Chinese and Hong Kong stocks rebounded after Beijing’s announced inflation-cooling measures proved less harsh than expected, while Japanese stocks ended at a four-month high as the yen’s decline against the euro spurred buying interest.
Tokyo’s Nikkei 225 Index leaped ahead 201.97 points, or 2.1%, to 10,013.60 Thursday, notching its first finish above the 10,000-point level since June.
The Tokyo market came to life in late morning trade, partly as the yen’s fall against the euro triggered futures buying. Traders also said a broader improvement in sentiment spurred sharp rises in banking shares.
Mizuho Financial Group gained 3.9%, Nomura Holdings spiked 4.7% and Sumitomo Mitsui Financial Group added 3.4%.
Mitsubishi Electric Corp. advanced 4% on a Nikkei report that the company aims to lift its consolidated sales to four trillion yen ($48 billion U.S.) by early fiscal 2013, representing a rise of more than 10% from its current fiscal-year forecast.
Hong Kong’s Hang Seng Index rebuilt 422.93 points, or 1.8%, to 23,637.40, after suffering its biggest one-day percentage fall since late June Wednesday.
In Hong Kong, shares of Jiangxi Copper jumped 5.3% and Dongfeng Motor Group Co. surged 9.3%.
In Sydney, the market was a tad higher after Wednesday’s drop, although demand was scarce as investors awaited an update on the Irish debt situation.
Atlas Iron shares rose 4.4% on news that the company and BHP Billiton have started discussions about cooperating on iron-ore haulage and port access in Australia’s Pilbara region. BHP shares added 0.8%.
In Seoul, Hyundai Engineering & Construction rose 1% after losing more than 18% in the previous three sessions in the wake of Hyundai Group’s selection as the preferred bidder for a controlling stake in the builder. The selling was fueled by concerns that Hyundai Group will have to resort to heavy borrowing to fund the acquisition.
GS Engineering & Construction rose 1.9% after winning a $2.9-billion U.S. order for a fertilizer plant in Australia. SK Telecom Co. fell 1.5% after confirming that it has been notified of a probe into the company by the National Tax Service.
In foreign-exchange markets, the euro got some respite after weak U.S. inflation data bolstered the case for the Fed to keep supporting the U.S. economy. Indications that some resolution might be in sight for Ireland’s debt troubles also lifted the single currency.
The single currency was fetching $1.3594 U.S. compared with $1.3520 U.S. late Wednesday, and at 113.19 yen versus 112.59 yen. The dollar was buying 83.31 yen, compared with 83.28 yen.
CHINA
On mainland bourses as well as in Hong Kong, stocks recovered from a string of recent losses after the State Council Wednesday said it will initiate a series of measures to stabilize prices, mainly through administrative control, on commodities and energy prices.
Shanghai’s CSI 300 Index regained 44.06 points, or 1.4%, to close at 3,147.96.
SAIC Motor Corp. rose 4.9% and Aluminum Corp. of China, or Chalco , rose 2.1% in Shanghai.
FAW Car Co. rose 3% and Yunnan Copper Co. gained 2.6% in Shenzhen.
In other markets
Singapore’s Straits Times Index returned from holiday to post a gain of 3.12 points, or 0.1%, to 3,125.22
Korea’s Kospi Index picked up 30.75 points, or 1.6%, to 1,927.86
Taiwan’s Taiex Index gathered 27.91 points, or 0.3%, to 8,283.45
New Zealand’s NZX 50 Index dipped 8.85 points, or 0.3%, to 3,280.46
Australia’s S&P/ASX 200 Index improved 15.90 points, or 0.3%, to 4,640.20
