Most Asian markets advanced Monday as investors reacted with relief to the results of the European bank stress tests released on Friday, although the gains were modest as doubts remained over the health of the lenders there.
Japan’s Nikkei 225 Index tacked on 72.70 points, or 0.8%, to 9,503.66
Hong Kong’s Hang Seng Index gained 24.58 points, or 0.1%, to 20,839.91
European shares also rose on Monday as investors got a chance to react for the first time to the results of the stress tests, which found that only seven of the 91 banks tested required additional capital.
Shares of Suzuki dropped 3.2% in Tokyo.
In Sydney, the S&P/ASX 200 hit a fresh four-week high during the session as Wesfarmers' strong fourth-quarter sales and outlook statement added to strength from U.S. stocks on solid earnings reports and the dividend increase from General Electric.
Wesfarmers gained 3.2% after it said fourth-quarter sales at its supermarket arm Coles rose 5.5% from a year ago.
Financials and resources stocks also advanced, with Westpac Banking Corp. rising 1.9%, and Rio Tinto adding 0.6%.
QBE Insurance Group fell 5.6% after saying its insurance profit margin for the six months to June 30 is set to fall to 15.7% from 17.5% last year, while net profit for the period was expected to fall 40%.
Retailers were dragged lower after Harvey Norman reported that its fourth-quarter total sales from Australia were down 4.0% and like-for-like sales fell 3.4%.
The stock was down 3%, while David Jones fell 1.3%.
In Hong Kong, the market was supported by banking major HSBC Holdings and fashion retailer Esprit Holdings after the European bank stress results were released. HSBC added 0.9% and Esprit Holdings gained 2.8%.
Citic Resources Holdings surged 11.8% after the company announced it had submitted a new application to the Hong Kong stock exchange on its proposal to seek a separate listing for its manganese mining operation.
Japanese stocks rose on optimism for domestic firms' earnings while exporters were bolstered by the weaker yen.
Among exporters, Canon climbed 2.5% and Nikon Corp. added 1.9%, while Nintendo Co. gained 1%.
Earlier in the day Japan's exports rose at their slowest pace in half a year in June, climbing 27.7% from the year-earlier period. Exports to Asian countries led the growth.
Softbank Corp. rose 0.9% on a Nikkei report on Sunday that the firm was expected to post a group operating profit of about 190 billion yen ($2.18 billion U.S.) for the April-June quarter, up about 80% from a year earlier.
Energy developer Inpex jumped to end up 4.9% in heavy volume before it priced a planned share issue.
Gains in Seoul were helped by automobile stocks, which advanced as Hyundai Motor's union passed this year's wage terms agreed with the company in a vote held Friday. Hyundai Motor rose 2.2% and Kia Motors added 4.9%.
KB Financial fell 1% on a Korea Economic Daily report, citing unnamed sources in the financial sector, that it recorded a second-quarter loss due to high loan-loss provisions related to sector-wide corporate restructuring and the weak real-estate market. KB Financial officials declined to comment on the report.
In foreign exchange markets, the euro was at $1.2894 from $1.2918 U.S. in late New York trade on Friday, and at 112.35 yen from 112.98 yen. The dollar was at 87.14 yen from 87.45 yen.
CHINA
Chinese metals stocks surged after a report from the China Securities journal said the government planned to limit annual production of 10 nonferrous metals to a combined 41 million metric tons by 2015, citing details from the nonferrous metals industry's 12th five-year draft plan.
Shanghai’s CSI 300 Index gathered 17.98 points, or 0.6%, to 2,811.06
Aluminum Corp. of China soared 6.4% and Shandong Nanshan Aluminium Co. climbed 3%.
The day's advance marks the seventh straight for the CSI 300 index, which measures performance of 300 highly-capitalized stocks traded in Shanghai and Shenzhen.
Elsewhere;
Singapore’s Straits Times Index slid 6.48 points, or 0.2%, to 2,966.99
Korea’s Kospi index improved 11.01 points, or 0.6%, to 1,769.07
Taiwan’s Taiex Index added 26.23 points, or 0.3%, to 7,787.45
New Zealand’s NZX index grew 26.28 points, or 0.9%, to 3,021.19
Australia’s S&P/ASX 200 picked up 27.70 points, or 0.6%, to 4,486.10
