Asian equity markets advanced Tuesday, after Chinese economic data fed into hopes that the country will avoid a sharp economic slowdown, though a late-session announcement of higher bank-reserve requirements hit Hong Kong-listed financials.
In Japan, the Nikkei 225 average picked up 99.58 points, or 1.1%, to 9,547.79
Hong Kong’s Hang Seng Index regressed 12.08 points Tuesday, or 0.1%, to 22,496, moving into negative territory in the final hour of trading after the People’s Bank of China announced a half-percentage-point rise to the reserve requirement ratio.
The Chinese data released Tuesday morning helped many of the major markets advance, as consumer inflation came in at 5.5%, in line with forecasts, while industrial production and retail sales posted strong gains, and fixed-asset investment accelerated.
In Tokyo, meanwhile, utility companies helped support the Japanese market, with Tokyo Electric Power Co. ending the session limit-up with a 25% gain after reports that Japan’s cabinet had approved a nuclear compensation bill.
The Tepco-operated Fukushima Daiichi nuclear plant was crippled by an earthquake and tsunami in March, releasing large amounts of radiation.
The Japanese utility sector, which has suffered along with Tepco, also rallied on Tuesday, with Kansai Electric Power Co., up 10.4%, and Chubu Electric Power Co., up 13.5%.
Also Tuesday, the Bank of Japan expanded its special lending facility for high-growth industries and tweaked upward its economic assessment, while keeping its interest-rate target range unchanged.
On the downside of Tokyo market action Tuesday, shares of Japan Tobacco Inc. declined 2.3%, bringing its losses made over the past two sessions to 5.7%.
Citigroup analysts said that U.S. rival, PMI Group Inc., has cut cigarette prices in Spain for the second time and said it believed Japan Tobacco could follow suit.
Miners dragged on the Australian share market after an overnight drop in commodities, although the sector pulled back from earlier, steeper losses after the data from China, which is a major customer for the mining sector.
BHP Billiton Ltd. ended the session with an 0.2% loss, and Rio Tinto Ltd. closed flat, while Fortescue Metals Group Ltd. fell 1%
CHINA
The hike, China’s sixth this year, is slated to take effect June 20, bringing the ratio for most large lenders to 21.5%.
Shanghai’s CSI 300 Index slid 11.58 points, or 0.4%, to 2,950.35
Mainland Chinese banks gave up much of their gains after the news, with some swinging to losses. Bank of China Ltd. dropped 0.3%, and Bank of Communications Ltd. fell 0.7%. Agricultural Bank of China Ltd. managed to end 1% higher, but off its 1.5% gain just before the hike.
In other markets;
Korea’s Kospi Index moved up 28.09 points, or 1.4%, to 2,076.83
Taiwan’s Taiex Index gained back 116.26 points, or 1.3%, to 8,829.21
Singapore’s Straits Times Index backslid 1.65 points, or 0.1%, to 3,057.39
New Zealand’s NZX 50 Index regained 12.17 points, or 0.4%, to 3,488.85
Australia’s S&P/ASX 200 Index returned from a long weekend to add 22.90 points, or 0.5%, to 4,585.
