Asian stocks rose, sending the regional benchmark index to the highest level in four months, as equities in Hong Kong jumped amid speculation China will do more to support the property market.
Japan’s Nikkei 225 index retreated 19.68 points, or 0.1%, to 14,405.76
The Hang Seng Index in Hong Kong bolted higher 230.39 points, or 1%, to 22,582.77
China Overseas Land & Investment Ltd., the largest mainland developer listed in Hong Kong, surged 4.1% after the People’s Bank of China told lenders to expedite home loans.
Nexon Co., a developer of online games listed in Tokyo, jumped 12% after announcing a plan to buy back shares. Kadokawa Corp. and Dwango Co. soared in Tokyo on a report they would merge, which was confirmed after the close.
ICBC added 2.1% to HK$4.79. China Construction Bank gained 2% to HK$5.50. China Overseas Land rose 4.1% to HK$19.84.
Bank of China Ltd., the nation’s fourth-largest lender by market value, added 1.7% to HK$3.49 in Hong Kong after announcing it will seek 100 billion yuan ($16 billion U.S.) from selling preferred stock.
Among shares that fell, JGC Corp. plunged 13% to 2,910 yen. The operator of industrial plants said it was targeting full-year net income of 42 billion yen for the current fiscal year, compared with the 52.6 billion yen analysts estimated.
The Hang Seng China Enterprises Index of mainland companies traded in the city soared 1.4%. As of yesterday, the so-called H-share index had slumped 13% since Nov. 18, when it surged the most in two years after the Communist Party outlined economic reforms.
While the China’s November policy package led Goldman Sachs Group Inc. to raise its recommendation on Chinese shares to overweight and spurred Citigroup Inc. to predict returns of at least 20% in 2014, investors have shifted their focus to the depth of the economic slowdown in the world’s second-biggest economy.
CHINA
Shanghai’s CSI 300 Composite lost 2.48 points, or 0.1%, to 2,172.37
China’s central bank told 15 lenders including Industrial & Commercial Bank of China Ltd. and China Construction Bank Corp. at a meeting on May 12 to "improve efficiency of service, give timely approval and distribution of mortgages to qualified buyers," according to a statement posted on its website yesterday.
In other markets;
Taiwan’s Taiex Index jumped 57.22 points, or 0.7%, to 8,875.16
Singapore’s Straits Times Index returned from holiday to climb 36.16 points, or 1.1%, to 3,259.09
Korea’s Kospi index gained 27.90 points, or 1.4%, to 2,010.83
New Zealand NZX 50 index added 14.02 points, or 0.3%, to 5,213.36
Australia’s S&P/ASX 200 dipped 1.70 points to 5,496.50
