Asian shares finished higher Monday as an improvement in U.S. consumer sentiment helped provide support for many of the region's exporters, including auto makers and technology companies in Japan.
Tokyo’s Nikkei 225 jumped 174.60 points, or 1.8%, to end the week’s first session at 9,879.85
In Hong Kong, the Hang Seng index bounced 179.53 points, or 0.9%, to 20,051.91
In Japan, auto makers gained ground along with other exporters, getting a boost from the weaker yen, with Toyota Motor Corp. closing 1.2% higher and Nissan Motor Co. tacking on 2.4%.
Honda Motor Co. jumped 4% despite continued labor unrest at some of its China factories as short-covering emerged after the stock fell 6.2% over the past two weeks. While a number of workers at a plant in southern China agreed to a new wage and benefits package offered by the factory's management and returned to their jobs to resume some production Saturday, "many" are still refusing to work, a spokesman for the company said.
In Hong Kong, China auto stocks rose after the Ministry of Commerce said Sunday it will extend its subsidies for the trade-in of old, polluting vehicles for newer, more efficient models to the end of this year. The subsidies were originally set to expire on May 31. Geely Automobile Holdings Ltd. added 5.3%, while Dongfeng Motor Group Co. advanced 6.8%.
Among South Korean auto plays, Hyundai Motor Co. added 3.3% on expectations for the launch of new models in the second half of the year, but Kia Motors Corp. shed 3.1% after the stock's outperformance so far this year.
The Nasdaq's gains Friday buoyed tech exporters in Japan, leading the overall market higher.
Tokyo Electron Ltd. added 1.3%, Advantest Corp. gained 2.1% and Sony Corp. rose 1.8%.
Technology names and financials in Taiwan also logged gains after negotiators from Taiwan and China reached an agreement Sunday on the content and structure of a wide-ranging trade pact. Taiwan Semiconductor Manufacturing Co. rose 2.5%.
In Korea, builders were among the bigger advancers, with Daewoo Engineering & Construction Co. up 7.4% and GS Engineering & Construction Corp. adding 5.2%.
Daelim Industrial Co. closed up 2.4% after Friday's news it won a 1.097 trillion won ($893 million U.S.) gas plant order in Kuwait and Daewoo Shipbuilding & Marine Engineering Co. also added 2.4% after it won a 694-billion won offshore plant order in Europe.
In foreign exchange markets, the euro was stronger against the U.S. dollar and the Japanese yen after Friday's better-than-expected U.S. consumer sentiment data for June.
The euro was at $1.2164, compared with $1.2077 in late New York trade Friday, and at 111.76 yen, from 110.65 yen. The dollar was at 91.85 yen, from 91.62 yen.
The South Korean won was up sharply against the U.S. dollar, helped by the rise in Korean stocks. Authorities announced Sunday comprehensive measures to ease the adverse impact of rapid capital flows on the local economy, including new rules to limit local and foreign banks' foreign exchange forward positions.
The news, however, was "broadly in line with what markets had anticipated," analysts at the Royal Bank of Scotland said in a research note.
The dollar was at 1,221.6 won, compared with 1,246.1 won late in Seoul on Friday
Elsewhere;
Shanghai markets have the first portion of the week off for the Dragon Boat Festival.
Singapore’s Straits Times Index moved 21.78 points, or 0.8%, higher to 2,818.07
Korea’s Kospi index put on 15.26 points, or 0.9%, to 1,690.60
Taiwan’s Taiex index added 87.91 points, or 1.2%, to 7,387.40
New Zealand’s NZX index improved 1.40 points, or 1.3%, to 3,041.26
Australia’s S&P/ASX 200 also had the day off
