Asian markets ended mostly higher Tuesday, with Japanese shares rebounding from the previous session's tumble as overnight gains on Wall Street and a weaker yen spurred risk appetite.
The Nikkei 225 index in Tokyo crept up 15.56 points, to 10,217.62, but analysts remained cautious on worries the yen's recent strength may hit exporters' repatriated earnings. Shares of Canon gained 2.9%, while Honda Motor added 0.5%.
Hong Kong markets were closed for the morning session due to a typhoon warning, and opened only for a 90-minute trading session in the afternoon. In Hong Kong, the Hang Seng index fell 65.83, or 0.3%, to 20,866.37.
Japan Airlines ended 3.4% lower after Monday's 8% surge, after the Nikkei reported the airline has decided to scrap a further 20 or so international flights through fiscal 2011, starting next month. Meanwhile, Reuters reported Air France-KLM is in talks with JAL to form an alliance in which the European company would inject a few hundred million dollars and take a minority stake.
Shares of NEC Corp. rose 0.7%, Hitachi gained 1% and Casio Computer slipped 0.2% after they agreed to merge their mobile-phone operations.
Banks were also higher in Seoul, with KB Financial rising 1.4% and Shinhan Financial gaining 4.5%.
Telstra shares fell 4.3% in Sydney as the government looked to pass legislation to impose a strong functional separation on the company if it did not voluntarily agree to a structural separation. This follows government plans to introduce a fiber-to-the home network, which would make much of the company's fixed-line network redundant.
Traders in foreign-exchange markets were looking to U.S. retail-sales data due later for cues. The euro was at 133.09 yen, from 132.98 yen in New York and at $1.4609 U.S., from $1.4612 U.S.
The U.S. dollar was at 91.10 yen, from 91.00 yen, supported by Japanese importers buying on their regular settlement day.
Japanese government bonds were down as U.S. Treasurys fell in New York and demand at an auction of 20-year bonds failed to meet market expectations. The lead December futures contract fell 0.29 at 138.97 points.
CHINA
Chinese stocks rallied, helped by data showing an increase in foreign direct investment in August for the first time in 11 months.
Shanghai’s 300 Composite Index gained 9.25 points, or 0.3%, to 3,302.64.
Chinese tire makers, which fell sharply Monday, recovered during the session, with Double Coin Holdings swinging back to rise by the 10% daily limit, while Aeolus Tyre gained 3.5%.
The market was helped by data showing that China received foreign direct investment of $7.5 billion U.S. in August, 7% higher than in the year-earlier month. Still, analysts said the market may be running out of steam in the near-term, having risen in 10 of the previous 11 sessions
Elsewhere:
Singapore’s Straits Times Index subsided 1.34 points to 2,638.40.
South Korea’s Kospi index regained 18.49 points, or 1.1%, to 1,653.40
Taiwan’s Taiex tacked on 89.31 points, or 1.2%, to 7,346.26
New Zealand’s NZX 50 Index was down 29.05 points, or 0.9%, to 3,099.63
Australia’s S&P/ASX 200 improved 9.20 points, or 0.2%, to 4,540.30
