Asian stocks climbed Friday, with shares in Tokyo adding to their weekly gains as hopes for reconstruction and news flow on resumption of production at some manufacturers overrode concerns about the impact of Japan’s earthquake and tsunami on corporate results.
The Nikkei 225 Index advanced 101.12 points, or 1.1%, to 9,536.13, lifting its weekly gain to 3.6%. The Nikkei sank more than 10% last week on a wave of selling after the earthquake and tsunami that struck the nation on March 11.
Hong Kong’s Hang Seng Index rallied 243.39 points, or 1.1%, to 23.158.70
Despite the improved sentiment, experts said investors will be wary of taking on heavy positions given the fluid situation at the Fukushima Daiichi nuclear complex.
Toyota Motor Corp. rose 1.9% after saying Thursday it will resume production of three hybrid models in Japan on Monday, while Nissan Motor Co. gained 1.5%, retracing some of the previous session’s 4.6% drop. Nissan began production of some parts earlier this week and assembly of some vehicles on Thursday.
Sony Corp. jumped 3.3% after Deutsche Bank upgraded the stock rating to buy from hold, citing an improving profit outlook and undervalued shares.
Tokyo Electric Power Co., which owns the Fukushima nuclear plant, fell 6.2%.
Gains for technology-related stocks in the U.S. overnight also served to bolster regional semiconductor companies.
Elpida Memory Inc. climbed 3.2% in Tokyo, while Samsung Electronics Co. jumped 3.4% and Hynix Semiconductor Inc. added 2.8% in Seoul, partially supported by hopes they will benefit from Japanese rivals’ troubles in the aftermath of the earthquake and tsunami.
Banking stocks sparkled in Hong Kong after Bank of China Ltd. and BOC Hong Kong Holdings Ltd. both reported better-than-expected 2010 results Thursday.
Bank of China climbed 2.6%, BOC Hong Kong added 2.1% and Industrial & Commercial Bank of China Ltd. rose 1.9% in Hong Kong
But earnings-related news wasn’t all good, and Hong Kong-listed merchandise-sourcing company Li & Fung Ltd. plunged 9.1% after reporting a lower-than-expected growth in 2010 profits Thursday.
In foreign-exchange trade, the euro moved in a narrow range against the U.S. dollar, showing resilience in the face of the euro-zone debt crisis.
Standard & Poor’s Ratings Services cut Portugal’s credit rating by two notches to BBB and remained on watch for further downgrades a day after Prime Minister Jose Socrates resigned, following the opposition parties’ rejection of an austerity plan.
The single currency was fetching $1.4156 U.S. from $1.4177 U.S. late Thursday in New York, and 114.76 yen from ¥114.76. The dollar was at ¥81.08 compared with ¥80.97.
CHINA
Chinese banks rallied to boost stocks in Shanghai and Hong Kong after Bank of China Ltd. reported robust results.
The Shanghai CSI 300 Index moved up 43.12 points, or 1.3%, to 3,294.48. In Shanghai, Bank of China gained 1.8%, while ICBC climbed 1.1%
In other markets;
Taiwan’s Taiex Index tacked on 33.99 points, or 0.4%, to 8,610.39
Korea’s Kospi Index prospered 17.26 points, or 0.9%, to 2,054.04
Singapore’s Straits Times Index ticked up 27.81 points, or 0.9%, to 3,070.84
New Zealand’s NZX 50 improved 1.36 points to 3,388.61
Australia’s S&P/ASX 200 grew 43 points, or 0.9%, to 4,742.60
