Asian stocks finished higher Tuesday as expectations for monetary easing in Europe underpinned sentiment, with Hong Kong shares rallying to catch up with gains in global equities as the markets reopened for the first time this week.
Australian stocks defied the broad trend, ending slightly lower after the nation’s central bank left interest rates on hold.
Japan’s Nikkei 225 Index gained 63.11 points, or 0.7%, to close the session at 9,066.59
The Hang Seng Index in Hong Kong vaulted 294.07 points, or 1.5%, to 19,735.53
The broad gains followed a set of weak manufacturing indicators for June from China, U.S. and European nations, with poor data from Europe in particular aiding hopes for further monetary easing. Several analysts expect the European Central Bank to cut interest rates later this week, while many also see the Bank of England announcing a further stimulus.
Elsewhere in the region, S&P/ASX 200 index edged down in Sydney, after the Reserve Bank of Australia left its policy interest rate unchanged at 3.5% after slashing the rate by 0.75 percentage points in the last two months.
Some gambling stocks declined in Hong Kong after data showing weaker-than-expected monthly revenues for casinos in Macau. Wynn Macau Ltd. dropped 2.8%, while MGM China Holdings Ltd. lost 2.2%
In Tokyo, meanwhile, shares of Renesas Electronics Corp. surged 9.8% on reports the struggling chip maker plans to sell or shut down 10 plants within the next three years.
Stocks with an international presence gained across most of the region amid expectations for further monetary easing.
Exporters rallied in Tokyo, with Fujitsu Ltd. up 0.5% and Nikon Corp. climbing 3.1%.
LG Electronics Inc. gained 3.6% and LG Display Co. added 3.7% in Seoul.
Financials stocks in Sydney remained under pressure after the Reserve Bank of Australia left the benchmark cash rate steady at 3.5%, as expected.
Australia & New Zealand Banking Group and Commonwealth Bank of Australia each fell 0.4%
CHINA
Chinese property shares shot higher in Hong Kong, after a survey of property developers by China Real Estate Index System showed average home prices in 100 major Chinese cities rose in June from May, after dropping for nine straight months.
Shanghai’s CSI 300 index eked up 3.48 points, or 0.1%, to 2,468.72
China Resources Land Ltd. rallied 2.9% and Agile Property Holdings Ltd. climbed 3.7% in Hong Kong, while Poly Real Estate Group Co. put on 3.2% in Shanghai.
Chinese automobile stocks also dropped in Hong Kong on reports another mainland city had imposed a cap on annual car sales to improve traffic conditions. Shares of Dongfeng Motor Group Co. slumped 4.4% and Great Wall Motor Co. sank 2.5%.
In other markets
Korea’s Kospi Index prospered 16.17 points, or 0.9%, to 1,867.82
Singapore's Straits Times Index added 34.74 points, or 1.2%, to 2,945.33
Taiwan’s Taiex Index grew 73.20 points, or 1%, to 7,418.36
New Zealand’s NZX index grew 4.47 points, or 0.1%, to 3,444.63
Australia’s ASX Index sagged 5.78 points, or 0.1%, to 4,127.22
