Chinese stocks staged a big rebound Thursday, recouping their hefty losses from the previous session as analysts said they remained confident about earnings and economic growth prospects in spite of a sharp recent correction.
Shanghai’s 300 Composite Index recovered 129.81 points, or 4.3%, to 3,144.39, to gain back much of the 5% it lost on Wednesday.
Most other regional markets ended higher as well, with energy producers getting a lift after crude-oil prices topped $72 a barrel, though Taiwanese shares lost ground on concerns about a cabinet reshuffle.
The Nikkei 225 index in Tokyo increased 179.41 points, or 1.8%, to close at 10,338.41.
In Tokyo, All Nippon Airways shares climbed 4.4% following a ratings upgrade from Mitsubishi UFJ Securities. Technology and property stocks also posted big gains, with Elpida Memory rising 10% and Sumitomo Realty & Development up 4.4%.
Analysts said they expect the Japanese stocks to stay within a tight range, with little in the way of economic indicators on the horizon.
In Hong Kong, the Hang Seng index grew 374.63 points, or 1.9%, to 20,326.86, after dwelling below the psychologically important 20,000 barrier for much of the week.
The gains in Hong Kong came despite a 0.2% fall in shares of market heavyweight China Mobile, after reporting a sharp slowdown in first-half profit on increased competition and a fall in revenue earned per subscriber.
Energy stocks were higher across the region as crude-oil prices built on the rally in New York. The front-month September contract was recently up eight cents at $72.50 U.S. a barrel on Globex, after rising $3.23 on the New York Mercantile Exchange.
Inpex Corp. rose 2.9% in Japan and Woodside Petroleum soared 7.3% while BHP Billiton added 1.1% in Sydney. PetroChina jumped 6.9% in Shanghai and 2.7% in Hong Kong.
Taiwan shares declined after Premier Liu Chao-shiuan said Wednesday he would decide next month whether to reshuffle the cabinet and accept resignations submitted so far by the defense minister, cabinet secretary and vice foreign minister amid public outrage over the government's response to Typhoon Morakot.
In Australia, Brambles rose 3.6% after saying its fiscal year 2009 net profit fell 30% to a better-than-expected $452.6 million Australian. QBE Insurance jumped 6.4% after it reported a record first half net profit, boosted by strong premium growth and recent acquisitions.
Wesfarmers shares dropped 4.2% and Sims Metal Management tumbled 5.3% on weaker-than-expected reports.
In Seoul, banks were higher, with KB Financial soaring 6.1% and Shinhan Financial Group up 5.4% on reports that six South Korean banks, including the two, had signed an agreement to launch a so-called bad bank to take off bad debts worth five trillion won ($4 billion U.S.) from financial institutions' books.
Foreign exchange markets were taking their cue from equities with the euro rising against the yen as the markets opened higher, fueling risk appetite. The single unit was buying 134.37 yen, compared with 133.80 yen late in New York trade Wednesday. It was flat against the dollar at $1.4235 U.S. from $1.4233 U.S. The dollar was slightly stronger against the yen, at 94.35 yen from 94.00 yen.
Elsewhere:
Singapore’s Straits Times Index advanced 36.79 points, or 1.5%, to 2,559.57
South Korea’s Kospi index put back 30.43 points of what it had lost, or 2%, to finish at 1,576.39
Taiwan’s Taiex lost 55.35 points, or 0.8%, however, to 6,733.23
New Zealand’s NZX 50 Index backpedaled 27.94 points, or 0.9%, to 3,053.11
Australia’s S&P/ASX 200 gained back 3.70 points, to 4,377.50.
