Financial stocks were among the biggest winners in a broad Asian stock-market rally Monday following Friday's sharp selloff.
Investors found refuge in reassurance by the United Arab Emirates central bank that it would support local and international banks exposed to Dubai debt.
In Tokyo, the Nikkei 225 Index regained 264.03 points, or 2.9%, to 9,345.55
In Hong Kong, the Hang Seng Index gained back 687 points, or 3.3%, to 21,821.50
Most financial stocks in the region advanced, rebounding from Friday's selloff.
In Hong Kong, HSBC rose 4.3% after ending Friday down 7.6%. In Australia, National Australia Bank added 6%, while in Japan, Mitsubishi UFJ Financial Group rose 8.6%.
In South Korea, Woori Finance Holdings surged 9.4% after dropping nearly 16% over Thursday and Friday combined
Bucking the trend, Singapore's banks lost ground in late-afternoon trading, led by a 2.3% decline in DBS Group Holdings, on concerns the lender may have the most exposure to Dubai's debt woes.
Shares of real-estate operator Sumitomo Realty & Development jumped 9.1% in Tokyo. Real-estate developers Gemdale Corp. climbed 2.7% and Poly Real Estate Co. rose 2.2% in Shanghai.
In Hong Kong, new listing Sands China fell 10.2% on its debut. The casino operator's "aggressive expansion plan has resulted in heavy indebtedness, and coupled with its unattractive valuation I think the stock will remain underperforming in the near-term," according to one expert.
Still, some Asian markets, including China and Japan, had yet to recoup all of Friday's losses, suggesting that some investors remain wary -- possibly because of continuing concerns about U.S. dollar weakness.
The U.S. dollar recently traded at 85.88 yen, down from 86.75 yen on Friday.
Japanese exporters, which have been hard hit by recent strength in the yen, got some relief as the U.S. dollar managed to stay above the 14-year low versus the yen seen Friday. Toyota Motor rose 4.2% and Sony closed up 2.7% in Tokyo.
CHINA
Chinese shares saw added support after Beijing late Friday said it will maintain an active fiscal policy and moderately loose monetary policy next year, allaying investor concerns over a tightening policy bias.
The Shanghai 300 Composite Index picked up 129.16 points, or 3.8%, to 3,511.67
Elsewhere;
Taiwan’s Taiex index advanced 91.30 points, or 1.2%, to 7,582.21
Singapore’s Straits Times index returned to work, but lost 30.10 points, or 1.1%, to 2,732.12
Korea’s Kospi index strengthened by 31.10 points, or 2%, to 1,555.60
New Zealand’s NZX Index finished 31.09 points, or 1%, higher to 3,125.52
Australia’s S&P/ASX 200 added 129.20 points, or 2.8%, to 4,701.30
