Asian markets ended higher Tuesday as a strong rebound in Chinese shares from one-year lows helped push several markets higher, while hopes for upbeat corporate results helped lift South Korean, Indian and Taiwanese stocks.
Japan’s Nikkei 225 average gained 71.26 points, or 0.8%, to 9,338.04
Hong Kong’s Hang Seng index jumped 241.92 points, or 1.2%, to 20,084.12
Nissan Motor jumped 3.2% and Sony Corp. added 1.3%, with both stocks erasing early losses.
Mitsui & Co. ended up 3.3%, also reversing initial weakness in the upbeat market.
The stock initially declined after The Times of the U.K. reported Tuesday, citing people familiar with the matter, that the U.K. government is making contingency plans for a possible collapse of BP PLC as worries grow over the Gulf of Mexico oil spill.
Mitsui & Co. owns 70% of Mitsui Oil Exploration, which has a 10% stake in the BP project.
Australian shares advanced as banks jumped on views the sector had been oversold recently. Westpac Banking Corp. added 3% and Commonwealth Bank of Australia gained 2.3%. Mining shares also gained on the back of the advance in Shanghai.
The central bank left its policy rate unchanged at 4.5%, flagging concerns over the inflation outlook and uncertainties over growth in China and elsewhere. BHP Billiton added 0.5% and Macarthur Coal climbed 0.7%.
South Korean shares advanced, helped by hopes for strong corporate earnings. Samsung Electronics , which is due to issue profit guidance Wednesday, climbed 1%. Kia Motors rose 2.6% and Hyundai Motors jumped 4.6%.
In Taipei, HTC Corp. ended 5% higher before it declared second-quarter results.
In foreign-exchange markets, the yen dropped against U.S. dollar and the euro on concern ahead of the nation's Upper House elections, despite news that China has increased its purchases of Japanese government bonds. Data from Japan's ministry of finance showed Tuesday China bought 541 billion yen ($6 billion U.S.) worth of Japanese securities from January through April.
The single currency was fetching 110.74 yen from 110.02 yen late Monday in Toronto, and $1.2594 from $1.2541 U.S. The dollar was buying 87.89 yen from 87.75 yen.
CHINA
Shanghai’s CSI 300 Index regained 50.25 points, or 2%, to 2,562.90
Pharmaceutical, consumer and banking shares paced the advance, with Beijing Double-Crane Pharmaceutical rising 3.9% and Tsingtao Brewery jumping 4.6%. Banking shares also advanced, with China Citic Bank gaining 3.9% and China Construction Bank rising 2.9%.
But some analysts were more optimistic in their outlook, with one strategist writing in a note that he expected Shanghai-listed A-shares of Chinese companies, which have underperformed their Hong Kong-listed H-shares so far this year, to outperform over the next three months.
Elsewhere;
Singapore’s Straits Times Index picked up 24 points, or 0.8%, to 2,868.02
Korea’s Kospi index moved ahead 9.57 points, or 0.6%, to 1,684.94
Taiwan’s Taiex Index leaped 108.52 points, or 1.5%, to 7,548.48
New Zealand’s NZX index added 5.06 points, or 0.2%, to 2,952.40
Australia’s S&P/ASX 200 put on 54 points, or 1.3%, to 4,276.10
