Most Asian markets advanced Friday, with Japanese stocks buoyed by a proposed merger between Nippon Steel Corp. and Sumitomo Metal Industries, and by an upbeat profit forecast from Softbank Corp.
Japan’s Nikkei 225 Index regained 112.16 points, or 1.1%, to 10,543.50
Mergers-and-acquisition news in the steel sector bolstered the Tokyo market. Shares of Nippon Steel and Sumitomo Metal Industries surged after the two agreed to merge in a deal that would create the world’s No.2 steel producer and will likely fire up further industry acquisitions.
Nippon Steel surged 9.1% and Sumitomo Metal soared 16.1%, while peers Kobe Steel and JFE Holdings gained 2.8% and 2.1%, respectively. The spike in Sumitomo Metal shares came even as the company cut its sales outlook.
Also getting a lift from merger-and-acquisition news, QBE Insurance jumped 7.4% in Sydney after saying it has acquired the Balboa insurance portfolio from Bank of America-Merrill Lynch for an upfront payment of $700 million U.S.
Across the Tasman Sea, PGG Wrightson surged 12.7% to 62 New Zealand cents (48 U.S. cents) after saying it received a full takeover approach from a second party. In December, Agria Corp. and China-based New Hope Group launched a NZ$141-million partial takeover offer of NZ60 cents a share for 235 million shares, for a 50.01% stake.
Among other major stock movers, Softbank Corp. rose 3.6% in Tokyo after the mobile phone and Internet service firm Thursday raised its full-year operating profit forecast by 20%.
Sharp Corp. rose 5.3% on a Nikkei report it will partner with Taiwan’s Chimei Innolux in the production of television-use LCD panels, even as the company said Thursday its December quarter profit fell 19% on year.
Sony Corp. added 1.8% despite reporting an 8.6% fall in quarterly profit on Thursday.
Australian shares extended their gains after the Reserve Bank of Australia raised its end-2011 growth forecast to 4.25% from 3.75%. Retailer Woolworths climbed 0.5%, while financial services firm Suncorp Group added 1.3%.
In the foreign-exchange markets, the Australian dollar also got a boost against its U.S. counterpart from the RBA’s upbeat economic assessment. The currency was buying $1.0186 U.S., from $1.0149 U.S. in New York late Thursday.
The euro, meanwhile, moved in a narrow range, fetching $1.3620 U.S. from $1.3633 U.S., and 111.18 yen from ¥111.28. The U.S. dollar was trading at ¥81.61 from ¥81.62.
In other markets
Markets in Hong Kong, Singapore, Taiwan, Korea and China had the day off for the Lunar New Year holidays this week
New Zealand’s NZX 50 gained back 17.93 points, or 0.5%, to 3,367.82
Australia’s S&P/ASX 200 grew 42.10 points, or 0.9%, to 4,862.70
