Japanese stocks soared Tuesday, towering over other Asian markets as Tokyo investors returning from a four-day weekend played catch-up with central-bank decisions, strong U.S. jobs data and a weaker yen.
In Tokyo, the Nikkei 225 Index returned from holiday to shoot higher by 486.20 points, or 3.6%, to 14,180.24, its highest finish since June 2008. The index is up 36% year-to-date.
In Hong Kong, the Hang Seng Index soared 132 points, or 0.6%, to 23,047.09
The jump came as the market reopened for the first time since Thursday, reacting to developments in the interim, including the European Central Bank’s quarter-point rate cut, the Federal Reserve’s commitment to cut or increase its monthly bond purchases as required, and better-than-expected data on U.S. non-farm payrolls.
The U.S. dollar also moved back above the 99-yen level, staying within reach of the psychologically important ¥100 level, after trading under ¥98 during last Thursday’s Japanese stock session.
Shares of Toyota Motor Corp. jumped 4.9% a day after the Nikkei newspaper reported the auto giant was expected to report a more-than-tripling of its group operating profit for the year ended March 31, exceeding the forecast it issued in February.
Also leading the charge among exporters, shares of Nissan Motor Co. gained 3.9%, Sony Corp. spiked 6.4%, and Fanuc Corp. climbed 4.7%.
Over in Sydney, the S&P/ASX 200 erased most of its losses after the Reserve Bank of Australia’s monetary-policy decision.
Banking stocks declined after the rate cut to pressure the broader market, with Australia & New Zealand Banking Group sliding 1% and Commonwealth Bank of Australia losing 1.9%.
Meanwhile, shares of Billabong International Ltd. were halted in Sydney at the surfwear retailer’s request, saying the move was related to possible transactions involving the company. The halt will be in effect until Thursday or whenever the company makes an announcement.
Billabong has been in talks with potential buyers.
In Hong Kong, shares of Chinese banks helped pull the market higher as they reversed losses in afternoon trade amidst broad regional gains and mild advances for U.S. equity futures.
Bank of China Ltd. rose 0.8% and China Construction Bank Corp. climbed 0.6%.
Heavyweight HSBC Holdings PLC ended 0.2% higher ahead of its quarterly results.
The performance in Shanghai and Hong Kong came as markets awaited the release of a slew of Chinese economic data, starting Wednesday. China will release its monthly trade data Wednesday, followed by inflation numbers a day later.
Figures released recently from the National Bureau of Statistics and HSBC showed Chinese economic activity had cooled in both the manufacturing and services sectors in April.
In other markets;
In Shanghai, the CSI 300 Index increased 3.96 points, or 0.2%, to 2,529.94
Singapore’s Straits Times Index gained 0.87 points to 3.383.16
Taiwan’s Taiex Index stepped back 5.99 points, or 0.1%, to 8,163.06
Korea’s Kospi Index dipped 7.13 points, or 0.4%, to 1,954.35
The New Zealand Exchange 50 grew 25.50 points, or 0.6%, to 4,621.73
Australia’s S&P/ASX slid 12.47 points, or 0.2%, to 5,143.73
