Most Asian markets ended higher Wednesday, with strong earnings from some major regional corporations pulling in buyers while investors awaited U.S. markets to reopen for the first time after Superstorm Sandy.
Japan’s Nikkei 225 Index improved 86.31 points, or 1%, to 8,928.29
In Hong Kong, the Hang Seng index rocketed up 213.24 points, or 1%, to 21,641.82
Asia markets were on track for a mixed monthly performance in October, with the Kospi set to be the worst performer, showing a 4.1% month-to-date loss. October’s best performer so far was the Hang Seng Index, having gained 3.3% so far in a month that saw the market rise for 10 straight sessions.
Earnings optimism boosted the Japanese market, with construction- and mining-equipment firm Komatsu Ltd. up 3.2% as it kept its earnings outlook unchanged despite posting a half-year profit drop of more than 30% as analysts had expected.
Fuji Heavy Industries Ltd. shot up 6.7% after the Subaru maker raised its fiscal-year profit outlook.
Shipping firm Kawasaki Kisen Kaisha Ltd. sharply narrowed its first-half net loss, and its shares climbed 4.1%. Likewise, Mitsubishi Electric Corp jumped 3.7% after releasing first-half earnings.
Hitachi Ltd. rallied 3.2% after announcing its purchase of the U.K’s Horizon nuclear-power venture, while Toshiba Corp, which lost out on the acquisition, nonetheless, jumped 4.6%.
Japanese stocks had fallen heavily late Tuesday after the Bank of Japan announced near the close of trading that it would expand its asset-buying program by 11 trillion yen ($138 billion U.S.) to a total of ¥91 trillion, a figure that was roughly in line with economist expectations but apparently a disappointment to markets.
But the Bank of Japan also introduced a new lending facility to stimulate bank loans and in an unprecedented move, issued a joint statement with the Finance Ministry, highlighting its commitment to fighting deflation.
Meanwhile, speculation that the U.S. Federal Reserve would maintain monetary stimulus to help the economy recover from the storm saw the U.S. dollar weaken Tuesday, helping to provide commodities with some upside.
Against that backdrop, resource stocks rose in Asia on Wednesday, with Japanese steel maker JFE Holdings Inc. up 4.9% and Australian gold-mining giant Newcrest Mining Ltd. gaining 1%.
Of Hong Kong-listed resource sector firms, China Petroleum & Chemical Corp., also known as Sinopec, rose 1.4%, while China Coal Energy Co. climbed 2.5%.
Some Chinese resource firms saw earnings-related losses, however, with PetroChina Ltd down 2% after reporting a 33% drop in quarterly profit, while Aluminium Corp. of China Ltd. underperformed the broader market, ending 0.3% higher after swinging to a third-quarter loss.
Shanghai trading saw Aluminium Corp. of China rose 0.2%, also less than gains for the the broader market, while PetroChina lost 0.7%.
Industrial & Commercial Bank of China Ltd. gained 2% in Hong Kong after it reported a 15% increase in third-quarter net profit to 62.44 billion yuan ($10 billion U.S.), a figure that exceeded analysts’ expectations.
Property-firms took back some recent losses in Hong Kong, with Henderson Land Development Co. up 1.2% and New World Development Co. improving by 2%.
In other markets
The Shanghai CSI 300 Composite Index gained 14.94 points, or 0.7%, to 2,254.82
In Singapore, the Straits Times Index eased 0.36 points to 3,036.37
Korea’s Kospi index gathered 12.48 points, or 0.7%, to 1,912.06
Taiwan’s Taiex Index fell 16.54 points, or 0.2%, to 7,166.05
The NZX 50 Index jumped 16.59 points, or 0.4%, to 3,957.88
Australia’s ASX Index added 31.31 points, or 0.7%, to 4,517.
