More optimism about the rapidity of a world economic recovery sent markets in Asia and Australia skyward Thursday, financial and automobile shares leading the charge.
The Nikkei 225 Average leaped 367.87 points, or 4.4%, to 8719.78
Hong Kong’s Hang Seng Index gained an incredible 1,002.43 points, or 7.4%, to end the day at 14,521.49, its highest close since early January, on a rush of buying in market heavyweight HSBC Holdings. The banking major flared up 15.3%
Hopes that the U.S. may ease mark-to-market accounting rules, as well as covering of short sales by traders also contributed to the day's rally, which was accompanied by strong trading volumes. But several analysts retained their cautious outlook, with some saying the markets were ripe for correction after the latest round of gains.
Some analysts were looking to an update later Thursday from the Financial Accounting Standards Board in the U.S. on potential changes to mark-to-market accounting rules.
South Korean and Taiwanese indexes ended at a level they haven't seen since October, while China's Shanghai Composite ended at its highest level since August.
Still, others were wary before the Thursday meeting of the G20 leaders, plus a decision on interest rates from the European Central Bank, and the U.S. non-farm payrolls data Friday.
Auto stocks were up in Japan and Seoul. U.S. auto sales continued sliding in March but the auto makers pointed to a sales rebound in the last week of the month. Toyota Motor Corp. added 5.5%, Honda Motor Co. gained 10.7% and Nissan Motor Co. climbed 13.8% in Tokyo.
In Seoul, Hyundai Motor advanced 4.5%.
The advance came after the Nikkei business daily reported that a Japanese tax law revision, which exempts dividends paid by overseas units from taxation, will likely give major Japanese firms an unexpected boost to their earnings in the year ended March 31.
Toyota, however, said the tax revision won't have a "material impact" on its earnings forecasts.
Among financials, Nomura Holdings climbed 10.2% and Shinsei Bank jumped 22.9% in Tokyo.
Elsewhere, Shinhan Financial Group rose 7.8% in Seoul, United Overseas Bank was trading 6.7% higher in Singapore.
Elpida Memory finished up 12.8% in Tokyo, on top of Wednesday's 14.7% charge, on reports it was considering offering about a 10% stake in the chipmaker to Taiwan Memory - a company being created by the Taiwanese government to bailout local semiconductor firms.
But Taiwanese chipmakers were mixed, with Powerchip Semiconductor Corp. rising 2.3% to extend gains. But Inotera Memories fell 3.1% and Nanya Technology Corp. lost 4.1%.
Elsewhere:
China’s Shanghai Composite Index zoomed 28.18 points, or 1.1%, higher, to 2,576.40
Singapore’s Straits Times Index improved 101.08 points, or 5.9% to 1,803.34
South Korea’s Kospi Composite Index advanced 43.61 points, or 3.5%, to 1,276.97
Taiwan’s Taiex Index added 159.33 points, or 3%, to 5,473.78
New Zealand’s NZX Index shot 16.56 points, or 0.6% higher, to 2,585.80
Australia's S&P/ASX 200 index picked up 100.50 or 2.8 %, to 3,680.20
