Most Asian stocks climbed Tuesday on signs of progress in U.S. budget talks to avert the fiscal cliff, with exporters and financial firms driving Japanese shares to their highest level in more than eight months.
The Nikkei 225 Index in Japan gained 94.13 points, or 1%, to 9,923.01, a level not seen since early April. The advance builds on gains from the previous session, when a landslide election victory for the Liberal Democratic Party (LDP) sparked fresh optimism for the introduction of deflation-fighting policies.
In Hong Kong, the Hang Seng index fell 18.88 points, or 0.1%, to 22,494.73, paring some of this morning’s gains.
Also supporting stock gains, President Barack Obama reportedly made a new offer late Monday on a deal to avoid the cliff, moving closer to the Republicans’ position. The White House’s latest counterproposal included $1.2 trillion U.S. in revenue increases and $1.22 trillion U.S. in spending reductions, Reuters reported, citing an unnamed source familiar with the negotiations.
Nomura Holdings Inc. climbed 6.4% after a 3.2% rally for its American Depositary Shares overnight, and top Japanese bank Mitsubishi UFJ Financial Group Inc. rising 3.8%.
With the dollar trading around ¥84 Tuesday, many blue-chip exporters added to their Monday’s gains.
Olympus Corp. rose 6.2% and industrial major Kawasaki Heavy Industries Ltd. 1.5%.
Sharp Corp. extended its Monday rally to add another 8.4%.
Tokyo Electric Power Co. zoomed 17.3% higher, also building on strong gains in the previous session, when the stock ended limit-up amid hopes for a more favorable policy towards the sector under the incoming LDP-led government’s regime.
In Hong Kong, insurance major AIA Group Ltd. lost 3.3% after former parent American Insurance Group Inc. wrapped up its stake sale in AIA.
Banks also gained broadly, with China Merchants Bank Co. climbing 1% and China Construction Bank Corp. trading 0.3%.
Elsewhere in the region, Korea Exchange Bank rose 2% in Seoul, National Australia Bank Ltd. added 0.5% in Sydney and Chinatrust Financial Holding Co. advanced 0.6% in Taipei.
In other markets
The Shanghai CSI 300 Composite Index gained 1.42 points, or 0.1%, to 2,368.12
In Singapore, the Straits Times Index dipped 1.91 points to 3,156.79
Korea’s Kospi index added 10.02 points, or 0.5%, to 1,993.09
Taiwan’s Taiex Index recovered 12.46 points, or 0.2%, to 7,643.74
New Zealand’s NZX 50 gained 12.77 points, or 0.3%, to 3,979.25
Australia’s ASX Index picked up 21.81 points, or 0.5%, to 4,595.21
