Asian markets rose Monday against a backdrop of caution over heightened geopolitical concerns in the Mideast and North Africa, as energy stocks climbed on higher oil prices and on optimism over progress in resolving Japan’s nuclear crisis.
Japanese markets were closed for Vernal Equinox Day.
Hong Kong’s Hang Seng Index leaped 384.99 points, or 1.7%, to 22,685.20
A number of energy stocks outperformed in the region, with Woodside Petroleum Ltd. rising 1.8% and Santos Ltd. climbing 1.1% in Sydney; PetroChina Co. gaining 3.3% in Hong Kong and 1.6% in Shanghai.
However, some analysts were optimistic the fallout from the turmoil in the region could be contained.
The comments came amid reports that Japan had made progress with its nuclear crisis, restoring power to some of its stricken reactors at the Fukushima Daiichi plant.
Meanwhile, the World Bank offered an upbeat assessment on the impact of the nuclear crisis, saying the effects will be "short-lived."
Australian uranium stocks continued to recover from heavy losses caused by the Japanese nuclear crisis. Paladin Energy Ltd. added 2.5% and Extract Resources Ltd. jumped 14.4%.
In foreign-exchange markets, the yen was weighed by the prospect of further moves by major central banks to weaken the currency. While activity was subdued by the holiday in Japan, traders in other parts of Asia kept a close watch for potential intervention by the Bank of Japan to sell the yen, after coordinated action by the Group of Seven industrialized nations Friday to push the currency down.
The U.S. dollar was recently at 81.14 yen from ¥80.62 in late New York trade on Friday, while the euro was at ¥114.84 from ¥114.34 and at $1.4153 from $1.4175.
CHINA
In China, banks and property developers rose as investors looked past a well-anticipated increase in lenders’ reserve requirement ratio by 0.50 percentage points on Friday by the People’s Bank of China.
The Shanghai CSI 300 Index sifted off 8.57 points, or 0.3%, to 3,207.11
The increase, the PBOC’s third such hike so far this year, takes effect on Mar. 25 and is aimed at draining liquidity from the banking system as part of Beijing’s efforts to rein in inflation
Shares of Industrial & Commercial Bank of China Ltd. climbed 1.9% and China Construction Bank Corp. rose 0.6% in Shanghai; in Hong Kong, they added 1.7% and 1%, respectively.
Property developers also climbed, with China Vanke Co. rising 1.2% in Shenzhen, Poly Real Estate Group Co. adding 1% in Shanghai and China Overseas Land & Investment Ltd. jumping 3.8% in Hong Kong.
In other markets:
Taiwan’s Taiex Index added 72.96 points, or 0.9%, to 8,467.71
Korea’s Kospi Index gained 22.29 points, or 1.1%, to 2,003.42
Singapore’s Straits Times Index strengthened 47.73 points, or 1.6%, to 2,983.51
New Zealand’s NZX 50 improved 8.86 points, or 0.3%, to 3,348.36
Australia’s S&P/ASX 200 prospered 16.40 points, or 0.4%, to 4,642.80
