Asian markets advanced Wednesday in the wake of a Wall Street rally, with Japanese exporters such as Honda Motor Co. surging on the yen's weakness.
Sentiment was also aided after U.S. President Barack Obama exuded confidence in his maiden address before a joint session of Congress, laying bare the challenges facing the economy
In Tokyo trading, the benchmark Nikkei 225 Average gained back 192.66 points, or 2.7%, to end Wednesday’s trading at 7,461.22, with a Nikkei newspaper report that the government was considering direct stock purchases also aiding the market.
Exporters raced ahead as the U.S. dollar broke above the 97-yen level, with Honda surging 8.1%, Elpida Memory Inc. jumping 9.8% and Sony Corp. spiking 8.1%.
In Hong Kong, the Hang Seng Index climbed 206.56, or 1.6%, to 13,005.08. But the index finished well below the day's peak, after the government predicted the economy would shrink by 2% to 3% this year, and promised to boost spending to support the economy.
Some experts expect the Hong Kong economy to contract by 4% this year, with risks still to the downside.
In the property sector, Cheung Kong (Holdings) gained 1.1% and Sun Hung Kai Properties advanced 1.5%, giving up early gains and underperforming the broad market.
Banking major HSBC Holdings climbed 2.7%, recovering some of its recent declines.
Financial stocks also gained broadly across the region, mirroring overnight advances on Wall Street. Korea Exchange Bank climbed 3.9% in Seoul, Mizuho Financial Group rose 3.8% in Tokyo and Fubon Financial Holding Co. jumped 3.5% in Taipei.
CHINA
China Asset Management Co., the country’s biggest fund manager, said it’s seeking investments in the U.S. and Europe that stand to gain from the growth in emerging markets.
The fund, which manages $26 billion U.S. of assets, said the stock market slump has offered bargains in these countries, and it favors companies based on their management, long-term earnings outlook and the ability to generate cash flow.
Elsewhere:
China’s Shanghai Composite Index was up 2.4 points, or 0.1% to settle at 2,304.25
Singapore’s Straits Times Index nosed up 2.35 points, or 0.2%, to 1,616.79
Taiwan’s Taiex Index gained 63.50 points or 1.4%, to 4,493.73
South Korea’s Kospi picked up 3.20 points or 0.3% to 1,067.08
New Zealand’s NZX 50 Index advanced 12.29 or 0.5%, to 2,499.82
Australia’s S&P/ASX 200 Index bucked the trend, losing 4.1 points or 0.1% to 3,327.50
