Asian stocks jumped on Thursday, extending gains made in the previous session, as investors hoped for U.S. and European monetary easing to counter growing economic woes.
Japan’s Nikkei 225 Index gained another 106.19 points, or 1.2%, to 8,639.72
The Hang Seng Index in Hong Kong climbed 157.76 points, or 0.9%, to 18,678.25
The Australian and South Korean markets both returned to positive territory for the year with Thursday’s move, along with Taiwan’s Taiex index.
The moves in Asia came after U.S. stocks surged to their best one-day performance so far this year after signs that the European Central Bank is open to an imminent rate cut and on hopes for fresh easing from the Federal Reserve.
U.S. easing hope was given another boost after the Fed’s number-two official said late Wednesday that the door remained open for more easing should conditions require such a move.
Federal Reserve Chairman Ben Bernanke was due to testify to Congress later Thursday.
Asian financial shares were among the big winners Thursday, taking a lead from the U.S., where Bank of America Corp. led the advance for the Dow Jones Industrial Average
In Tokyo, Sumitomo Mitsui Financial Group Inc. jumped 2.5%, and Nomura Holdings Inc. surged 3.8%, while Citigroup Inc.’s Japanese-listed shares jumped 6.3%, beating a 5.4% gain in its U.S. stock.
Hong Kong-listed HSBC Holdings PLC climbed 2.1% and Agricultural Bank of China Ltd. rose 0.6%.
A weakening of the yen boosted Japanese blue-chip exporters, as the dollar bought ¥79.30, almost one yen higher than 24 hours earlier, while the euro likewise moved from the ¥98 range to ¥99.74 Thursday.
As a result, Mazda Motor Co. — one of the blue chips most attuned to the euro — climbed 4.1%, while Panasonic Corp. jumped 4.2%, and Canon Inc. improved by 3.4%.
Esprit Holdings Ltd. added 1.3% in Hong Kong, while Korean exporters were also performing strongly, with Hyundai Motor Co. up 2.8%, and LG Electronics Inc. leaping 3.4%.
Although trading higher against the yen, the U.S. dollar fell against many other major currencies on Wednesday, helping boost the dollar-denominated crude-oil price and several other key commodities.
Reacting to the move Thursday in Japan, oil major Inpex Corp. jumped 3.3%, while JX Holdings Inc. climbed 2.4%.
Cnooc Ltd. advanced 1.9% in Hong Kong, while PetroChina Co. rose 1.5%.
Australian miners surged as well, with iron-ore producer Fortescue Metals Group Inc. up 2.9%, and diversified minerals extractor Rio Tinto Ltd. adding 2.2%.
In other markets
Shanghai’s CSI 300 Composite Index dropped 15.22 points, or 0.6%, to 2,542.18
Korea’s Kospi Index returned from holiday to report a gain of 46.10 points, or 2.6%, to 1,847.95
Singapore's Straits Times Index eased 1.57 points to 2,759.26
Taiwan’s Taiex Index tacked on 24.16 points, or 0.3%, to 7,080.31
New Zealand’s NZX index added 9.44 points, or 0.3%, to 3,473.96
Australia’s ASX Index gained 53.28 points, or 1.3%, to 4,108.57
