Asian stocks soared Monday, with Hong Kong's benchmark stock index up more than 8% and Japan's top index up more than 5%, as investors rallied around signs that governments will roll out more stimulus measures in coming weeks to ward off economic disaster.
The benchmark Nikkei 225 index closed up 411.5 points, or 5.2%, at 8,329.1 while the Hong Kong stock market rose sharply, with the benchmark Hang Seng Index surging 1,198.8 points or 8.7% to close at 15,044.9.
On the economic front, the Ministry of Finance said that Japan's unadjusted current account surplus plummeted 56.6% on year in October to 960.5 billion yen compared to analysts' expectations for a 50% decline. The current account surplus has fallen for the eighth straight month in October. The October trade surplus was down 87.2% on year to 145.8 billion yen.
Japanese bank lending jumped 3.6% on year in November, the Bank of Japan said, marking the fastest rate of increase since April 1992. The October figure was downwardly revised to reflect a 2.3% annual increase.
Later in the day, the Japanese Eco Watchers current index that measures present situation of the economy fell for the eighth month in a row to 21 in November, according to the latest survey released by the Cabinet Office. Economists had expected the indicator to drop to 20 from October's 22.6. Meanwhile, the outlook index declined for the second consecutive month. The index stood at 24.7, down from 25.2 in October.
Among non-life insurers, Tokio Marine Holdings jumped 8.9% and Mitsui Sumitomo Insurance Group Holdings surged 10.2%. Steel stocks were also higher, with Nippon Steel rising 6.3% and JFE Holdings climbing 7.1%.
Retailer Aeon Co shot up 6.2% after on speculation that top trading firm Mitsubishi Corp is planning to buy roughly 5% stake in the retailer for more than $324 million, and the two will tie up on overseas procurement amid the economic downturn.
Machinery stocks rose, with Komatsu soaring 11.0% and Hitachi Construction surging 11.6%, on hopes for the stimulus packages. Exporters gained on the back of a weaker yen. Honda Motor climbed 5.0%, Canon rose 4.9% and Sony Corp advanced 5.5%.
Among other gainers, Eisai rose 8.2%, Astellas Pharma Inc gained 4.2%, Lifestyle and cosmetics company Kao Corp climbed 3.9%, and Toto jumpe 9.6%.
Banks were mixed, with Mitsubishi UFJ Financial Group losing 1.6%, Mizuho Financial Group gaining 3.65 and Sumitomo Mitsui Financial Group advancing 3.4%.
CHINA
The Chinese stock market closed higher for the sixth straight session on hopes that the government will take new steps to boost economic growth following a high-level planning meeting this week. The benchmark Shanghai Composite Index jumped 72.11 points or 3.6% to close at 2,090.8. The Shenzhen Composite Index for China's smaller second exchange rose 3.7% to 622.9. On the economic front, the latest data on trade and industrial activity in November are due out this week.
Real estate and construction-related stocks rose on state media reports that the government is considering a tax rebate on housing purchases to spur sales. China Vanke jumped 4.6%, while Lander Real Estate and Zhongtie Erju both rose by the daily limit of 10%.
Coal stocks rose, with China Shenhua Energy climbing 5.1% and Pingdingshan Tianan Coal Mining gaining 6.7%. Banks also finished higher. Industrial & Commercial Bank of China advanced 2.5%, China Construction Bank rose 2.7%, and Pudong Development Bank soared 8.8%.
Elsewhere:
Taiwan's Taiex closed up 4.6% at 4,418.
India's Sensex closed up 2.2% at 9,162.
with files from other wire services
