Asian shares ended higher on Tuesday as mainland Chinese stocks rallied for a third straight session on hopes Beijing will come to investors’ rescue after last year’s market slump.
In Japan, the Nikkei 225 Index emerged from a long weekend with a gain of 31.91 points, or 0.4%, to 8,422.26
In Hong Kong, the Hang Seng Index hiked 138.56 points, or 0.7%, to 19,004.30
The performance also lent support to other regional markets. The Hang Seng China Enterprises Index -- an index of several mainland Chinese stocks traded in the city -- scored a more impressive gain of 1.8% to 10,413.61.
In Hong Kong, China Shenhua added 1.2% and Sinopec climbed 1.4%.
Several aluminum shares climbed after Alcoa Inc. posted a higher-than-expected fourth-quarter loss but said it expects aluminum demand to grow 7% in 2012.
Alcoa associate Alumina Ltd. rose 6.9% in Sydney after the results. Aluminum Corp. of China Ltd. added 2.9% in Hong Kong and 5.3% in Shanghai, while United Co. Rusal PLC rose 3.2% in Hong Kong.
Gains elsewhere in the region came as investors awaited signals of corporate profitability from the U.S. earnings season, against the backdrop of the European debt crisis.
The 2011 fourth-quarter earnings season could be a potential catalyst to drive stocks higher and out of recent trading ranges, according to one expert.
In Tokyo, Olympus Corp surged 19.9%, with the company’s shares now looking more likely to hold onto their listing on the Tokyo Stock Exchange, according to a Nikkei business daily report.
Reports also said Olympus has filed lawsuits against 19 current and former executives, seeking billions in compensation in the wake of an accounting cover-up scandal.
Deal speculation gave a boost to the Australian market, as Pacific Brands Ltd. surged 14.3% after the clothing manufacturer said it received an unsolicited takeover offer from U.S. private equity firm KKR & Co. LLP
Europe-exposed exporter Esprit Holdings Ltd. jumped 4.4% in Hong Kong, after the firm announced it was hiring a new chief product and design officer to help rebuild its global brand.
CHINA
The gains in Shanghai came after the top official at the China Securities Regulatory Commission, said the agency will move ahead on reforms including opening the markets further to foreign investors.
In Shanghai, the CSI 300 Index prospered 78.78 points, or 3.3%, to 2,447.35
Resource- and airline-sector stocks sparkled in a rally spread across the board in Shanghai, with Yang Quan Coal Industry Group Co. rising by the day’s 10% limit, while China Southern Airlines Co. added 7.4%.
Shares of China Shenhua Energy Co. added 2.9% and China Petroleum & Chemical Corp., or Sinopec, gained 0.5%, after the respective parent groups of the state-owned firms increased their stakes.
One expert said the move led to hopes that more parent groups may follow suit to increase shares in their respective units. Speculation that the People’s Bank of China may further cut banks’ reserve requirement ratios also supported the shares, she said.
In 2011, the Shanghai benchmark gave up more than a fifth of its price, while the Shenzhen index shed nearly a third of its value.
In other markets;
Taiwan’s Taiex Index added 85.83 points, or 1.2%, to 7,178.87
Korea’s Kospi Index picked up 26.73 points, or 1.5%, to 1,853.22
Singapore’s Straits Times Index regained 28.55 points, or 1.1%, to 2,719.83
New Zealand’s NZX 50 Index fell 19.27 points, or 0.6%, to 3,228.01
Australia’s S&P/ASX 200 Index climbed 46.84 points, or 1.1%, to 4,142.24
