Tokyo and Hong Kong shares stood out in a broadly positive day for Asian stock markets Wednesday, helped respectively by a weaker yen and hopes for Chinese policy-easing.
Japan’s Nikkei 225 Index bolted 151.53 points, or 1.8%, higher to 8,533.53
The Hang Seng Index in Hong Kong climbed 261.50 points, or 1.4%, to 18,520.53
Japanese stock gains came as the dollar bought ¥78.80, up from ¥78.74 in late North American trading Tuesday and Monday’s late trading level of ¥78.33. The euro , meanwhile, recovered from sub-¥98 levels Tuesday to trade at ¥98.51.
The yen dropped sharply on Tuesday after Group of Seven finance ministers and central bank governors held a conference call in which they agreed to closely monitor developments in Europe.
Japan’s Finance Minister Jun Azumi said after the call that the discussion centered on Europe, but that the G-7 also had no objection to Tokyo taking action to curb excessive volatility and disorderly moves for the yen.
However, Japan is likely to tread cautiously ahead of Greece’s election on June 17. Similarly, the European Central Bank’s interest-rate meeting due later Wednesday isn’t widely expected to result in a move from the current level of 1% for euro-zone rates ahead of the Greek vote.
Still, even a small amount in weakness for the yen often brings relief for the Japanese equity market, and major exporters were supporting the Nikkei Average on Wednesday.
Sharp Corp. shot 6.9% higher, Nikon Corp gained 3.5%, and Mazda Motor Corp. climbed 1.3%.
Shares of Nintendo Co. fell 1.8%, however, after failing to offer pricing or a launch date for its new Wii-U videogame console at its publicity event at the E3 industry show.
Banks were also advancing in Tokyo, with Shinsei Bank Ltd. up 1.2%, and Nomura Holdings Inc. higher by 4.8%.
Hong Kong-listed banks were similarly stronger, with HSBC Holdings PLC up 2.6% and Bank of Communications Co. rising 2%.
Insurance firms performing well included Ping An Insurance Group Co., up 3.5%, and China Life Insurance Co. up 2.2%.
Property firms were also on the move, with China Resources Land Ltd. ahead by 3.1% and Henderson Land Development Co. up 4.9%.
The gain followed a front-page editorial in the state-run China Securities Journal saying Beijing should cut interest rates.
In Australia, energy firms improved notably for the second straight session, with Santos Ltd. up 0.9%, and Whitehaven Coal Ltd. rallying 2.6%.
Nymex crude-oil futures climbed in electronic trading Wednesday, rising 1.3% to $85.39 U.S. a barrel, extending an advance made in regular trading Tuesday after unexpectedly upbeat data on the U.S. services sector.
That data also led to gains for U.S. stock markets on Tuesday, prior to which, the Dow Jones Industrials had fallen in the last four trading sessions.
Despite Wednesday’s gains, most Asian stocks were still showing week-to-date losses, knocked by concern that Europe’s debt troubles were spilling over to the global economy. Japan’s outsized move on Wednesday, however, lifted the Nikkei into positive territory for the week.
In other markets
Shanghai’s CSI 300 Composite Index dropped 1.44 points to 2,557.40
Singapore's Straits Times Index jumped 48.52 points, or 1.8%, to 2,760.53
Taiwan’s Taiex Index prospered 55.70 points, or 0.8%, to 7,056.15
New Zealand’s NZX index recovered 43.72 points, or 1.3%, to 3,464.52
Australia’s ASX Index added 11.60 points, or 0.3%, to 4,055.29
Korean markets had the day off
