Asian markets ended mostly higher Tuesday as risk appetite improved after U.S. President Barack Obama announced an extension of Bush-era tax cuts, and as Ireland’s parliament prepared for a budget vote.
The Nikkei 225 Index stumbled 26.13 points, or 0.3%, to 10,141.10
Hong Kong’s Hang Seng Index recovered 190.46 points, or 0.8%, to 23,428.20
Among gainers in Hong Kong, shares of Bank of China climbed 1.7% and Industrial & Commercial Bank of China gained 1.2%.
In Sydney, shares extended morning gains after the country’s central bank held rates steady at 4.75% and adopted a benign stance on policy. The Reserve Bank of Australia said that "over the next few quarters, inflation is expected to be little changed," reinforcing the view that a rate increase will be some way off.
Gains in resource stocks underpinned the market, with BHP Billiton Ltd. up 1.2%, Rio Tinto PLC adding 1.6% and Newcrest Mining advancing 1%.
Japanese stocks were led lower by exporters, with Honda Motor Co. dropping 1.9% and Canon Inc. losing 0.4%.
In Seoul, the market rose on gains in steel and shipbuilding stocks, which recouped some of their recent losses. Hyundai Heavy Industries added 2.7%, while Posco rose 1.4%.
In foreign-exchange markets, the euro climbed as a meeting of euro-zone finance ministers continued in Brussels, and as traders looked to Ireland’s budget, which is expected to pass a critical vote later in the day.
The single currency was fetching $1.3331 from $1.3321 U.S. late in New York on Monday, and 110.34 yen from ¥110.08. The dollar was buying ¥82.75 yen, compared with ¥82.62.
CHINA
Shanghai stocks recovered from initial losses suffered after a media report suggested that China’s central bank may raise rates around the weekend, while Australian shares advanced after the central bank there left interest rates unchanged and signaled a steady monetary policy.
Shanghai’s CSI 300 Index gained 34.77 points, or 1.1%, to 3,200.34
On mainland exchanges, China Life Insurance Co. rose 0.8% and Ping An Insurance added 1%, with gains also aided by mining and metal shares.
Jiangxi Copper Co. rose 2.4%, while Aluminum Corp. of China gained 1.1%
In other markets
Singapore’s Straits Times Index moved up 10.47 points, or 0.3%, to 3,191.88
Korea’s Kospi Index inched ahead 8.88 points, or 0.5%, to 1,962.52
Taiwan’s Taiex Index improved 2.16 points to 8,704.39
New Zealand’s NZX 50 Index slipped 11.32 points, or 0.3%, to 3,281.86
Australia’s S&P/ASX 200 Index regained 38.20 points, or 0.8%, to 4,726.80
