released on Tuesday showed that Japanese companies raised their spending on equipment and factories by 11.2% year-on-year between July and September, indicating some positive sentiment.
Then in the afternoon, Reuters reported that Japan's annual tax revenue was expected to exceed 56 trillion yen ($456 billion U.S) in the current fiscal year, to hit the highest level in 24 years.
Nissan shares fell 1.9% after news broke that the company was planning to up its stake in Renault to at least 25%, from the current 15%. The biggest shareholder in Renault is the French government. Nissan said in a statement Tuesday afternoon that no concrete decision on the move had been made at Monday's board meeting.
Japanese blue chips traded higher, with shares of Toyota, Sony, Canon, and Mitsubishi Electric up between 1% and 2.9%
Korean markets jumped despite official data released in the morning from the ministry of trade that showed South Korean exports contracted for 11th consecutive month in November.
Exports dropped by 4.7% on-year to $44.43 billion U.S. as sluggish global demand continued to weigh, but the lower number still beat expectations. Economists polled by Reuters had expected South Korea's November exports to slump by 8.3% on-year.
Imports, on the other hand, fell drastically, down 17.6% on-year to total $34.07 billion U.S. for November.
Shares on the Kospi appeared relatively unaffected throughout the trading day. Blue-chip and tech stocks traded mostly higher.
Shares of consumer electronics giant Samsung Electronic closer 2.9% up after the company announced that Dongjin Koh would be the new president of its smartphone business. Koh will take over from the incumbent J.K. Shin, who, Samsung says, will stay on as the head of the overall mobile division, according to reports.
Australian markets leaped as well, as the Reserve Bank of Australia (RBA) kept interest rates unchanged at 2% after its meeting on Tuesday. The central bank said the Australian economy was expanding at a moderate pace despite a slump in commodity prices, and that the Aussie dollar was adjusting.
Banks shares gained sharply during afternoon trade as RBA's positive assessment of the economy increased expectations of a rise in lending in the future. Shares of ANZ, Commonwealth Bank of Australia, Westpac, and NAB closed between 1.5% and 2.3% higher.
CHINA
The CSI 300 in Shanghai climbed 25.28 points, or 0.7%, to 3,591.70,
One theory is that yuan's rising global status would make China assets more attractive to foreign investors, benefiting both stocks and bonds.
Another theory is that yuan's SDR status would help accelerate China's financial deregulation, gradually narrowing the valuation gap between stocks listed in Hong Kong and the mainland.
The National Bureau of Statistics reported that China's manufacturing PMI, a measure of activities in the factory sector, declined marginally, from 49.8 in October to 49.6 in November. The services sector PMI had a reading of 53.6 in November, 0.5 point higher than the previous month, reflecting the country's gradual shift to a more services-led economy.
The Wall Street Journal reported that the Industrial & Commercial Bank of China (ICBC), the country's largest lender by assets, raised $300 million from a U.S. dollar-denominated bond offering via its Sydney branch. ICBC’s shares were down 1.5% during afternoon trade.
In other markets
In Singapore, the Straits Times Index improved 14.32 points, or 0.5%, to 2,870/26
The Kospi index in Korea regrouped 31.96 points, or 1.6%, to 2,023.93
Taiwan’s Taiex index moved skyward 142.69 points, or 1.7%, to 8,463.30
In New Zealand, the NZX 50 leaped 50.53 points to 6,150.68
The ASX 200 bolted higher 99.62 points, or 1.9%, to 5,266.14
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