Politics worked to split stock performance in Asia on Thursday, with Tokyo shares getting a lift from expectations for new elections and stepped up calls for more aggressive easing by Japan’s central bank, while China’s leadership change did little to boost shares.
Japan’s Nikkei 225 Index ballooned 164.99 points, or 1.9%, to 8,829.72, to end at a one-week high
In Hong Kong, the Hang Seng index fell 333.06 points, or 1.6%, to 21,108.93, showing little reaction after China unveiled the makeup of its top Communist Party leadership body Thursday.
The U.S. dollar rose firmly above 80 yen (about $1) overnight — and had climbed to ¥80.81 by Thursday afternoon — amid speculation that the country is close to an election that could propel opposition leader Shinzo Abe, a monetary dove, to become the next prime minister.
The Japanese opposition’s Abe on Thursday urged the Bank of Japan to pursue aggressive monetary reflation. He called for the central bank to adopt an inflation target in the 2%-3% range, urging unlimited liquidity provisions in order to meet the CPI target.
Abe also said he would push to amend the law so that the policy board of the Bank of Japan would be obligated to meet official inflation targets.
In Tokyo, consumer electronics giant Sony Corp. tumbled 8.9% after the global conglomerate announced after Wednesday’s close that it plans to issue the equivalent of about $1.85 billion U.S. in convertible bonds.
Among other tech names, NEC Corp. rose 3.7%, and Nintendo Co. climbed 1.7%.
In the auto sector, Mazda Motor Corp. rallied 5.6%, and Nissan Motor Co. rose 2.6%.
Toyota Motor Corp. shares climbed 5% despite a 2.77-million-vehicle recall announced just before the close on Wednesday.
Tech and auto competitors trading in South Korea didn’t fare so well, with Hyundai Motor Co. down 2.3% and chip heavyweight Samsung Electronics Co. retreating 1.8%.
Back in Tokyo, real-estate companies were also notably higher amid the monetary and fiscal easing speculation, with Sumitomo Realty & Development Co. up 4.6%, and Mitsubishi Estate Co. ahead by 3.3%.
Banks also rallied, with Japan’s big three lenders taking back some ground lost Wednesday ahead of earnings reports.
Mitsubishi UFJ Financial Group Inc. rose 3.2%, Mizuho Financial Group Inc. added 3.3% and Sumitomo Mitsui Financial Group Inc. — the only of the three to post a rise in profit — was also up 3.3%.
The trio of banks reported a collective $7.5 billion U.S. writedown for their stockholdings, but they managed to reap gains from their bond portfolios.
There were some big share-price moves in Asia on Thursday, with Hong Kong-listed Tencent Holdings Ltd. shares tumbling 7% after the firm’s third-quarter results missed estimates, with the Internet company warning that online-advertising-revenue growth may slow, due partly to softer Chinese economic growth.
On the other hand, Hong Kong shares of Esprit Holdings Ltd. soared 22% after Michael Ying — the apparel firm’s chairman from 1993 to 2006 — spent US$35 million to raise his stake in the company to nearly 6% from 4.79%, according to an exchange filing.
Lenders fell in Hong Kong on Thursday, with Bank of Communications Co. down 2.7%, while Industrial & Commercial Bank of China Ltd. moved lower by 2%.
China Petroleum & Chemical Corp. fell 1.9% in Hong Kong.
Australian miners, a key supplier of metals to facilitate China’s infrastructure development, also lost ground, with Rio Tinto Ltd. down 1.8% and BHP Billiton Ltd. lower by 1.9%.
Also in Sydney, Qantas Airways Ltd. shares jumped 4.1% after the company told investors that it would buy back 100 million Australian dollars ($103.5 million U.S.) worth of shares, starting next month.
The carrier also said it expected to report a fiscal first-half adjusted pretax profit in a range of A$180 million to A$230 million, roughly flat from a year earlier.
CHINA
China announced Thursday that Vice President Xi Jinping would assume leadership of what some reports have suggested will be a more conservative leadership team.
The Shanghai CSI 300 Composite Index docked 29.49 points, or 1.3%, to 2,193.62
In Shanghai trade, China Construction Bank Corp. lost 2.3%, while Bank of China Ltd. fell 0.7%.
Chinese commodity-linked firms also fell, with Aluminum Corp. of China Ltd. down 2.1% in Hong Kong and 2% lower in Shanghai.
In other markets
In Singapore, the Straits Times Index doffed 32.11 points, or 1.1%, to 2,945.92
Korea’s Kospi index gave back 23.32 points, or 1.2%, to 1,870.72
Taiwan’s Taiex Index shed 15.91 points, or 0.2%, to 7,143.84
New Zealand’s NZX 50 decreased 4.06 points, or 0.1%, to 3,951.50
Australia’s ASX Index lost 39.12 points, or 0.9%, to 4,349.25
