Japanese stocks soared Wednesday to end at their highest level in more than four years as the yen skidded amid hopes the country’s central bank may adopt aggressive easing measures following Governor Masaaki Shirakawa’s planned early departure.
In Japan, the Nikkei 225 Index recovered 416.83 points, or 3.8%, to 11,463.75, a level it hasn’t seen since September 2008.
In Hong Kong, the Hang Seng index restored 108.40 points, or 0.5%, to 23,256.93
The U.S. dollar briefly topped 94 yen and the euro climbed as high as ¥127.69 — a high neither currency has seen since 2010. The yen’s fall against them came after Governor Shirakawa late Tuesday said he would step down from his post on March 19, a few weeks ahead of the expiration of his term, to coincide with the departure of two deputy governors.
Analysts said the news likely means an accelerated and potentially more wide-ranging policy-easing plan will emerge from the Japanese central bank.
Japanese banks and exporters rallied following Shirakawa’s announcement.
Mizuho Financial Group Inc. climbed 5.2% and Sumitomo Mitsui Trust Holdings Inc. soared 6.7%.
Toyota Motor Corp. rallied 6.1% after the auto giant reported a 23% increase in quarterly profit and raised its full-year forecast.
Other auto makers also advanced, with Subaru maker Fuji Heavy Industries Ltd. jumping by 5.1%, Isuzu Motors Ltd. up 5.2%, and Honda Motor Co. higher by 3.3%.
Banks also led gains in Hong Kong, where Europe-exposed banking heavyweight HSBC Holdings PLC rose 1.1%, generally, while Bank of Communications Co. added 0.5%.
Gaming stocks tumbled, however, following reports China is planning to crack down on some Macau gambling-junket operators allegedly linked to organized crime.
Hang Seng Index constituent Sands China Ltd. sank 5.2%, Wynn Macau Ltd. skidded 6.8% and Melco International Development Ltd. lost 5.5%.
In Australia, sectors that investors tend to turn to for higher yields were in the lead, with Sonic Healthcare Ltd. up 1.4%, while supermarket giant Woolworths Ltd. climbed 2.7%.
South Korea’s Kospi declined among the major markets in Asia, falling 0.1% amid fears the yen weakness would boost the competitiveness of rival Japanese exporters.
Kia Motors Corp. fell 2.1%, while affiliate Hyundai Motor Co. ended 2% lower.
In other markets
In Shanghai, the CSI 300 Composite Index eked up 4.17 points, or 0.2%, to 2,775.84
In Singapore, the Straits Times Index reacquired 3.87 points, or 0.1%, to 3,276.53
Korea’s Kospi Index fell 1.99 points, or 0.1%, to 1,936.19
Taiwan’s Taiex Index added 19.71 points, or 0.3%, to 7,906.65
New Zealand markets had the day off
In Australia, the S&P/ASX 200 gained 38.23 points, or 0.8%, to 4,920.95
