Hong Kong stocks led gains for Asia markets on Tuesday, with financial shares surging after a state-backed investment fund boosted its holdings in some of China’s biggest banks.
In Tokyo, the Nikkei 225 Index jumped 168.06 points, or 2%, to 8,773.68
In Hong Kong, the Hang Seng Index spiked 430.53 points, or 2.4%, to 18,141.60
Banking shares soared in Hong Kong after China’s state-run Central Huijin Investment bought shares in the country’s "big four" banks in what analysts believe could be an effort to stabilize the Chinese financial system.
Agricultural Bank of China Ltd. soared 12.8%, Bank of China Ltd. gained 7.7%, Industrial & Commercial Bank of China Ltd. added 6.7% and China Construction Corp. put on 5.8%.
Resource firms were also well supported in Hong Kong, with shares in China Coal Energy Co. Ltd. up 6.9% and Jiangxi Copper Co. Ltd. rising 3.1%.
Exporters posted solid gains in Japan. Ricoh Co. Ltd. added 6%, and Toshiba Corp. rose 3.4%.
Other notable gainers included Sony Corp. up 5.7% and Sharp Corp., up 4.5%.
In the auto sector, Honda Motor Co. Ltd. put on 5.5%, while Hyundai Motor Co. Ltd. gained 3.8% in the Korean session.
Tokyo-listed shares in Toyota Motor Corp. added 1.6% after it reported a rise in Chinese sales in September.
Media stocks outperformed in the Sydney trading session, with Fairfax Media Ltd. up 3.4%, Seven West Media Ltd. gaining 4% and APN News & Media Ltd. rising 4.1%.
The performance in Asia followed a 3% rally for U.S. stocks on Monday, where sentiment got a boost from pledges made by German and French leaders over the weekend to support Europe’s banks.
The plan is due to be unveiled by the end of the month.
In other markets;
Shanghai’s CSI 300 index eased 5.09 points, or 0.2%, to 2,551.99.
Taiwan’s Taiex Index jumped 186.75 points, or 2.6%, to 7,398.71
Korea’s Kospi grew 28.58 points, or 1.6%, to 1,795.02
Singapore’s Straits Times Index gained 24.75 points, or 0.9%, to 2,693.05
New Zealand’s NZX 50 Index moved higher by 23.30 points, or 0.7%, to 3,396.15
Australia’s S&P/ASX 200 Index added 26.10 points, or 0.6%, to 4,227.60.
