Asia markets climbed on Thursday, with export and resource firms among the biggest gainers, as the latest plan to resolve Europe’s sovereign-debt woes revived appetite for equities.
In Tokyo, the Nikkei 225 Index recovered 84.35 points, or 1%, to 8,823.25
In Hong Kong, the Hang Seng Index kept its streak alive, ballooning 428.35 points, or 2.3%, to 18,757.80
The performance in Asia tracked gains in U.S. and Europe on Wednesday, where sentiment got a boost from hope that Europe is closer to a solution to its sovereign debt woes.
"Risk appetite improved, bank stocks rallied and the euro edged up to above $1.38 after European Commission President Jose Manuel Barroso pledged for urgent recapitalizing of European banks," noted Credit Agricole strategists.
Barroso Wednesday laid out a plan to recapitalize Europe’s banks as part of a "roadmap" to tackle the region’s sovereign debt crisis.
In addition, Slovakia is expected to approve the increase to the European Financial Stability Facility by the end of the week. Slovakia is the only euro-member nation yet to approve the changes to the EFSF, which would allow the fund to intervene in bond markets and help recapitalize banks.
Export firms were among the best performers, encouraged by hopes of restoring financial stability in Europe.
Shares in TDK Corp. rose 0.8%, Sharp Corp. gained 2.7% and watch-maker Citizen Holdings Co. Ltd. put on 3.1%, while Hong Kong listed shares of apparel firm Esprit Holdings Ltd. surged 15.7%.
Property developers were also notable advancers in Hong Kong, with Agile Property Holdings Ltd. adding 8.5% and China Resources Land Ltd. rising 11.9%.
Auto-makers gained ground, with Mazda Motor Corp. adding 4.5% and Hyundai Motor Co. Ltd. put on 2.2% in the Korean market.
Resource firms notched solid gains across Asia as economic sentiment and the prospects for demand improved.
Hong Kong listed Angang Steel Co. Ltd surged 16.3% and Jiangxi Copper Co. Ltd. climbed 11.2%. In Sydney trading, iron-ore producer Fortescue Metals Group rose 7.2%, while Rio Tinto Ltd. gained 2.8%.
Shares in airline Virgin Australia Ltd. traded up 3.2% after reports that Australia’s competition regulator intends to approve a proposed alliance between the carrier and Singapore Airlines Ltd
In other markets;
Shanghai’s CSI 300 index tacked on 17.84 points, or 0.7%, to 2,662.60.
Taiwan’s Taiex Index regained 45.98 points, or 0.6%, to 7,428.33
Korea’s Kospi Index grew 13.60 points, or 0.8%, to 1,823.10
Singapore’s Straits Times Index erased 3.78 points, or 0.1%, to 2,733.97
New Zealand’s NZX 50 Index slid 18.45 points, or 0.6%, to 3,306.68
Australia’s S&P/ASX 200 Index increased 40.20 points, or 1%, to 4,244.50
