Japan shares neared a four-and-a-half-year high Monday, standing out among mostly higher regional stocks as reports that Asian Development Bank chief Haruhiko Kuroda could be the country’s next central bank spurred buyers.
In Japan, the Nikkei 225 Index soared 276.58 points, or 2.4%, to 11,662.52, to end at its highest level since September 2008, following reports that Kuroda would likely head the Bank of Japan and that Kikuo Iwata will be one of his two deputy governors. Both Kuroda and Iwata are believed to favour bold measures to end deflation in Japan.
In Hong Kong, the Hang Seng index gained 37.64 points, or 0.2%, to 22,820.08
Japanese Prime Minister Abe is reportedly expected to make Kuroda’s nomination official by mid-week. The nomination must also be approved by parliament.
Financials, which are among sectors that stand to benefit in an inflationary environment, performed strongly Monday in Tokyo.
Sumitomo Mitsui Financial Group Inc. rose 1.6%, Mitsubishi UFJ Financial Group Inc. added 2.7% and Mizuho Financial Group Inc. gained 2%.
Exporters rallied as the yen dropped, with Sony Corp. rising 3.4%, Olympus Corp. advancing 3.1%, and Advantest Corp. jumping 3.8%.
Property developers fell in Hong Kong after the local government imposed restrictions on new transactions.
Sun Hung Kai Properties Ltd. dropped 1.3% and Cheung Kong Holdings Ltd. gave up 0.6%.
Over in South Korea, some of the country’s major exporters were undercut by concerns about the falling yen and a resulting improvement in the competitive position of their Japanese rivals.
Hyundai Motor Co. declined 2.1% and Kia Motors Corp. fell 0.9%.
Shares of Samsung Electronics Co. ended little changed in the downbeat market after the company launched a new eight-inch tablet, called the Galaxy Note 8. The gadget is due to hit stores in the second quarter
Stocks that pay high dividends saw gains in Sydney. Hearing-aid manufacturer Cochlear Ltd. advanced 1%, while National Australia Bank Ltd. added 1.5%
CHINA
The broad gains came even as a preliminary measure of Chinese manufacturing by HSBC on Monday showed an index measuring activity eased to 50.4 from 52.3 in January.
The Shanghai CSI 300 Composite 300 index edged ahead 8.36 points, or 0.3%, to 2,604.96
Over the weekend, state-run Xinhua News Agency reported China will soon change rules to allow more overseas funds invest in the local stock market.
Several financials advanced in Shanghai, with China Citic Bank Corp. rising 2.2% and broker Citic Securities Co. gaining 1%.
The government also said that it will raise fuel prices for the first time since September and Shanghai-listed energy stocks gained.
Among refiners, PetroChina Co. rose 0.3% and China Petroleum & Chemical Corp., or Sinopec,, gained 2.7%.
In other markets
Korea’s Kospi Index slid 9.37 points, or 0.5%, to 2,009.52
In Taiwan, the Taiex index subsided 39.21 points, or 0.5%, to 7,947.68
The Singapore Straits Times Index inched up 0.63 points to 3,288.76
In New Zealand, the NZX 50 index added 11.84 points, or 0.3%, to 4,226.44
In Australia, the S&P/ASX 200 prospered 37.62 points, or 0.8%, to 5,055.77
