Asian shares were higher Friday with the resources and energy stocks leading gains in a host of markets, including Japan and Hong Kong.
Tokyo’s Nikkei 225 gained 123.26 points, or 1.3%, to 9.762.98
In Hong Kong, the Hang Seng index moved up 335.34 points, or 1.7%, to 19,431.37
Sentiment got a boost after China's foreign-exchange regulator, the State Administration of Foreign Exchange, on Thursday denied reports that it's reviewing its holdings of euro-zone debt.
Trading volumes were relatively thin ahead of the weekend and Monday's bank holiday in the U.S., but traders said the subdued activity also suggests that investors remain cautious despite attractive valuations in many markets after the recent sharp losses.
Financials were leading a broad-based rally in Australian shares. Major banks were up between 2.0% and 3.2%, led by Westpac rising 3.2%. The resources sector was underperforming slightly after Thursday's solid gains, with BHP Billiton up 0.6% and Rio Tinto rising 1.4%.
Bucking the market, shares of Virgin Blue Holdings plummeted 26.7% after the airline on Friday stunned the market by slashing its annual earnings guidance by up to 75%. It was the second downgrade in a month, which the airline blamed on a fall in bookings in leisure travel.
About three weeks ago, Virgin narrowed its pretax earnings guidance to the lower end of its A$80 million-A$110 million forecast, but is now expecting an outcome in the A$20 million to A$40 million range.
Shares of U.K. insurer Prudential PLC were suspended in Hong Kong pending the release of material information. The suspension comes after the Wall Street Journal reported, citing people familiar with the matter, that Prudential is in talks to cut the price of its $35.5-billion U.S. acquisition of American International Group Inc.'s largest Asian life-insurance unit, AIA.
The report said the talks are focused on finding a price that would be acceptable to both Prudential's restive shareholders and AIG.
Resources and energy plays were supporting many of the regional markets after oil prices rebounded on Thursday.
Gains in mining and oil plays were driving the Tokyo market higher with the mining sector up 2.9% and the oil sector 1.2% higher. In Seoul, oil refiners SK Energy and S-Oil rose 6.5% and 2.5%, respectively.
The Japanese market was also enjoying support from technology and exporter stocks. Softbank, which markets Apple Inc.'s iPad in Japan, rose 1.9%, while Toshiba, which supplies flash memory chips for Apple, rose 2.6%. The iPad launched in Japan Friday.
Sony advanced 2.9%, as investors welcomes news on Thursday that it will release its electronic book reader in Japan by the end of this year, and set up an e-book content distribution business with three local firms.
In South Korea, automakers were rising on strong earnings expectations; Hyundai Motor was up 2.9% and Kia Motors rose 1.6%.
In foreign exchange markets, the euro was slightly weaker on profit-taking following its rebound on Thursday after China calmed investor jitters over its exposure to euro-zone debt. The single currency was fetching $1.2295 against the U.S. dollar, from $1.2356 late in New York on Thursday, and was at Y112.05 against the yen from Y112.30. The dollar was buying Y91.11, from Y90.90.
CHINA
In Shanghai, China Petroleum & Chemical rose 0.8% and China Shenhua Energy gained 1.1%, while Cnooc jumped 4.2%, Chalco rose 4.0% and Shenhua was 3.1% higher in Hong Kong.
Shanghai’s CSI 300 slid 9.68 points to 2,850.30
Elsewhere;
Singapore markets had the day off
Korea’s Kospi index advanced 15.28 points, or 1%, to 1,622.78
Taiwan’s Taiex index progressed 52.16 points, or 0.7%, to 7,295.32
New Zealand’s NZX 50 Index tacked on 12.91 points, or 0.4%, to 3,047.75
Australia’s S&P/ASX 200 gained 78.30 points, or 1.8%, to 4,457.50
