Hong Kong stocks on Friday suffered their worst drop in more than eight months as worries about the impact from a new strain of avian flu in China hurt sentiment, slamming airline shares in particular.
But Japanese shares were a major exception, with several sectors extending their rally on expectations for unprecedented monetary stimulus.
In Japan, the Nikkei 225 index leaped 199.10 points, or 1.6%, to close the week at 12,833.64
Hong Kong’s Hang Seng Index returned from holiday to collapse 610.59 points, or 2.7%, to 21,726.90, its worst percentage decline since late July, following reports of deaths linked to a new strain of avian flu. Airline stocks in Europe were also hit by the news
Japan’s Nikkei Stock Average enjoyed a weekly gain of 3.5%.
By contrast, South Korean stocks suffered a weekly loss of 3.9%, while the benchmarks in Hong Kong and Australia lost 2.6% and 1.5%, respectively.
The Nikkei Average’s advance Friday came on top of the 2.2% rally Thursday, when the Bank of Japan’s decision to unveil bold policy easing sparked a sharp swing higher for stocks in Tokyo, also spurring shares on Wall Street later in the day, despite the downbeat jobless-claims figures.
Japanese property shares were among the top performers after the central bank said it would buy more real-estate investment trust securities.
Mitsui Fudosan Co. jumped 13%, Mitsubishi Estate Co. spiked 10.5% and Sumitomo Realty & Development Co. added 12.6%.
Cathay Pacific Airways Ltd. dropped 4.1% amid concerns about the impact of bird-flu deaths in China on air travel.
Among mainland Chinese carriers, Air China Ltd. slumped 9.8%, China Eastern Airlines Corp. lost 8.3% and China Southern Airlines Co. lost 8.5%
Exporters also enjoyed heavy buying, as the Bank of Japan’s moves helped the dollar soar against the yen. After topping ¥97 earlier in the day, the dollar was more buying ¥96.22 by late afternoon in Tokyo.
Among the major exporters, Nissan Motor Co. jumped 6.1%, Toyota Motor Corp. rose 3.4% and Hitachi Ltd. added 3%.
Honda Motor Co. gained 0.7% despite a Kyodo News report that it was recalling more than 145,000 vehicles in Japan.
Also joining the rally were financials, among the sectors expected to benefit from the Bank of Japan’s latest policy actions. Mitsubishi UFJ Financial Group Inc. rose 5%, while smaller lender Shinsei Bank Ltd. leapt 8.1%.
Among other major movers, Seven & I Holdings Co. soared 10% after posting a record net profit for its fiscal year ended in February, while forecasting another record-beating performance in the current year.
Energy stocks dropped as U.S. benchmark crude-oil prices remained under $94 a barrel. Shares of Cnooc Ltd. tumbled 3.9% and PetroChina Co. lost 4.2% in Hong Kong, while Australia’s Woodside Petroleum Ltd. gave up 2% in Sydney.
Financial stocks were also hit outside Japan, with Commonwealth Bank of Australia down 1.7%, while KB Financial Group Inc. lost 2.2% in Seoul, and China Construction Bank Corp. dropped 3.7% in Hong Kong.
The weakness for bank stocks kept the Australian market in negative territory, in spite of gains for the largest miners. Helped by a rise in metal futures overnight in London, BHP Billiton Ltd. added 1.5% and Rio Tinto Ltd. gained 1.8%, after the sector took a beating in the previous session.
South Korean car makers fell sharply, in contrast with the auto sector’s strong show in Tokyo, on mounting worries about the impact from a weakening yen that aids their Japanese rivals. Hyundai Motor Co. sank 4.4%, and affiliate Kia Motors Corp. skidded 4.7%.
Samsung Electronics Co. slipped 0.1%, outperforming the broader market after issuing a first-quarter forecast for a sharp rise in operating profit.
In other markets;
Markets in Shanghai were closed for holiday
In Korea, the Kospi Index doffed 32.22 points, or 1.6%, to 1,927.23
The Singapore Straits Times Index fell 8.02 points, or 0.2%, to 3,299.78
In New Zealand, the NZX 50 added 2.81 points, or 0.1%, to 4,432.97
Australia’s ASX 200 shed 22.06 points, or 0.5%, to 4,891.43
