Most Asian markets advanced Monday, with exporters and commodity-linked stocks leading the way, as an agreement by European leaders to overcome the region’s debt woes provided a lift to investor sentiment.
Japan’s Nikkei 225 Index recovered 117.36 points, or 1.4%, to 8,653.82
In Hong Kong, the Hang Seng Index shaved off 10.57 points, or 0.1%, to 18,575.70
The gains for most of Asia followed an advance for U.S stocks Friday, following European leaders’ agreement on steps toward creating a tighter fiscal union, and an improvement in U.S. consumer confidence.
At a summit in Brussels last week, European Union countries committed to tougher fiscal rules and more co-ordination that will likely be adopted by 26 E.U. nations, with Britain the only member opting out of the pact.
In Hong Kong, shares of China Overseas Land & Investment Ltd. fell 0.9%, while Ping An Insurance Group Co. gave up solid morning gains to finish 0.6% lower.
One expert described Asia’s gains as a "short-term rally" as equity investors "latch on to any reason to rally."
Exporting firms climbed, with Tokyo-listed Toshiba Corp. up 3.3% and Sony Corp. 1.3% higher in Tokyo; in Seoul, LG Electronics Inc. put on 4.5%, while Samsung Electronics Co. added 2.9%.
Energy stocks were among the best performers in Sydney, with Santos Ltd. up 3.2% and Woodside Petroleum Ltd. gaining 1.5%.
Shares in Origin Energy Ltd. rose 3% after the firm reached an initial agreement to supply more liquefied natural gas to China Petroleum & Chemical Corp., or Sinopec, as part of its Australia Pacific LNG joint-venture with ConocoPhillips. Sinopec shares gained 0.9%.
CHINA
Markets in mainland China dipped on worries about the nation’s slowing economy, and in particular, weakening exports to Europe.
Shanghai’s CSI 300 index shed 25.77 points, or 1%, to 2,477.69
Chinese property developers were hurt by concerns about the nation’s slowing economy, with Poly Real Estate Group Co. losing 3.6% and Gemdale Corp. falling 5%.
Citigroup analysts noted that monthly exports to the E.U., China’s largest trading partner, eased to 5% from the year-ago month.
Resource sector stocks also declined, with Aluminum Corp. of China Ltd. dropping 1.6% and PetroChina Co. dropping 1.1%.
In other markets;
Taiwan’s Taiex Index moved higher 55.74 points, or 0.8%, to 6,949.04
Korea’s Kospi Index improved 25.01 points, or 1.3%, to 1,899.76
Singapore’s Straits Times Index added 7.12 points, or 0.3%, to 2,701.72
New Zealand’s NZX 50 Index gained 28.05 points, or 0.9%, to 3,299.15
Australia’s S&P/ASX 200 Index jumped 49.80 points, or 1.2%, to 4,252.80
