Most Asian markets rallied Thursday, with financials across the board posting handsome gains as investors covered their short sales in the beaten-down banking and brokerage shares. But some analysts were skeptical the advance could be sustained.
In Japan, the benchmark Nikkei 225 index rose 1.0 percent to 12,887.95. Hong Kong's blue-chip Hang Seng Index advanced 2.4 percent to 21,734.72.
In Japan, banking giant Mizuho Financial Group Inc., hard hit this week amid concerns about U.S. financials, soared 4.6 percent.
Toyota Motor Corp. rose 0.9 percent. Japan's top car maker said Wednesday it was acquiring land in Brazil for a new plant, the latest in the aggressive drive by automakers around the world in emerging markets.
Meanwhile, Sony Corp. jumped 2.3 percent. Matsushita Electrical Industrial Co., which sells products under its Panasonic brand, fell 1.4 percent.
In Hong Kong, banks helped lead the market higher.
HSBC was up 3.7 percent, while Standard Chartered rose 4.9 percent. Industrial & Commercial Bank of China, China's largest lender, climbed 2.6 percent.
China's Shanghai Composite ranked among decliners, dropping 0.8% to 2,727.25, on concerns about slowing economic growth.
The government reported Thursday that China's booming economy grew by 10.1 percent in the second quarter compared with the same period last year. That was down from a 10.6 percent expansion in the first quarter in a year earlier.
Real estate and steel stocks were hit by concern about possible continued tight credit after the government said inflation eased to 7.1 percent in June but warned that pressure for prices to rise was still strong.
Real estate developer Poly Real Estate Group fell 2.9 percent. China's biggest developer, China Vanke Ltd., also lost ground.
Oil companies fell while telecoms rose. China Mobile Ltd., the country's biggest phone company, added 2.5 percent, while China Telecom Ltd. was up 3.14 percent.
Banks were mixed. ICBC rose 0.2 percent; Pudong Development Bank Ltd. fell 1.9 percent.
Elsewhere:
Singapore's Straits Times Index added 1.2% to 2,870.68.
Australia's S&P/ASX 200 rose 0.6% to 4,901.
South Korea's Kospi gained 1.2% to 1,525.56.
New Zealand's NZX 50 index added 1.1% to 3,091.38.
Taiwan's Weighted index spiked 3.9% to 6,974.51.
with files from other wire services
