Asian markets advanced Wednesday on robust earnings from Apple Inc. and better-than-expected euro-zone economic data, with stocks in Tokyo ending near a three-month high as the yen weakened on Japan’s first annual trade deficit in 31 years.
In Japan, the Nikkei 225 Index recovered 98.36 points, or 1.1%, Wednesday to 8,883.69, a closing level it hasn’t seen since Oct. 31. The gains came as the U.S. dollar rose as high as 77.98 yen during the session, compared with ¥77.74 late Tuesday and ¥77.02 late Monday in North America.
Trading volumes were quiet, with stock markets in Hong Kong, mainland China and Taiwan closed for the Lunar New Year holiday.
Data released earlier in the day showed Japan recorded an annual trade deficit in 2011, its first since 1980.
Japanese exporters gained as the yen weakened, with Honda Motor Co. rising 3.8%, Mazda Motor Corp. climbing 4.6%, and Sony Corp. zooming up 4.8%.
Toyota Motor Corp. rose 3%, also aided after the firm revised up its 2012 sales plan for Japan.
Shipping firms also jumped in the region on improved investor sentiment, with Mitsui O.S.K.
Lines Ltd. advancing 7.6%, and Nippon Yusen K.K. climbing 3.6% in Tokyo, while Hanjin Shipping Holdings Co. added 2.1% in Seoul.
The day’s advance came despite a decline for the Dow Jones Industrial Average Tuesday, amid worries about stalled debt talks between Greece and its lenders, and downbeat results from McDonald’s Corp. and Travelers Cos.
But after the closing bell, Apple Inc. reported a forecast-busting rise in first-quarter net profit, following a jump in iPhone sales.
The gains for U.S. stock index futures also came ahead of the conclusion of a two-day Federal Reserve policy meeting. For the first time, Fed officials will release forecasts for their best guess of the path of short-term rates for coming years.
Although Greece has yet to reach an agreement with its private creditors, and the International Monetary Fund cut its global growth forecast on Tuesday, "risk sentiment has received some support from better economic data out of Europe," said Barclays Capital strategists.
They were referring to preliminary data out Tuesday, which showed private-sector economic activity in the euro-zone unexpectedly ticked up in January.
In Sydney, meanwhile, banking stocks advanced after quarterly inflation data appeared tame enough to keep hopes alive for an interest-rate cut from the Reserve Bank of Australia.
Mortgage lenders on the move included Westpac Banking Corp., up 3.5%, while Commonwealth Bank of Australia gained 2.4%, and National Australia Bank Ltd added 2%.
Property owners advancing included Westfield Group Australia, up 2.8%, and CFS Retail Property Trust, which ended 1.5% higher.
CLSA upgraded both firms to outperform on Wednesday.
In other markets;
Markets in Taiwan, Shanghai and Taiwan had the day off
Korea’s Kospi Index edged up 2.34 points, or 0.2%, to 1,952.23
Singapore’s Straits Times Index marched ahead 42.26 points, or 1.5%, to 2,891.64
New Zealand’s NZX 50 Index regrouped 11.94 points, or 0.4%, to 3,280.10
Australia’s S&P/ASX 200 Index grew 47.11 points, or 1.1%, to 4,271.34
