Japanese shares rebounded to lead most Asian markets higher Wednesday as cheap stock valuations attracted buyers after a hefty recent selloff despite fears about high radiation levels at an earthquake-damaged nuclear complex.
The Nikkei 225 index in Tokyo rallied 488.57 points, or 5.7%, following yesterday’s 1,000-point-plus disaster, to 9,093.72
Hong Kong’s Hang Seng Index regained 22.63 points, or 0.1%, to 22,700.90
Japan’s top government spokesman said radiation levels had again spiked Wednesday morning at the Fukushima Daiichi nuclear plant, but added that radiation levels fell shortly afterward and there was no need to expand the evacuation area around the plant based on current data.
Strong aftershocks and a short supply of daily essentials at some retail counters also kept the nation on edge.
Technology shares rebounded sharply after a punishing selloff earlier this week as investors shifted their attention to the earnings prospects of companies less affected by the earthquake. Sony Corp. added 8.8% and Sharp Corp. rose 7.3%.
Hitachi Ltd. jumped 16.6% despite being known as a nuclear-power-plant maker. Auto makers and tire makers soared, with Toyota Motor Corp. rising 9.1% and Mazda Motor Corp. adding 8.3%.
Bridgestone Corp. advanced 7% as it restarted production at domestic plants closed due to power cuts.
But some analysts remained positive in their stocks’ outlook. Those at Credit Suisse said they haven’t altered their overweight view on Japanese equities and that after Tuesday’s steep fall, the stocks were cheaper than in global markets.
Tokyo Electric Power Co. was one stock that didn’t participate in the day’s rally. The company, which owns and operates the damaged nuclear plant, slumped.
Drawing inspiration from the rebound in Tokyo, Australian uranium stocks also advanced, with Energy Resources of Australia Ltd. rising 10.3%, while Paladin Energy Ltd. climbed 13.5%, aided by Deutsche Bank’s upgrade of the stock to Hold; Paladin had lost 31.1% in the previous two sessions.
Gains in Seoul were led by heavyweight technology and steel stocks, with Samsung Electronics Co. climbing 3% and Posco rising 2.3%.
But some construction stocks underperformed amid the ongoing political unrest in the sector’s key Mideast markets. Hyundai Engineering & Construction Co. added 0.5%, while GS Engineering & Construction Corp. fell 0.6%.
In foreign-exchange trade, the U.S. dollar was at 80.89 yen, from ¥80.72 late Tuesday in New York, and at 0.9171 Swiss francs, from CHF0.9164.
CHINA
Chinese material and coal plays also posted gains.The Shanghai CSI 300 Index recovered 44.23 points, or 1.4%, to 3,248.20.
Yanzhou Coal Mining Co. rising 4.1% and Jiangxi Copper Co. adding 3.3% in Shanghai; in Hong Kong, the stocks rose 1.9% and 1.1%, respectively.
In other markets;
Taiwan’s Taiex Index gained 89.80 points, or 1.1%, to 8,324.58
Korea’s Kospi Index garnered 34.05 points, or 1.8%, to 1,957.97
Singapore’s Straits Times Index added 24.92 points, or 0.9%, to 2,971
New Zealand’s NZX 50 improved 12.66 points, or 0.4%, to 3,326.80
Australia’s S&P/ASX 200 tacked on 29.50 points, or 0.7%, to 4,558.20
