Most Asian markets advanced Thursday after the U.S. House of Representatives approved a $14 billion loan package for the auto industry and as South Korea cut its benchmark interest rate by a hefty one percentage point in response to a rapid economic slowdown.
The benchmark Nikkei 225 Stock Average closed up 60.3 points or 0.7% at its intraday high of 8,720.6 while the benchmark Hang Seng Index closed up 36.16 points or 0.23% at 15,613.90.
On the economic front, Japan's Ministry of Finance reported that foreigners dumped a net 399.7 billion yen worth of Japan-based stocks for the week of November 30 to December 6. Foreigners were also sellers of a net 84.5 billion yen in Japanese bonds and notes. Meanwhile, Japanese residents remained net buyers of foreign-based stocks in the week, having acquired a net 497.5 billion yen worth of equities. They remained net sellers of foreign bonds and notes for the third straight week, having dumped a net 401.8 billion yen worth.
A stronger yen pressured exporters. Canon lost 0.7% and Hitachi fell 2.4%. However, automakers held on to their gains. Honda jumped 7.9% and Toyota Motor climbed 4.8%.
Shippers rose on higher Baltic Dry Index. Mitsui O.S.K. Lines surged up 7.8%, Kawasaki Kisen soared 8.4%, and Nippon Yusen rocketed 8.7%.
Banks gained after Sumitomo Mitsui Financial Group said that it would raise additional capital, lifting sentiment in the sector. Sumitomo Mitsui Financial Group surged 9.6%, top bank Mitsubishi UFJ Financial Group rose 6.8% and second-ranked Mizuho Financial Group advanced 4.1%.
Bucking the trend, KDDI Corp fell 4.5%, Fast Retailing lost 2.6%, and cosmetics and personal care product maker Kao Corp dropped 1.9%.
CHINA
The Chinese stock market closed lower as investors locked in profits after latest economic reports provided more proof that the economy is slowing down. The benchmark Shanghai Composite Index fell 47.44 points or 2.28% to close at 2,031.68 and the Shenzhen Composite Index for China's smaller second exchange declined 2.49% to 608.8.
The market finished in negative territory despite consumer inflation falling to 2.4% in November, its lowest level in nearly two years, and the government pledging Wednesday, following a high-level planning meeting, to take steps to support economic growth, exports and job creation in 2009. Trade figures released Wednesday showed a 2.2% drop in exports, the first decline in seven years.
Resources stocks fell on the back of more evidence that the economy is slowing. Aluminum Corp of China lost 2.5%, and Jiangxi Copper and China Petroleum & Chemical Corp sank 3.3% each. Market heavyweight PetroChina declined 1.5%.
In the banking sector, Industrial & Commercial Bank of China fell 2.7%, Bank of China shed 2.7%, and China Construction Bank dropped 3.1%.
China Southern Airlines and China Eastern Airlines rose by the daily of 10% after the two struggling state-owned carriers said that they each received a 3 billion yuan capital injection from government.
Among property developers, China Vanke slid 1.0% and COFCO Property slipped 0.2%, while Poly Real Estate Group advanced 0.3% and Gemdale closed unchanged.
Elsewhere:
The benchmark Korea Composite Stock Price Index or KOSPI climbed 8.56 points or 0.75% to close at a six-week high of 1,154.43.
Taiwan's Taiex closed flat at 4,655.
Singapore's STI closed down 1.5% at 1,794.
Indonesia's Jakarta Composite Index closed flat at 1,316.
Malaysia's KLCI closed up 6.0 points at 860.
Australia's S&P/ASX 200 gave up 1.2% to 3,598.
New Zealand's NZX 50 index rose 0.6% to 2,726.71.
with files from other wire services
