Asia markets extended their rally on Tuesday, with Chinese stocks jumping on hopes for a policy stimulus from Beijing, while Taiwanese shares soared after the government made some changes to a proposed capital gains tax.
Japan’s Nikkei 225 Index gained 63.93 points, or 0.7%, to 8,657.08
The Hang Seng Index in Hong Kong zoomed 254.47 points, or 1.4%, to 19,055.46
In Hong Kong, China Resources Land Ltd. soared 5.1% and Agile Property Holdings Ltd. spiked 6.9%, while Ping An Insurance Group Co. climbed 3.2%.
The day’s broad gains came despite mounting worries about Spain’s financial sector, and as a surge in government borrowing costs surge rattled investors.
Growth-tied resource firms notched sharp gains across Asia, amid expectation that major buyer China would ramp up spending.
In Sydney, Fortescue Metals Group Ltd. surged 7.5% and diversified miner Rio Tinto Ltd. traded up 2.2%. Shares of Aluminum Corp of China Ltd. jumped 5.6% in Hong Kong and 1.5% in Shanghai.
Strength for firms in the key shipbuilding sector supported broader gains in Seoul as investors returned after Monday’s holiday. Hyundai Heavy Industries Co. rose 3.4% and Daewoo Shipbuilding & Marine Engineering Co. surged 6.6%.
In Tokyo, several technology exporters advanced, with Advantest Corp. rallying 4.1% and Sony Corp. rising 2.3%.
Shares of Panasonic Corp. jumped 3.9% after a Nikkei report that the firm plans to cut up to 4,000 jobs from its headquarters through measures including early retirement and transfers, as competition from overseas manufacturers intensifies.
Renesas Electronics Corp. extended the sharp losses from the previous session, slumping another 16.4% after saying it will outsource chip production to Taiwan Semiconductor Manufacturing Co. Shares plunged 10.6% on Monday following reports the firm with plans mass jobs cuts as part of a restructure. TSMC climbed 0.9% in Taipei.
The rally in Taipei came following news that the government had made more changes to an unpopular proposal to reimpose capital gains tax. The latest version, proposed by the ruling Kuomintang Monday, led finance minister Christine Liu to resign, according to a Dow Jones Newswires report.
But the stock market cheered the changes, with Asustek Computer Inc., Inotera Memories Inc. and Nanya Technology Corp. among those rising by the day’s 7% limit.
CHINA
For Chinese stocks, the performance marked the second straight day of strong gains this week, amid reports that policy makers were expediting approvals for investment projects after Premier Wen Jiabao last week highlighted the need to stimulate growth.
Shanghai’s CSI 300 Composite Index advanced 36.17 points, or 1.4%, to 2,650.85
Among the notable gainers, Anhui Jianghuai Automobile Co. rose 4.1%, China Eastern Airlines Corp. climbed 4.2% and Chongqing Brewery Co. spiked by the day’s 10% limit in Shanghai.
Shares of Guoyuan Securities Co. rose 4% and telecommunication equipmaker ZTE Corp. gained 2.8% in Shenzhen; in Hong Kong, shares of Chinese department store operator Golden Eagle Retail Group Ltd. jumped 4.9%, while Lianhua Supermarket Holdings Co. added 4.8%.
Several financial and property firms also advanced. China Vanke Co. rose 1.1% in Shenzhen, while Cinda Real Estate Group Co. rose 1.1% and Agricultural Bank of China Ltd. each gained in Shanghai.
In other markets;
Korea’s Kospi Index returned from holiday to gain 25.74 points, or 1.4%, to 1,849.91
Singapore's Straits Times Index added 14.63 points, or 0.5%, to 2,801.85
Taiwan’s Taiex Index surged 206.29 points, or 2.9%, to 7,342.29
New Zealand’s NXZ Index improved 16.04 points, or 0.5%, to 3,478.29
Australia’s ASX Index strengthened 46.39 points, or 1.1%, to 4,114.41
