Asian stocks climbed on Monday after Italy picked a new prime minister and passed an austerity budget, easing fears that the country would be default on its massive debt.
Japan’s Nikkei 225 Index gained 89.23 points, or 1.1%, to 8,603.70
In Hong Kong, the Hang Seng Index picked up 371.01 points, or 1.9%, to 19,508.20
Italy’s president on Sunday invited Mario Monti, a former member of the European Commission, to form a new government in Italy following the resignation of Prime Minister Silvio Berlusconi, after a debt-cutting budget bill passed in the Italian parliament.
Financials reacted well to the news, with HSBC Holdings PLC rising 2.3%, and Agricultural Bank of China Ltd. up 2.8% in Hong Kong, while Macquarie Group Ltd. finished 1.3% higher in Australia.
In Japan, Nomura Holdings Inc. climbed 5.8%, and Daiwa Securities Group Inc. rose 2.8%.
Tokyo-listed firms were also trading higher against a backdrop of better news on the Japanese economy, as July-September gross domestic product rose an annualized 6.0%, following three quarters of contraction.
Industrial firms made gains after the data, with Hitachi Construction Machinery Co. up 3.5%, Kawasaki Heavy Industries Ltd. ahead by 1.4%, and Mitsui Engineering & Shipbuilding Co. rising 2.6%.
Car makers also advanced, with Nissan Motor Co., closing with a 2% gain, and Mazda Motor Corp. rising 2.8%.
In Hong Kong, Chinese food companies Want Want China Holdings Ltd. and Tingyi Cayman Islands Holding Corp. rose 6.1% and 4.3%, respectively, in reaction to an announcement late Friday that the two would join the benchmark Hang Seng Index, effective Dec. 5.
Deutsche Bank said it could take several days of active buying by regional funds to reflect their addition to the index.
Tingyi’s gain came in spite of the firm announcing during the midday break Monday that its third-quarter net profit fell 35% from a year earlier.
Russian aluminum giant United Co. Rusal PLC climbed 3.5% in Hong Kong, after reporting that its third-quarter net profit surged to $432 million U.S., from $29 million U.S. in the year-ago period. The result beat analysts’ median forecast for a profit of $409 million U.S., according to a Reuters survey.
In other markets;
Shanghai’s CSI 300 index advanced 55.19 points, or 2.1%, to 2,750.20
Taiwan’s Taiex Index vaulted 158.36 points, or 2.2%, to 7,525.65
Korea’s Kospi Index progressed 39.36 points, or 2.1%, to 1,902.81
Singapore’s Straits Times Index moved up 39.20 points, or 1.4%, to 2,830.14
New Zealand’s NZX 50 Index sifted off 12.15 points, or 0.4%, to 3,309.80
Australia’s S&P/ASX 200 Index gained 8.10 points, or 0.2%, to 4,304.60
