Most Asian markets ended higher Tuesday after signs of progress in talks to avert the U.S. fiscal cliff lifted stocks on Wall Street overnight, with Australian shares ending at their highest level in more than 16 months.
Japanese stocks ended lower, weighed by power utilities after a government-appointed panel said a nuclear reactor was likely sitting on an active earthquake fault, raising fears that it may be shut down, while Chinese equities declined after strong recent gains.
The Nikkei 225 Index in Japan sliced off 8.43 points, or 0.1%, to 9,525.32
In Hong Kong, the Hang Seng index advanced 47.22 points, or 0.2%, to 22,323.94
Japanese shares were weighed down by power utilities, after a government-appointed panel of experts found that a nuclear reactor operated by Japan Atomic Power Co. — in which many of the major utilities hold ownership stakes — could be sitting on an active earthquake fault.
Shares of Chubu Electric Power Co. tumbled 4.1% and Kansai Electric Power Co. skidded 4.4%, while Tokyo Electric Power Co. dropped 1.4%.
Meanwhile, Renesas Electronics Corp. rose 0.3% after the firm confirmed late Monday that it will receive up to 200 billion yen ($2.43 billion U.S.) of capital in a deal that will see a government-backed fund emerge with a near-70% stake in the loss-making technology firm.
Sharp Corp. jumped 6.9% after a Nikkei report that Mitsubishi UFJ Trust and Banking Corp. and Mizuho Trust & Banking Co. will lend the firm ¥20 billion, while Resona Bank is also mulling a ¥20 billion loan.
The lenders’ parent firms — Mitsubishi UFJ Financial Group Inc. and Resona Holdings Inc.— saw their shares fall 0.5% and 0.6%, respectively.
Shares of iron-ore producers advanced after iron-ore prices climbed in the spot market.
In Hong Kong, Citic Pacific Ltd. which has mining rights in an iron-ore project in Western Australia, climbed 3.9%.
In Sydney, iron-ore extractor Fortescue Metals Group Ltd. climbed 4%, diversified mining group BHP Billiton Ltd. rose 1.3%, and rival Rio Tinto Ltd. advanced 0.8%.
On the downside in Hong Kong, Cathay Pacific Airways Ltd. lost 1.9% after its unions sanctioned industrial action over the Christmas holiday period unless the airline reopened talks with flight attendants over wages.
HSBC Holdings PLC gained 0.3% despite news it will pay $1.9 billion U.S. to settle a money laundering probe in the U.S.
Shares of Standard Chartered PLC rose 0.6%, also climbing in spite of news it’s agreed to pay $327 million U.S. in penalties to U.S. regulators for alleged violations of U.S. sanctions against Iran and other nations. The gains came as news of the settlement lifted uncertainty over the matter.
CHINA
Property stocks declined in Shanghai, reversing some of their recent gains. Gemdale Corp. dropped 1.7% and Poly Real Estate Group Co. fell 2.1%.
The Shanghai CSI 300 Composite Index subtracted 12.55 points, or 0.6%, to 2,258.50
In other markets
In Singapore, the Straits Times Index gained 3.99 points, or 0.1%, to 3,118.33
Korea’s Kospi index added 7.20 points, or 0.4%, to 1,964.62
Taiwan’s Taiex Index gained 4.19 points, or 0.1%, to 7,613.69
New Zealand’s NZX 50 fell 4.59 points, or 0.1%, to 4,026.18
Australia’s ASX Index improved 18.06 points, or 0.4%, to 4,576.01
