Asian stocks recovered from lackluster early Wednesday action to finish mostly higher, with Hong Kong leading the region amid some buying by funds, though volume remained light ahead of a key European summit.
Japan’s Nikkei 225 Index regained 66.50 points, or 0.8%, to close Wednesday at 8,730.49
The Hang Seng Index in Hong Kong gained 195.11 points, or 1%, to 19,176.95
One expert said buying by funds was helping the Hong Kong market, with some investors trying to pick up stocks cheaply ahead of Chinese economic data due out in the weeks ahead.
Property firms managed to gain in Hong Kong, with China Overseas Land & Investment Ltd. up 4.3% and China Resources Land Ltd. ahead by 4.9%.
HSBC’s chief China economist, Qu Hongbin, said that Beijing’s latest fiscal tweaks "are beginning to have an impact" on the Chinese economy, demonstrated by a surprise rebound of new lending in May and improved industrial production and investment growth.
Consumer plays also did well in Hong Kong, as shares of Prada SpA rallied 3.9%, while Chow Tai Fook Jewellery Group Ltd. jumped 6.4% after reporting a solid jump in annual profit. Luk Fook Holdings International Ltd. also gained 5.4%
Japanese retailers were also among regional gainers, with spending expected to pick up as consumers and businesses move their purchases forward to beat a hike in the sales tax, which the parliament passed Tuesday.
Fast Retailing Co. rose 1.8%, while Aeon Co. added 1.1%, and J. Front Retailing Co advanced 3.5%.
Media firms lifted the Australian index, with News Corp up 3.4% after the firm confirmed during U.S. trading hours Tuesday that it was considering splitting into two.
Elsewhere in the sector, Fairfax Media Ltd. rose 0.9%, Seven West Media Ltd. rose 3.5% and Ten Network Holdings Ltd. advanced 2%.
Among Asia’s notable decliners Wednesday, Seoul-traded shares of Hyundai Motor Co. dropped 3.1% and affiliate Kia Motors Corp. traded down 3.3%, with Reuters reporting the possibility of Hyundai workers staging a labour strike.
In other markets
Shanghai’s CSI 300 index settled 7.72 points, or 0.3%, to 2,447.20
Korea’s Kospi Index shed 0.16 points to 1,817.65
Singapore's Straits Times Index reacquired 35.97 points, or 1.3%, to 2,841.60
Taiwan’s Taiex Index gained 45.08 points, or 0.6%, to 7,183.01
New Zealand’s NZX index squeezed higher by 6.46 points, or 0.2%, to 3,387.78
Australia’s ASX Index rose 29.87 points, or 0.7%, to 4,043.17
