Chinese stocks jumped on Wednesday, leading gains for Asia markets, as China’s incoming leaders made reference to policy continuity and stability in their first official gathering since last month’s leadership convention.
The Nikkei 225 Index in Japan added 36.38 points, or 0.4%, to 9,468.84
In Hong Kong, the Hang Seng index ballooned 470.94 points, or 2.2%, to 22,270.91
Banks gaining ground in Hong Kong included HSBC, up 1.7%, while China Merchants Bank Co. rose 2.6%, and Bank of East Asia Ltd. climbed 2.2% after a Nikkei report that it’s planning a share sale to Japan’s Sumitomo Mitsui Banking Corp.
Mainland Chinese property developers also stood out in Hong Kong, with China Resources Land Ltd., up 2.5%, while Hong Kong’s Wharf Holdings Ltd. gained 4.3%.
Over in Tokyo, Fast Retailing Co. advanced 3% after the market heavyweight reported late Tuesday that November same-store sales in Japan for its Uniqlo casual clothing chain rose 13.7%.
Consumer-electronics firm Sharp Corp. jumped 4% after it announced an investment of up to $120 million from Qualcomm Inc.
However, losses for some tech and industrial firms worked to curb upside for the Japanese market. Fujitsu Ltd. gave up 1.9%, and Renesas Electronics Corp. retreated 1.4%.
Technology firms saw some gains in Korea, however, with heavyweight Samsung Electronics Co. up 1.8%, SK Hynix Inc. ahead by 1.6%, and LG Display Co. gaining 2.3%.
Banks moved higher in Australia after Tuesday’s interest rate cut, with Commonwealth Bank of Australia up 1% and Westpac Banking Corp. rising 0.6%.
National Australia Bank Ltd. improved by 0.3% after it said it would pass on 20 basis points of the Reserve Bank of Australia’s 25-basis-point cut made Tuesday to its customers, the first of the major banks to do so.
CHINA
HSBC’s Chinese economics team said comments from a meeting of China’s new leaders Tuesday implied that supportive economic policy would remain in place in China over coming quarters.
The meeting, the first official assessment of the Chinese economy following November’s leadership handover, saw leaders call for policy continuity and stability, the economists noted.
The Shanghai CSI 300 Composite Index roared ahead 76.41 points, or 3.6%, to 2,207.88
Amid the broad-based gains for Chinese shares, insurance companies outperformed, with Ping An Insurance Group Co. rising 5.1% in Hong Kong after HSBC Holdings PLC agreed to sell its stake in the insurer.
Ping An’s Shanghai shares, jumped 4.2%, with rival China Life Insurance Co.’s Shanghai-listed shares added 2.9%.
Mainland Chinese property developers also stood out in Hong Kong, with China Resources Land Ltd., up 2.5%, while Hong Kong’s Wharf Holdings Ltd. gained 4.3%.
On the Chinese mainland, real-estate major China Vanke Co rose 2.1% in Shenzhen after its November sales doubled in November to 17.13 billion yuan ($2.75 billion U.S.) compared to a year ago. Vanke rival Gemdale Corp. advanced 4.1% in Shanghai.
In other China action, shares of heavy equipment makers Zoomlion Heavy Industry and Sany Heavy Industry jumped 6% and 10% respectively as the meeting by China’s new leaders was seen as giving a boost to urban construction projects.
In other markets
In Singapore, the Straits Times Index gained 13.80 points, or 0.5%, to 3,075.92
Korea’s Kospi index recovered 11.86 points, or 0.6%, to 1,947.04
Taiwan’s Taiex Index gained 48.07 points, or 0.6%, to 7,649.05
New Zealand’s NZX 50 dropped 8.45 points, or 0.2%, to 4,007.25
Australia’s ASX Index took on 16.82 points, or 0.4%, to 4,520.40
