Asia shares ended mostly higher Wednesday, with indexes in South Korea and Singapore posting catch-up gains after an extended holiday break.
Tokyo and Sydney were also higher, as semiconductor makers, banks and mining companies benefited from some improvement in investor sentiment. But the market gains trailed Tuesday's strong performance in Tokyo and Sydney.
Trading volume in the region was light, with markets in China, Hong Kong and Taiwan still shut for the extended Chinese New Year break.
Tokyo’s Nikkei 225 Index advanced 45.22 points, or 0.56% to 8,106.29.
Korean markets were led by chip stocks as investors there had their first chance to react to Friday's news that German memory-chip maker Qimonda had filed for insolvency as the global slump in memory-chip prices scuppered a bailout plan.
That was seen as positive for the sector by potentially reducing oversupply, though analysts at UBS said "stability in demand is a prerequisite to an industry recovery."
Samsung Electronics was up 7.9%.
Shares of Advantest were 5% higher before its earnings release. After the market closed, the maker of testing equipment for use in the semiconductor industry said it posted a quarterly loss of $87.5 million.
Financial stocks gained in Tokyo with hopes for U.S. action to support its banking sector and thus inject confidence into global markets.
Sumitomo Mitsui Financial Group was up 1.2% and Mitsubishi UFJ Financial Groupended 1.2% higher.
But Sumitomo Mitsui said after the close of trading that its net income in the April-to-December period tumbled 74% because of losses from equity holdings and higher credit costs.
Also, Nomura Holdings fell 2.2% after saying Tuesday it had a loss of nearly $3.8 billion in the quarter ended December, partially due to losses from Icelandic investments and financier Bernard Madoff's alleged Ponzi scheme as well as weak financial markets.
Car makers were largely flat in Tokyo after some recent gains, with Toyota Motor ending little changed
In Sydney, bank and mining shares were mostly higher. Westpac rose 5.2% and ANZ up 3.9%. Lihir Gold gained 4% after its fourth-quarter report surpassed market expectations.
But mining giant Rio Tinto fell 3.9% after it said it wouldn't rule out a potential equity issue to help pay down its debt.
Property company Westfield Group shares fell 1% after it warned its 2009 earnings were likely to be flat at best amid deteriorating retail conditions in many of its key markets.
And building-products maker Boral dropped 15% after it slashed its annual earnings guidance 40%, pointing to worsening housing-market conditions in the U.S., Australia and Asia. That weighed on its peers, with James Hardie Industries down 6.6%.
Australia stocks were also boosted by expectations the Reserve Bank of Australia will further loosen money policy next week. Data on Wednesday showed consumer prices dipped 0.3% in the fourth quarter, marking the first deflation two years.
Elsewhere:
Markets in Shanghai, Hong Kong and Taiwan continued with their Lunar New Year holiday.
Korea’s Kospi Index galloped ahead 64.58, or 5.9% to 1,157.98
Singapore’s Straits Times Index went straight up, by 80.85 points, or 4.8%, to 1,766.08
In Australia, the All Ordinaries 200 Index continued its upward trend, picking up 51.5 points, or 1.5%, to 3,495.5
New Zealand shares were ahead 12.04 points, or 0.44%, to 2,747.90
