Most Asian markets advanced Thursday, with South Korean equities staging a strong rebound as foreigners turned buyers and snapped up beaten-down stocks, while Chinese banks helped lift Hong Kong shares on an upbeat earnings outlook.
The Nikkei 225 index in Tokyo recovered 93.64 points, or 0.9%, to 10,586
Hong Kong’s Hang Seng Index climbed 73.76 points, or 0.3%, to 23,122.40
Still, investors remained cautious, with worries the Middle East turmoil and soaring crude-oil prices lurked just under the surface.
April Nymex crude-oil prices closed at $102.23 U.S. a barrel in New York on Wednesday -- the highest settlement since Sept. 26, 2008. They advanced further in Asian trade, going as high as $102.94 U.S. a barrel, before retreating. The contract was recently down $1.07 at $101.16 U.S. on Globex.
The turnaround came after Reuters reported Arab League Secretary-General Amr Moussa said Libyan leader Moammar Gadhafi had agreed to a plan proposed by Venezuelan Pres. Hugo Chavez to seek a negotiated settlement with rebel forces.
South Korean stocks posted solid gains, buoyed by solid industrial output data and bargain-hunting by foreign investors, who turned net buyers, following a six-session selling spree.
Automobile stocks rose on robust February car sales data, with Hyundai Motor Co. advancing 2.8% and Kia Motors Co. soaring 6.6%.
Construction and airline stocks also rebounded after their recent under-performance, with Hyundai Engineering & Construction Co. rising 6.6% and Daewoo Engineering & Construction climbing 4.2%, while Korean Air Lines Co. added 3.3%.
Data released Thursday showed South Korea’s industrial output rose for the third consecutive month in January, climbing 13.7% on-year. The increase was spurred by solid overseas demand for semiconductors and automobiles.
In Tokyo, relief over Wall Street’s modest rise spurred some buying, although demand remained tentative due to the tense Middle East situation.
Softbank Corp. advanced 4.8% on hopes the company for higher sales of Apple’s second-generation iPad, which Softbank sells in Japan.
Trading house Itochu Corp. rose 1.4% on news it will buy U.K. tire company Kwik Fit.
Hong Kong shares were aided by gains in Chinese banks on hopes the rising interest-rate environment on the mainland will boost their interest incomes. Also on Thursday, Bernstein Research raised Chinese bank earning estimates for 2011 and 2012, saying the lenders’ first quarter results were expected to act as a catalyst to their shares.
China Construction Bank Corp. and Industrial & Commercial Bank of China each advanced 1%; in Shanghai, the stocks rose 1.4% and 0.5%, respectively.
In foreign exchange markets, the euro was steady against the U.S. dollar ahead of the European Central Bank’s rate-setting meeting due later in the day, amid growing expectations the central bank will hike interest rates soon.
The euro was fetching $1.3854 U.S. from $1.3868 U.S. late in New York on Wednesday, and ¥113.34 from ¥113.52. The dollar was buying ¥81.83 from ¥81.87. The greenback rose against the Swiss franc after losing ground Wednesday on worries about the Middle East; it was recently at CHF0.9257.
CHINA
However, Chinese markets ended lower, on worries Beijing could further tighten its monetary policy.
The Shanghai CSI 300 Index fell 21.58 points, or 0.7%, to 3,221.72.
Shares of Qingdao Haier Co. fell 2.6% and Dongfang Electric Corp. dropped 1.8%, while Air China declined 1.8%.
In other markets;
Taiwan’s Taiex Index picked up 118.47 points, or 1.4%, to 8,738.37
Korea’s Kospi Index gained 42.42 points, or 2.2%, to 1,970.66.
Singapore’s Straits Times Index inched up 9.84 points, or 0.3%, to 3,037.35
New Zealand’s NZX 50 regained 15.32 points, or 0.5%, to 3,397.31
Australia’s S&P/ASX 200 gained 3.20 points, or 0.1%, to 4,806.40
