Asian markets extended gains Tuesday, with financials again leading the rally after major U.S. indexes jumped more than 6% overnight on the Treasury's plan to rid banks of bad assets.
Tokyo’s Nikkei 225 Index veered ahead 272.77 points, or 3.3% to 8,488.30, on top of Monday’s big hike
Hong Kong's Hang Seng Index surged 462.92 points, or 3.4%, to 13,910.34, also after a huge gain on Monday.
Despite the strong showing, some analysts warned that investors aren't out of the woods yet.
But the rally in Asian financials was modest compared with the U.S. The Dow Jones futures were also pointing to a mildly lower opening Tuesday.
Some observers said they expect investors in Japanese shares to pocket profits soon, as the Nikkei advanced for the seventh time in nine sessions Tuesday.
In Hong Kong, market heavyweight HSBC Holdings surged 9.8%, providing a strong boost to the broader market.
Elsewhere, Australia & New Zealand Banking Group climbed 1.6% in Sydney and 4.9% in Wellington; Mizuho Financial Group gained 5% and Shinsei Bank soared 10.7% in Tokyo. KB Financial Group added 4.6% in Seoul and DBS Group Holdings jumped 5.5% in Singapore afternoon trading.
Korea Exchange Bank gained 2.2%, with the stock also helped by a Deutsche Bank rating upgrade to buy from hold . The analysts cited reduced risk that KEB may bail out Hynix Semiconductor, to which it has large equity and loan exposure. Hynix shares rose 1%.
Commodity plays were helped by stronger base metal prices, with Rio Tinto up 5.6% and BHP Billiton 1.4% higher in Sydney.
Australia's OZ Minerals fell 9.3% as the Foreign Investment Review Board extended its review of China Minmetals' proposed A$2.6-billion ($1.8-billion U.S.) takeover bid.
Shares of Woolworths fell 0.9% after Bank of America-Merrill Lynch cut the retailer's rating to neutral from buy on high capital spending and high valuations.
In currency trading, the Japanese yen was trading lower, with the euro briefly rising as high as 134.51 yen. The euro was recently at 133.28 yen, from 132.26 yen in New York, while the U.S. dollar was up at 98.01 yen, from 96.91 yen.
Among other yen cross rates, the Australian dollar hit a high of 69.62 yen, while the British pound rose as high as 144.84 yen. Recently, the Aussie was at 69.28 yen, while the pound fetched 144.22 yen. The yen is viewed as a safe haven and tends to be sold as sentiment improves.
Asian currencies gained at the dollar's expense, with the U.S. currency down at 1,383 South Korean won, from 1,391.60 won Monday.
Elsewhere:
China’s Shanghai Composite Index added 12.39, or 0.5% at 2,451.78
Singapore’s Straits Times Index gained 42.26 or 2.5%, to 1,706.34
South Korea’s Kospi Composite Index picked up 22.20 points, or 1.9%, to 1,221.70
Taiwan’s Taiex Index sailed ahead 118 points, or 2.3% to 5,242.18
New Zealand’s NZX Index gained 43.91 points, or 1.7% to 2,635.33
Australia's S&P/ASX 200 index tacked on 29.70 or 0.8% to 3,580.00
