Asia stocks rallied on Friday, with exporters and resource firms among the notable gainers, following a surprise interest rate cut by the European Central Bank and after Greece shelved plans for a financial bailout referendum.
Japan’s Nikkei 225 Index proceeded ahead 160.98 points, or 1.9%, to 8,801.40, after taking Thursday off.
In Hong Kong, the Hang Seng Index zoomed 600.29 points, or 3.1%, to 19,842.80
Asian investors picked up on strong gains for European and U.S. markets made Thursday after Greece abandoned plans to put its latest bailout package to a popular vote.
Also boosting sentiment was Europe’s quarter-point cut to 1.25%, announced by the central bank’s new president Mario Draghi. The move took markets by surprise and indicated that the central bank will focus on supporting growth, even in the face of elevated inflation.
Against this action to shore up the European economy, export-focused firms showed strength in the Tokyo session, with Sharp Corp. rising 4.4%, Toshiba Corp. climbing 3.2%, and Hitachi Ltd. up 3.6%
Many exporters in other markets also moved higher, with Li & Fung Ltd. up 5% in Hong Kong, and LG Display Co. advancing 8.1% in Seoul.
But Tokyo-listed shares of Sony Corp. plunged 7.9% as investors took their first chance to react to results from late Wednesday, when the conglomerate swung to a second-quarter net loss and said losses could top $1 billion for the year.
J.P. Morgan analysts cut the firm to neutral from overweight on Friday.
Nissan Motor Co. traded up 4.9% after the auto maker raised its outlook for the fiscal-year in profit results posted on Wednesday.
Financials helped lead gains in Hong Kong, where Industrial & Commercial Bank of China Ltd. traded up 3.3%, Bank of Communications Co. added 6.6%, China Merchants Bank Co. rose 6.3%, and China Life Insurance Co. ended 7.3% higher.
Resource stocks also advanced, helped by overnight gains in some commodities.
In the Sydney session, BHP Billiton Ltd. rose 3.9%, Rio Tinto Ltd. climbed 5.3%, and iron-ore producer Fortescue Metals Group Ltd. surged 7.9%.
In Hong Kong, Aluminium Corp. of China Ltd. advanced 7.2%, and Cnooc Ltd. closed up 5.1%.
Among Tokyo-listed trading houses, Mitsui & Co. gained 2.7%, Mitsubishi Corp. rose 2.3%, and Itochu Corp. added 4.5%.
In other markets;
Shanghai’s CSI 300 index gained 19.45 points, or 0.7%, to 2,763.75
Taiwan’s Taiex Index picked up 142.92 points, or 1.9%, to 7,603.23
Korea’s Kospi Index advanced 133.69 points, or 3.4%, to 1,928.41
Singapore’s Straits Times Index progressed 38.20 points, or 1.4%, to 2,848.24
New Zealand’s NZX 50 Index tacked on 20.28 points, or 0.6%, to 3,331.79
Australia’s S&P/ASX 200 Index added 109.30 points, or 2.6%, to 4,281.10
