Asian markets ended mostly higher Tuesday, with several commodity, shipbuilding and property shares rising as a strong finish on Wall Street buoyed investor sentiment.
South Korean shares closed at a record and Chinese stocks posted solid gains in the first trading session of 2011, but Australian shares were held back as insurers were hurt in the wake of devastating floods in Queensland state.
The Nikkei 225 index finished its first session of the New Year up 169.18 points, or 1.7%, to 10,398.10
Hong Kong’s Hang Seng Index added another 232.43 points, or 1%, to 23,608.50.
Korea’s Kospi Index picked up 15.06 points, or 0.9%, to 2,085.14, to yet another record.
Gains in Tokyo were also supported by short-covering after the market declined in its last trading day of 2010.
The Kospi’s record-setting run in Seoul was supported by brokerage and shipbuilding sector stocks. Brokerages rallied on hopes for stronger trading volumes after the benchmark index hit a record close on Monday; Samsung Securities gained 0.8% and Hyundai Securities added 1.3%.
Shipbuilders rose on an upbeat outlook for new orders this year, with Daewoo Shipbuilding & Marine Engineering adding 2.5%, while Hyundai Heavy Industries jumped 3.8% after saying it’s won a KRW590 billion ($527 million U.S.) order to build a drill ship in the U.S.
Posco added 2.8% after India’s federal environmental panel approved Monday the steelmaker’s plan to build a $12-billion U.S. steel project in eastern India.
The Hong Kong market extended its winning streak as property landlords advanced on expectations of higher rental income in 2011. Hysan Development Co. rose 3.7% and Wharf Holdings added 0.2%.
Australia’s index slipped 0.1% after a choppy session that saw the benchmark open higher but end lower after changing direction more than once.
Insurers were weighed down on concerns about the impact of the floods, as floodwaters continue to rise in parts of Queensland, and more rain was forecast in some areas of the state in coming days.
The full extent of damage caused by the floods, described by Queensland Treasurer Andrew Fraser as being "of biblical proportions," and the cost to insurers are unlikely to be known until the floodwaters start to recede.
Insurance Australia Group fell 1.6% and QBE Insurance Group dropped 2.1%. Suncorp Group which closed 3% lower at A$8.35 ($8.43 U.S.) on a deferred settlement basis, said it has so far received under 2,000 claims since Christmas Eve.
In the foreign-exchange market, the U.S. dollar rose to 82.19 yen from 81.73 yen in late New York trade on Monday, while the euro was at $1.3355 against $1.3353, and at 109.77 yen versus 109.17 yen.
CHINA
Shanghai stocks powered higher on the first trading day of the New Year.
Shanghai’s CSI 300 Index tacked on 61.42 points, or 2%, to 3,189.68
Coal miners and metals were leading gainers on mainland bourses, with Jizhong Energy Resources up 6.1% and Guizhou Panjiang Refined Coal soaring 9.4%, while Yunnan Copper added 4%.
Chinese property developers also jumped as investors snapped up shares at cheap valuations after they suffered heavy losses recently.
Gemdale Corp. soared by the day’s 10% limit and Poly Real Estate Group Co. climbed 9.9% in Shanghai, with China Vanke rising 7.1% in Shenzhen and China Overseas Land & Investment Ltd. adding 3.7% in Hong Kong.
In other markets
Taiwan’s Taiex Index slid 28.11 points, or 0.3%, to 8,997.19
Singapore’s Straits Times Index gained 14.52 points, or 0.5%, to 3,250.29
New Zealand’s NZX 50 skidded 25.24 points, or 0.8%, to 3,309.03.
Australia’s S&P/ASX 200 Index nipped backward 2.70 points to 4,742.50
