Most Asian markets rose Thursday as a rebound on Wall Street and commodity prices restored some investor confidence, with stocks in Sydney getting a further lift from solid capital-spending data.
In Japan, the Nikkei 225 average regained 139.17 points, or 1.5%, to 9,562.05
Hong Kong’s Hang Seng Index gained 153.51 points, or 0.7%, to 22,900.80
South Korean shares were the region’s best performers, soaring on a return of foreign buying and a robust earnings outlook.
In Seoul, the day’s rally came as foreign investors turned buyers after a 10-day selling streak.
The gains also coincided with a report in which Citigroup raised the benchmark Kospi’s end-of-year target to 2,350, from 2,050-2,150 by mid-year, citing an upward earnings revision and attractive valuations.
Auto makers again outperformed in Seoul, after Hyundai Motor Co. said operations at its Ulsan plant have been normalized after a strike at key parts supplier Yoosung Enterprise ended late Tuesday. Hyundai shares rose 5.6%.
Kia Motors Corp. jumped 6.7%, further supported after Moody’s Investors Service placed its rating on review for a possible upgrade.
Again, some analysts preferred not to read too much into the day’s rally.
Stocks in Sydney gained after data showed private new capital spending on buildings and equipment rose 3.4% in the quarter ended March 31 from the preceding three months.
Resources stocks rallied on Wednesday’s strength in commodity and base-metals prices. BHP Billiton Ltd. gained 2.2% and Rio Tinto Ltd. added 1.9%.
Regional energy stocks climbed on the back of crude oil’s return above the $100-U.S.-a-barrel level Wednesday.
Cnooc Ltd. added 2.9% in Hong Kong, PetroChina Co. gained 1.5% in Hong Kong and 0.4% in Shanghai, Inpex Corp. added 3.1% in Tokyo, Woodside Petroleum Ltd. advanced 1.9% in Sydney.
Shares of Canon Inc. surged 5.8% in Tokyo after the imaging company announced a share buy-back plan.
Ricoh Co. advanced 4.1% on a Nikkei report the company plans to cut 10,000 jobs worldwide, while Mazda Motor Corp. jumped 6.9% on ratings upgrades for both Nomura Securities and J.P. Morgan.
In foreign-exchange markets, the euro rose on strong equities and after comments from Wang Yong, a professor at the People’s Bank of China’s training institute, that China should expand purchases of euro-zone sovereign debt.
The euro was at $1.4171 U.S. compared with $1.4086 U.S. late Wednesday in New York, and at 116.05 yen versus ¥115.45. The dollar was fetching ¥81.88, against ¥81.96.
Still, traders said the Greek debt concerns will limit the euro’s gains amid uncertainty about how the nation’s problems could be resolved.
CHINA
Markets behind the former "bamboo curtain" dropped for a sixth day and failed to shake off the worries about economic slowdown and high inflation.
Shanghai’s CSI 300 Composite Index tailed off 11.96 points, or 0.4%, to 2,978.38
In other markets;
Taiwan’s Taiex Index progressed 61.31 points, or 0.7%, to 8,788.40
Korea’s Kospi index gained back 56.04 points, or 2.8%, to 2,091.91
Singapore’s Straits Times Index inched ahead 5.05 points, or 0.2%, to 3,123.70
New Zealand’s NZX 50 slid 26.78 points, or 0.8%, to 3,526.59
Australia’s S&P/ASX 200 gathered 75.50 points, or 1.7%, to 4,660.20
