Asian stocks rose sharply Monday on news Spain would seek a bailout for its banks, the health of which has been a source of much global anxiety, although analysts said upcoming Greek elections were likely to keep markets on edge.
Japan’s Nikkei 225 Index regained 165.64 points, or 2%, to 8,624.90
The Hang Seng Index in Hong Kong leaped 451.29 points, or 2.4%, to 18,953.63, its best one-day percentage advance since mid-January.
The broad advances reflected an easing over European jitters after Spain’s Finance Minister Luis de Guindos said the country is seeking European Union loans for as much as 100 billion euros ($125 billion U.S.) to help its struggling banking sector.
Monday’s gains in Asia were broad-based across the region, highlighted in Hong Kong by a 6.1% rally in shares of China Life Insurance Co., a 6.5% spike for ports operator Cosco Pacific Ltd., a 4.8% advance for Aluminum Corp. of China Ltd. and a 6.6% rise for mobile-service provider China Unicom Hong Kong Ltd.
The jump in Unicom shares came on news that its unlisted parent has acquired a 4.56% stake in the company from Telefonica S.A., a part of the total held by the Spanish telecommunication firm, in a €1.13 billion transaction ($1.74 billion U.S).
Shares of diversified Wharf Holdings Ltd. ended 2.2% higher in the upbeat market, reversing early losses. The stock had dropped more than 4% earlier in the day, after agreeing to buy new shares in developer Greentown China Holdings Ltd. by investing over $650 million. Greentown shares spiked 32.5%.
HSBC Holdings PLC, which has the highest weighting among the Hang Seng Index’s 49 constituents and is also one of the largest European banks, climbed 2.9% on the Spain news.
Financials also rallied elsewhere in the region, with Nomura Holdings Inc. rising 1.1%, and Daiwa Securities Group Inc. advancing 3.1% in Tokyo, while KB Financial Group Inc. gained 3.6% in Seoul, and Cathay Financial Holding Co. added 2.1% in Taipei.
In Japan, the euro’s return above the 100-yen level helped buoy exporters with an exposure to Europe.
Sharp Corp. rallied 8.2%, Mazda Motor Corp. climbed 3% and Canon Inc. advanced 3.5%.
Over in Seoul, blue-chip exporters were also outperformers, with SK hynix Inc. adding 6% to its value — helped also by a reported chip-development alliance with IBM Corp. — and LG Display Co. gaining 5.7%.
Most regional markets appeared to largely shrug off the mixed bag of Chinese economic data released over the weekend showing a broadly softening economy despite a strong trade account.
CHINA
But trading in mainland Chinese stocks was choppy, with some banks retreating on lingering worries their interest-rate margins would be hurt by last week’s rate cut from the People’s Bank of China
Shanghai’s CSI 300 Composite Index grew 33.94 points, or 1.3%, to 2,558.27
A few airline stocks also lost ground amid a weakening demand outlook. Air China Ltd. shrank 1.3%, China Eastern Airlines Corp. fell 1.9%
In other markets
Korea’s Kospi Index added 31.40 points, or 1.7%, to 1,867.04
Singapore's Straits Times Index moved higher by 49.92 points, or 1.8%, to 2,787.81
Taiwan’s Taiex Index gathered 120.58 points, or 1.7%, to 7,120.23
New Zealand’s NZX index inched forward 4.77 points, or 0.1%, to 3,454.24
Markets in Australia had the day off
