Many Asian stocks ended higher at the end of a volatile session Friday as a set of strong earnings from U.S. corporations aided sentiment, with Japanese exporters rising on a weaker yen.
In Japan, the Nikkei 225 average regained 38.35 points, or 0.4%, to 9,974.47
Hong Kong’s Hang Seng Index lost 64.82 points, or 0.3%, to 21,875.40
The regional gains came after good quarterly results from Google Inc. and J.P. Morgan Chase & Co.
But U.S. debt fears kept gains in check On Thursday. Standard & Poor’s Ratings Services put U.S. sovereign ratings on formal credit watch, saying there was "at least a one-in-two likelihood that we could lower the long-term rating on the U.S. within the next 90 days."
But some analysts said the warning was intended as more of a message for U.S. politicians to act to raise the U.S. debt ceiling, rather than a warning sign for the stock markets.
The day’s performance in Asia also came ahead of the second round of European bank stress tests, due Friday after local markets close. The European Banking Authority will publish a list of banks that failed the tests, as well as more information on the specific sovereign exposures of the lenders that have been reviewed.
In Tokyo, exporters broadly advanced, as despite a broad softening of the U.S. dollar after the S&P move, the greenback mostly stayed above the ¥79 level.
Canon Inc. rose 0.9%, and Sony Corp. added 0.7%.
Internet firms gained, with Yahoo Japan Corp. trading up 1.8%, after shares in Google Inc. surged in after-hours trading after a better-than-expected earnings report. Trend Micro Inc. added 0.8%.
Tokyo-listed financial stocks also showed broad strength, with Shinsei Bank Ltd. rising 1.2%, and Daiwa Securities Group Inc. adding 1.8%.
In Sydney trading, BHP Billiton Ltd. fell 1.6% after the mining giant agreed to buy Petrohawk Energy Corp. for $12.1 billion U.S., marking its second acquisition of U.S. shale-gas assets this year.
Shares in Rio Tinto Ltd. rose 0.5% after the company reported a rise in second-quarter output of steel-making commodities iron ore and coking coal late Thursday
CHINA
Chinese property developers tumbled, pulling Hong Kong shares lower and capping gains in Shanghai, after Beijing broadened restrictions on some home purchases to also cover smaller cities.
Shanghai’s CSI 300 Index added 13.14 points, or 0.4%, to 3,128.89
Chinese property stocks suffered deep losses in Hong Kong, where China Overseas Land & Investment Ltd. shed 4.9% and China Resources Land Ltd. lost 2.9%. In Shanghai, Poly Real Estate Group Co. dived 2.8% and Gemdale Corp. fell 1.9%.
The drop came after China’s State Council on Thursday decided to extend restrictions on home purchases in big cities to several smaller cities.
Credit Suisse analysts said the decision confirmed that expectations for policy relaxation in the second half of this year in the property sector were "wishful thinking," and that property stocks that had significantly outperformed recently would come under selling pressure.
Chinese financial stocks inched up on mainland bourses, with China Construction Bank Corp. adding 0.4%, and Ping An Insurance Group Co. gaining 0.8% in Shanghai.
In other markets;
Korea’s Kospi Index picked up 15.13 points, or 0.7%, to 2,145.20
Taiwan’s Taiex Index advanced 93.56 points, or 1.1%, to 8,574.91
Singapore’s Straits Times Index slid 4.46 points, or 0.1%, to 3,084.24
New Zealand’s NZX 50 Index dipped 3.17 points to 3,406.38
Australia’s S&P/ASX 200 Index slipped 17.20 points, or 0.4%, to 4,473.50
