Asian markets rallied Tuesday, with Tokyo shares jumping on optimism the country’s industrial output may have seen its worst, while stocks in Shanghai emerged from an eight-session losing streak on bargain buying across several sectors.
In Japan, the Nikkei 225 average zoomed 188.76 points, or 2%, to 9,693.73, after industrial production rose a seasonally adjusted 1% in April, according to government data out Tuesday.
A survey released with the data showed industrial output projected to improve to 8% in May, compared with a previous forecast of 2.7%.
Hong Kong’s Hang Seng Index surged 499.81 points, or 2.2%, to 23,684.10
Investors brushed aside some bad news in the region, such as Moody’s review of Japan's ratings for a possible downgrade and weaker-than-expected economic growth data in India. The euro also advanced as risk appetite improved after a report in The Wall Street Journal said Germany was considering not pushing for a rescheduling of Greek bonds.
One expert opined that considering the data alongside other business indicators, "we think the worst is over for business activities after March’s earthquake and the economic activity is likely to normalize gradually."
Ranking among the gainers, Nippon Steel Corp added 2.5% and Mitsubishi Heavy Industries Ltd. climbed 4.8%.
Moody’s decision to place Japan’s sovereign-debt ratings on review for a possible downgrade served only to accelerate stock gains in the afternoon, as the yen was weighed by the move.
Among exporters, Sharp Corp. rose 2.7%, Toyota Motor Corp. added 2.1% and Isuzu Motors Ltd. climbed 3%.
South Korean stocks jumped during the session as upbeat regional markets spurred purchases by foreign investors. Shipbuilders and petrochemicals stocks were among the big gainers, with STX Offshore & Shipbuilding Co. rising 2.9% and Honam PetroChemical Corp. rising 5%.
Hyundai Heavy Industries Co. soared 10.8%, also aided by news of order wins to build ships.
Several Asian energy stocks jumped as oil prices firmed in electronic trading, with Inpex Corp. climbing 3.7% in Tokyo and Woodside Petroleum Ltd. adding 1.4% in Sydney; Cnooc Ltd. advanced 2.6% and PetroChina Co. jumped 3.1% in Hong Kong.
In currency trading, the euro was bolstered after the Journal reported that Germany may drop pushing for rescheduling of Greek debt, a move that could pave the way for Greece to receive a new package of financial aid.
The euro was buying $1.4416 U.S. against $1.4344 U.S. Monday, and 117.58 yen versus ¥115.98. The U.S. dollar was buying ¥81.59, compared with ¥80.82 before the Moody’s announcement.
CHINA
Chinese power utilities traded in Shanghai as well as Hong Kong got a boost from Beijing’s decision to increase power tariffs modestly in several mainland Chinese provinces.
Shanghai’s CSI 300 Composite Index finally reversed its misfortunes, picking up 47.05 points, or 1.6%, to 3,001.56
The decision is aimed at encouraging the power-generation companies to boost output and ease a severe power shortfall expected on the mainland this summer.
Huadian Power International Corp. rose 1.6% and Huaneng Power International Inc. climbed 2% in Shanghai; in Hong Kong, the stocks added 1.8% and 0.9%, respectively.
Also climbing on mainland bourses, China Coal Energy Co. rose 2%, Citic Securities Co. added 2.1% and Jiangxi Copper Co. advanced 2.6%.
In other markets;
Taiwan’s Taiex Index gathered 165.16 points, or 1.9%, to 8,988.84
Korea’s Kospi index advanced 48.68 points, or 2.3%, to 2,142.47
Singapore’s Straits Times Index added 19.33 points, or 0.6%, to 3,159.33
New Zealand’s NZX 50 edged up 4.66 points, or 0.1%, to 3,547.64
Australia’s S&P/ASX 200 regained 40.80 points, or 0.9%, to 4,708.30
