Asian stock markets moved between small gains and losses Wednesday, as investors weighed the chances of global policy action with worries about developments in Europe in the run-up to this weekend’s election in Greece.
Japan’s Nikkei 225 Index regained 51.12 points, or 0.6%, to 8,587.84
The Hang Seng Index in Hong Kong rocketed higher 153.96 points, or 0.8%, to 19,026.52
Among decliners, Hong-Kong-listed apparel firm Esprit plummeted 19.3% after the firm announced that Chief Executive Officer Ronald van der Vis would resign for personal reasons, effective July 1.
The resignation was the latest event in what’s been a rough period for the Europe-exposed retailer. Last September, Esprit reported a 98% drop in fiscal-year profit and said it would invest heavily to reinvigourate itself, while declaring it had "lost its soul."
In Tokyo, Canon Inc. fell 1.1% after Credit Suisse cut its price target for the shares.
Banks were weighing in Australia, with investment bank Macquarie Group Ltd. down 2.9%, and retail bank Australia & New Zealand Banking Group Ltd. lower by 1.1%.
The week has proved to be a volatile one so far for global stock markets grappling with last weekend’s Spanish bank bailout ahead of Sunday’s crucial elections in Greece.
In an Illustration of just how concerned investors are about the prospects for Europe, Spanish government bond yields reached a record high on Tuesday.
But, at the same time as fears about European developments have deepened, hopes for stimulus to counter those concerns have gained traction.
Sources of hope for such possible action include the U.S. Federal Reserve. On Tuesday, Chicago Fed President Charles Evans said the central bank would be in favour of moves to spur more rapid jobs growth.
Optimism that policy makers would step in to limit the fallout from Europe to the global economy helped gold and oil futures gain Tuesday, along with U.S. stocks, and gave a boost to commodity-related shares in Asia.
Gainers in the sector included Sumitomo Metal Industries Ltd., up 1.7%, and Toho Zinc Co., higher by 1.4% in Japan.
Australian iron-ore miner Fortescue Metals Group Ltd. rose 2.8% after signing a deal to consolidate its magnetite interests with China’s Baoshan Iron & Steel Co., which was trading flat in Shanghai.
Oil giant Cnooc Ltd. rose 1.7% in Hong Kong, even as benchmark U.S. crude-oil futures pared gains in Asian morning trade.
Japanese machinery stocks got a mild boost from April data showing core machinery orders rose a stronger-than-expected 5.7% in the month, with Fanuc Corp. up 0.4% and Denso Corp. higher by 0.5%.
The Japanese market also benefited from a strong rebound for shares of heavyweight Fast Retailing Co.. The stock rose 1.5% Wednesday to pare month-to-date losses to 11.6%.
In other markets
Shanghai’s CSI 300 Composite Index gained 40.46 points, or 1.6%, to 2,580.64
Korea’s Kospi Index added 4.58 points, or 0.3%, to 1,859.32
Singapore's Straits Times Index dropped 10.20 points, or 0.4%, to 2,786.88
Taiwan’s Taiex Index climbed 16.75 points, or 0.2%, to 7,088.83
New Zealand’s NZX index let go of 43.87 points, or 1.3%, to 3,381.73
Australia’s ASX Index dipped 9.09 points, or 0.2%, to 4,063.79
