Asian markets climbed sharply Friday, with exporters and financials among the best performers, as news of central banks’ plan to boost dollar liquidity in Europe helped ease concerns there about another funding crisis.
In Japan, the Nikkei 225 average grew 195.30 points, or 2.3%, to close the week at 8,668.86
In Hong Kong, the Hang Seng Index leaped 273.81 points, or 1.4%, to 19,455.30
The European Central Bank, the Bank of England, the Bank of Japan, the Swiss National Bank and the U.S. Federal Reserve said Thursday that they will provide extra dollar liquidity to commercial banks.
The move appeared to calm some fears of another credit crunch, as Europe struggles to contain its sovereign-debt crisis.
Asian shares haven’t escaped the fallout from Europe’s troubles, with many exporters and financial shares coming under selling pressure in recent weeks.
Concerns over Europe’s troubles appeared to recede Friday after news of the central-bank moves followed a pledge made earlier in the week by Germany and France to support Greece as it struggles to cut its debt pile.
Exporters were gaining, with Pioneer Corp. up 6.5%, Nikon Corp. rising 5.4%, and Sony Corp. adding 4.3% in Japan, while Li & Fung Ltd. rose 3.5% in Hong Kong.
In South Korean trading, Hyundai Motor Co. traded up 4.8%, Kia Motors Corp. rose 3.7%, and LG Electronics Inc. added 3.3%.
Banks were also higher, with National Australia Bank Ltd. up 2.4%, and investment bank Macquarie Group Ltd. up 4.9% in Sydney.
Among Japanese banks, Nomura Holdings Inc. surged 5.5%, Mitsubishi UFJ Financial Group Inc. jumped 4.6% and Sumitomo Mitsui Financial Group Inc. advanced 4.1%.
In Hong Kong, Agricultural Bank of China Ltd. jumped 5.8%, and HSBC Holdings PLC added 3.1%.
Resource stocks also showed strength, as improving economic sentiment encouraged the prospects for energy demand.
Fortescue Metals Group. Ltd. added 3.6% in Sydney, while Jiangxi Copper Co. rose 3.6%, and China Coal Energy Co. Ltd. gained 2.6% in Hong Kong trading.
Energy firms extended gains from the Thursday session, with Japan’s JX Holdings Inc. up 6.6% and Australia’s Woodside Petroleum Ltd. up 3.1%.
But the news of the dollar-funding plan wasn’t a silver bullet, according to analysts at Capital Economics, as Europe’s debt problems haven’t gone away. A two-day European Union finance ministers’ meeting, also to be attended by U.S. Treasury Secretary Tim Geithner, was due to start later Friday.
Not all companies were gaining on Friday in Asia. Shares of Esprit Holdings Ltd. dropped another 19%, extending a steep slide from the previous session when the fashion retailer announced a 98% plunge in annual net profit.
In other markets;
Shanghai’s CSI 300 Composite Index inched ahead 4.94 points, or 0.2%, to 2,733.99
Taiwan’s Taiex Index gained 191.72 points, or 2.6%, to 7,577.40
Korea’s Kospi Index added 66.02 points, or 3.7%, to 1,840.10
Singapore’s Straits Times Index advanced 23.09 points, or 0.8%, to 2,789.04
New Zealand’s NZX 50 Index picked up 12.65 points, or 0.4%, to 3,292.68
Australia’s S&P/ASX 200 Index strengthened 77.70 points, or 1.9%, to 4,149.40
