Asian markets ended mixed Tuesday, with Australian shares rising after the country's central bank surprised traders with its decision to keep rates on hold.
The Reserve Bank of Australia's decision to hold rates after raising them in the previous three meetings also weighed on the foreign-exchange markets, sharply dragging down the Australian dollar.
In Tokyo, the Nikkei 225 Index advanced 166.07 points, or 1.6%, to 10,371.09
Hong Kong’s Hang Seng Index gained 28.43 points, or 0.1%, to 20,272.18.
Auto makers pushed Japanese stocks higher as Toyota Motor took steps to fix recalled vehicles, though their South Korean rivals declined in Seoul after a string of recent gains.
In Tokyo, auto makers advanced on Toyota Motor's announcement of plans to fix problematic accelerator pedals. The auto maker's shares, which were heavily sold recently after it recalled vehicles in the U.S. and Europe because some gas pedals were sticking, jumped 4.5%.
Honda Motor, which also announced a worldwide recall of 646,000 compact cars to examine defective window switches, advanced 2.4%, while Nissan Motor gained 3.5%.
But South Korean auto shares lost ground, with Hyundai Motor giving up 3.5% and Kia Motors falling 2.2% on profit-taking, despite data showing on Monday that January car sales jumped 64% from a year earlier.
Resources plays around the region rallied, following in the footsteps of U.S.-listed counterparts. Among Sydney heavyweights, BHP Billiton climbed 3.2% and Rio Tinto surged 5.3%.
Australia-listed copper company PanAust added 9.1% after Citigroup said in a report that copper remains the most "structurally tight" commodity long term, tipping good value in Australian copper names. Hong Kong's Jiangxi Copper also gained 1.7%.
Australia's MacArthur Coal jumped 13% after Citigroup upgraded the stock to "buy" from "hold" following its recent selloff.
An overnight increase in crude-oil prices helped energy producers, with Woodside Petroleum tacking on 3.9%, Japan's Inpex rising 2.9% and Hong Kong's Cnooc advancing 1.1%.
The euro was fetching $1.3917 U.S., from $1.3930 U.S. late in New York Monday, and 126.09 yen from 126.29 yen. The dollar was at 90.57 yen against the yen, compared with 90.65 yen.
Lead March Japanese government bond futures were down, tracking lower Treasury prices Monday.
The contract was down 0.28 at 139.12 points, while the 10-year cash JGB yield was up 1.5 basis points at 1.345%.
CHINA
In Shanghai, poor market sentiment amid concerns of monetary tightening weighed on debutante China Erzhong Group Deyang Heavy Industries.
The machinery maker's shares finished at 8.15 yuan ($1.20 U.S.), compared with its initial public offering at 8.50 yuan, also hurt by worries about expensive valuations.
The Shanghai 300 Composite Index dropped 6.52 points, or 0.2%, to 3,146.19
Elsewhere:
Korea’s Kospi Index was 10.63 points, or 0.7%, lower to 1,595.81
Taiwan’s Taiex index subsided 95.06 points, or 1.3%, to 7,429.61
Singapore’s Straits Times index fell 6.52 points, or 0.2%, to 2,720.87
New Zealand’s NZX Index lost 3.60 points, or 0.1%, to 3,147.37
Australia’s S&P/ASX 200 added 81.20 points, or 1.8%, to 4,605.30.
