Exporters' shares in Japan were among the big winners in Asia Tuesday, when the yen fell before Japan's central bank at an unscheduled meeting unveiled further steps to ease monetary policy.
In Tokyo, the Nikkei 225 Index added 226.65 points, or 2.4%, to 9,572.20
In Hong Kong, the Hang Seng Index gained 291.65 points, or 1.3%, to 22,113.15
The central bank announced, after trading in Japan closed, that it would introduce a new funds-supplying operation to encourage a further decline in longer-term interest rates. The move was aimed at maintaining the country's fragile economic recovery, in light of deflationary pressures and a soaring currency.
The Bank of Japan kept its overnight call rate target at 0.1% but also set up a new 10-trillion-yen ($120 billion U.S.) lending facility, which will accept as collateral Japanese government bonds, corporate bonds, commercial paper and deeds on loans.
The U.S. dollar gave back some gains against the Japanese yen that it saw in the runup to the meeting. The buck was trading in the upper-86-yen range after the central bank announced its additional easing steps.
Exporters, which had declined early on in the trading session, climbed when the yen slid, with Sony closing up 1.9%, Canon up 2.1% and Toyota Motor 2.3% higher in Tokyo.
Banks in Japan closed higher, in tune with gains in Tokyo.
Mitsubishi UFJ Financial Group closed up 3.1% in heavy volume after saying Monday that it will raise as much as 1.056 trillion yen ($12.24 billion U.S.) by issuing new shares, including an over-allotment option, in what would be the biggest-ever share sale by a Japanese financial institution.
Japan's largest bank by assets and market capitalization had already announced a plan to raise up to one trillion yen by issuing common shares earlier last month.
Australian shares managed to hold up even after the Reserve Bank of Australia raised its cash rate target by 0.25 percentage point to 3.75%, taking back more of its emergency cuts as the economy headed toward recovery in 2010.
National Australia Bank finished down 0.2% and Rio Tinto fell 0.4%, while Westpac Banking rose 0.2% and BHP Billiton added 0.1% in Sydney. However, gains in Telstra, up 0.9%, and Newcrest Mining, up 1.7%, continued to support the overall market.
South Korea's banks continued their recovery from Friday's sharp falls. KB Financial closed up 1.7% and Shinhan Financial was 0.9% higher.
DBS Group Holdings shed 0.8% in Singapore's late trading, retreating from gains as concern about its Dubai exposure resurfaced.
CHINA
The Shanghai 300 Composite Index picked up 49.16 points, or 1.4%, to 3,560.83
In China, Zijin Mining Group jumped 6.5% after the gold producer said it signed an agreement to take over Indophil Resources NL of Melbourne for 545 million Australian dollars ($498 million U.S.)
Elsewhere;
Taiwan’s Taiex index advanced 67.02 points, or 0.9%, to 7,649.23
Singapore’s Straits Times index reversed course and gained 38.83 points, or 1.4%, to 2,770.95
Korea’s Kospi index strengthened by 14.12 points, or 0.9%, to 1,569.72
New Zealand’s NZX Index finished 21.08 points, or 0.7%, higher to 3,146.60
Australia’s S&P/ASX 200 added 17.70 points, or 0.4%, to 4,719.00
