Asian markets saw broad but modest gains Wednesday, with strength in commodity plays and upbeat economic data helping to lift Australia's benchmark stock index to its highest level in more than five weeks.
The Nikkei 225 index in Tokyo gained 31.30 points, or 0.3%, to 10,253.14
The Hang Seng Index in Hong Kong settled back 29.32 points, or 0.1%, to 20.876.79.
Weakness in property stocks helped fuel a small decline in the Hong Kong market. But overall, stocks in the Asian region found additional support as concerns over debt-strapped Greece diminished.
Market action "seemed to be revolving around global demand for metals and industrial goods -- some of which would benefit bigger-cap U.S. multinationals and certainly Japan's big industrial firms, in addition to Aussie miners and China's contractors," said one expert.
Indeed, gains in base metal prices on Tuesday buoyed regional commodity plays.
In Australia, "upside momentum in base metals markets (instigated by the Chile earthquake) drove robust gains at the stock specific level, with many of the pure play miners following in the footsteps of the bigger-diversified ones," said another expert.
Rio Tinto rose 2.6% and BHP Billiton and Newcrest Mining each tacked on 1.4% by the close. In Tokyo, Mitsubishi Corp. climbed 2.1%, Mitsui & Co. advanced 2.6% and Sumitomo Metal Mining added 2.5%.
Australian banking stocks also posted gains with Commonwealth Bank up 0.4%, Westpac up 1% and ANZ closing 0.2% higher.
Data earlier in the day showed Australia's economy grew 0.9% in the fourth quarter from the third -- its fastest pace in almost two years, supporting sentiment in the market.
The data also affirmed the Reserve Bank of Australia's decision to hike rates at four of the last five meetings. The GDP growth "supports the RBA's view that the economy is quickly approaching long-term historical average rates of growth, which explains stellar jobs growth over recent months," said one expert.
Also in Sydney, Telstra closed up 0.3%, but the stock remains under pressure after saying on Tuesday it was "very concerned" by draft legislation that could give the government power to allow a planned 43-billion-Australian-dollar National Broadband Network to become a retailer under certain circumstances.
The Japanese market finished with modest gains after a shaky start, with traders torn between profit-taking and easing concerns over Greek fiscal problems. Tachibana Securities strategist Kenichi Hirano said the market was directionless in the absence of fresh catalysts. Technology stocks were mixed as Sony rose 1.3% while NEC Electronics eased 1.5%.
In Taiwan, HTC Corp. lost 2% after iPhone maker Apple sued the Taiwanese handset maker of Google Inc.'s Nexus One phone over numerous alleged patent violations. Apple's two complaints allege HTC devices infringe a total of 20 Apple patents. HTC said Wednesday it doesn't believe the suit poses a material threat to its business.
In Hong Kong, property-developer stocks pressured the market with Cheung Kong Holdings Ltd. down 0.8% and Henderson Land Development Co. losing 2.1%.
In foreign exchange markets, the euro was up against the U.S. dollar and the yen. It was at $1.3623 against the dollar, from $1.3607 late in New York trade, and was fetching 120.96 yen from 120.75 yen. The dollar was buying 88.77 yen compared with 88.75 yen.
CHINA
Financial stocks ended mixed in China with investors concerned that rising inflation could be one of the hot topics to be taken up at the annual National People's Congress that starts Friday, renewing fear of more credit tightening measures.
Shanghai’s CSI 300 Index regained 23.84 points, or 0.7%, to 3,335.08
In Shanghai, China Merchants Bank climbed 0.2% and rose 1.7% in Hong Kong. China Citic Bank fell 0.1% in Shanghai but climbed 0.7% in Hong Kong.
Elsewhere:
Korea’s Kospi index picked up 7.32 points, or 0.5%, to 1,622.44
Singapore’s Straits Times Index was 10.59 points better, or 0.4%, to 2,782.79
Taiwan’s Taiex Index gained 31.90 points, or 0.4%, to 7,629.52
New Zealand’s NZX Index improved 15.28 points, or 0.5%, to 3,198.52
Australia’s S&P/ASX 200 moved up 33.80 points, or 0.7%, to 4,735.70, to mark its strongest closing level since Jan. 22.
