Asian markets ended higher on Monday as investors looked beyond worries about inflation in China on relief over Friday’s resignation of Egyptian President Hosni Mubarak.
The Nikkei 225 index in Tokyo returned from a long weekend by climbing 119.89, or 1.1%, to 10,725.50
Hong Kong’s Hang Seng Index jumped 292.14 points, or 1.3%, to 23,121.10
Japanese stocks rallied despite data showing a contraction in the nation’s fourth-quarter gross domestic product, as investors were led by hopes for a recovery during the three months ending March 31.
In Hong Kong, Aluminum Corp. of China jumped 4.6% and Esprit Holdings added 5.1%, while China Resources Land added 3.5% after Credit Suisse upgraded the stock to neutral.
In Tokyo, meanwhile, shares were supported by fading tensions in Egypt and the yen’s weakness against the U.S. dollar since Thursday. Domestic markets were closed on Friday for a public holiday.
Data released before the stock markets opened showed the country’s fourth-quarter gross domestic product contracted 1.1% in annualized terms. However, analysts said the data for the current quarter were likely to be better.
Among exporters, shares of Honda Motor Co. climbed 2.8% and Fanuc rose 3.8%, while Nikon Corp. jumped 3.5%.
Also supporting the advance, shares of Isetan Mitsukoshi Holdings rose 3.7% after the company lifted its full-year profit forecasts. Dai-ichi Life Insurance surged 5.9% on improving earnings in its insurance business. Olympus Corp. climbed 4.8% following the appointment of a new non-Japanese president.
In Sydney, relief over Mubarak’s resignation sparked gains in several sectors. Among heavyweight stocks, BHP Billiton rose 1.9% and Rio Tinto added 1.4%, with Telstra Corp. climbing 0.7% and National Australia Bank rising 2.4%.
Bucking the uptrend, Insurance Australia Group fell 4% after the country’s biggest general insurer cut its fiscal year margin guidance following losses at its U.K. operations, and on severe flooding and storms in Australia.
Stocks in Seoul rebounded after hefty losses recently, with the rise in Seoul aided by foreign investors’ purchases.
Samsung Electronics soared 4.2% and Hyundai Motor Co. jumped 4% in Seoul.
In foreign exchange markets, the U.S. dollar fell against major currencies on improved risk appetite. The euro was fetching $1.3531 U.S. from $1.3560 U.S. late Friday in New York, and ¥112.53 from ¥113.04. The dollar was at ¥83.16, from ¥83.40.
CHINA
Stocks in Shanghai as well as Hong Kong climbed as investors shrugged off strong trade data from the mainland, which fanned worries that authorities may keep a policy tightening bias to check inflationary pressures.
Some analysts said China’s inflation data for January, due on Tuesday, might also keep worries about monetary tightening in place.
Shanghai’s CSI 300 Index gained another 98.19 points, or 3.2%, to 3,219.14.
In China, the trade data signaled still-strong economic activity as the market there rose ahead of a crucial inflation report on Tuesday. China’s exports soared 37.7% from the year-earlier month, while imports surged at an even faster rate of 51%, pointing to robust domestic economic activity in the country.
Several mainland Chinese stocks posted solid gains, led by brokerages. Citic Securities Co. and Hong Yuan Securities Co. were among those that rose by the day’s 10% limit, with Anhui Conch Cement Co. climbing 8.2%, Jiangxi Copper Co. climbing 5.7% and Ping An Insurance adding 4.6%.
In other markets;
Taiwan’s Taiex Index darted 75.61 points, or 0.9%, upward to 8,685.47
Korea’s Kospi Index regained 37.40 points, or 1.9%, to 2,014.59
Singapore’s Straits Times Index grew 27.15 points, or 0.9%, to 3,104.42
New Zealand’s NZX 50 gained 16.03 points, or 0.5%, to 3,383.47
Australia’s S&P/ASX 200 tacked on 54.90 points, or 1.1%, to 4,935.80
