Many of Asia’s major stock markets swung from opening losses to closing gains Wednesday, as anxiety ahead of a key European Union summit gave way to optimism over Chinese economic policy.
In Tokyo, the Nikkei 225 Index docked 13.84 points, or 0.2%, to close Wednesday at 8,748.87
In Hong Kong, the Hang Seng Index advanced 98.34 points, or 0.5%, to 19,066.50
Asian bourses had started broadly lower, with investors cautious as E.U. leaders were set to meet later in the day to hammer out a deal to enlarge a key financial rescue fund and other issues to resolve the region’s debt crisis.
Reports of German opposition to allowing more bond-buying by the European Central Bank helped fuel pessimism over the likelihood of a comprehensive deal, with BNP Paribas analysts writing early in the day that "closure on the euro-zone saga is far from being reached."
Hong Kong-listed shares of Chinese banks reacted well to Wen’s speech, with Bank of China Ltd. rising 1.1% and Agricultural Bank of China Ltd. up 4.1%.
Over in Tokyo, shares were more of a mixed picture, with some names dragged down by strength in the Japanese yen.
The U.S. dollar touched a new post-World-War-II low against the yen Tuesday, hitting ¥75.73 but recovering to above the ¥76 level for much of the Wednesday stock-trading session in Tokyo.
The currency moves weighed on some Japanese exporters, with Sharp Corp. losing 1.3%, and Honda Motor Co. dropping 0.6%, with the latter also weighed by production problems caused by flooding in Thailand.
But other blue-chip exporters shrugged off the strong yen, including Hitachi Ltd., which saw its stock rise 3.7% after it hiked its forecast for fiscal first-half profit.
Earnings offered a catalyst for share gains in several markets. Canon Inc. added 0.6% in Tokyo after posting a 14.2% rise in quarterly net-profit and despite cutting its outlook.
Aluminum Corp. of China Ltd., or Chalco, advanced 3.9% in Hong Kong and 2.6% in Shanghai after posting a swing to third-quarter profit.
Australian shares got an additional mid-session boost from third-quarter consumer inflation data, which printed in line with expectations. The result left the door open for an interest rate cut from the Reserve Bank of Australia, sending financial shares higher.
Shares of National Australia Bank Ltd. were up 1.1% after trading down 1.2% shortly after the open, while Westpac Banking Corp. added 1.4% and Commonwealth Bank of Australia advanced 0.8%.
Sydney-listed retail shares also pushed higher following the data, including a 3.6% gain for Myer Holdings Ltd and a 3.7% rise for David Jones Ltd.
CHINA
One observer said the turnaround was due in large part to hopes that China may soon begin a slight policy easing after a series of tightening moves throughout much of the year to keep a lid on prices.
Shanghai’s CSI 300 index improved 26.23 points, or 1%, to 2,651.65
"It’s connected to [Chinese Premier] Wen Jiabao’s remarks ... that macro-economic policy needs fine-tuning, and also that credit supply needs to be reasonable," he said.
Wen made the comments Tuesday on a visit to the port of Tianjin, also calling for support for small businesses.
In other markets;
Markets in Singapore were off for a holiday
Taiwan’s Taiex Index added 44.61 points, or 0.6%, to 7,535.82
Korea’s Kospi Index inched up 5.66 points, or 0.3%, to 1,894.31
New Zealand’s NZX 50 Index edged up 0.61 points to 3,296.98
Australia’s S&P/ASX 200 Index moved higher 14.60 points, or 0.4%, to 4,242.50
