Chinese stocks shot higher Thursday to lead in an upbeat session for Asian markets, with analysts attributing the gains to investors’ buying on cheap valuations and hopes of market-boosting measures.
The Nikkei 225 Index revived 43.17 points, or 0.5%, to 8,948.87
The Hang Seng Index in Hong Kong rocketed 234.56 points, or 1.1%, to 20,762.29
Industrial & Commercial Bank of China Ltd. added 1.8% in Hong Kong.
Property stocks also advanced, with China Resources Land Ltd. up 1.8% and Guangdong Investment Ltd. rising 3.5%.
Esprit Holdings Ltd. was a notable decliner, adding to previous session losses with a 5.7% drop, one day after the fashion retailer delivered its fiscal-year profit result.
The day’s performance came despite a decline for U.S. stocks on Wednesday, as protests in Europe over austerity measures undermined investor confidence.
Exporters advanced in Seoul, as Samsung Electronics Co. rose 1.3% and Hyundai Motor Co. traded up 0.6%.
Auto makers headed higher in Tokyo, with Honda Motor Co. up 1% and Suzuki Motor Co. rising 1.4%.
Sharp Corp. tumbled 3.9% amid reports the electronics firm may withdraw its solar panel business out of Europe and the U.S. as part of a cost-cutting measure.
Defensive stocks outperformed in Sydney, as blood-products maker CSL Ltd. rose 1.8% and hearing-device maker Cochlear Ltd. added 1.4%.
Shares of Woolworths Ltd. traded down 0.9% after the retailer unloaded its Dick Smith Electronics arm for 20 million Australian dollars ($20.7 million U.S.) to Anchorage Capital Partners.
In other Hong Kong action, China’s offshore oil exploration company Cnooc added 2.1%.
CHINA
Gains in China were driven by investors’ optimism following unsubstantiated reports, which circulated mid-morning, that the China Securities Regulatory Commission would hold a news conference later in the trading day.
However, hopes of a big announcement faded after the China securities regulator reportedly said the briefing scheduled for later in the day would focus on information security rather than supportive measures.
Shanghai’s CSI 300 index ballooned 66.83 points, or 3.1%, to 2,251.72
Data released Thursday showed the People’s Bank of China had injected a net 365 billion yuan (about $58 billion U.S.) this week into the Chinese banking system, ahead of the current quarter’s end and before the Golden Week holidays next week.
Some analysts said state-controlled investment funds were likely active buyers in Thursday’s China session, helping to shore up the market.
Brokerage firms were among the major gainers in Shanghai, with Sinolink Securities Co. jumping by the day’s 10% limit, while Southwest Securities Co. climbed 6.9% and Haitong Securities Co. rose 6.3%.
In other markets
Korea’s Kospi index improved 8.26 points, or 0.4%, to 1,988.70
The Singapore Straits Times Index regained 12.75 points, or 0.4%, to 3,059.43
Taiwan’s Taiex Index took on 14.17 points, or 0.2%, to 7,683.80
New Zealand’s NZX index dipped 0.3 points to 3,809.03
Australia’s ASX Index picked up 22.57 points, or 0.5%, to 4,384.17
