Japanese stocks soared to again lead a broad rally for Asian markets Wednesday, with the Nikkei Stock Average easily sailing over the 10,000-point mark for its highest finish since early April on the back of strong gains for financial and exporter shares.
The Nikkei 225 Index in Japan rocketed 237.39 points, or 2.4%, to 10,160.04, taking its year-to-date gains to more than 20%.
In Hong Kong, the Hang Seng index gained 128.64 points, or 0.6%, to 22,623.37, to reach a closing level it hasn’t seen since August last year.
Banks were gaining around the region. In Hong Kong, shares of heavyweight HSBC Holdings PLC added 0.5%, and China Construction Bank Corp. rose 1%.
Japanese financials were also notable gainers, with Mitsubishi UFJ Financial Group Inc. soaring 6.1%, Nomura Holdings Inc. climbing 4.7%, and Resona Holdings Inc. up 3.1%.
Deutsche Bank upgraded its rating on major banks to overweight from market-weight, saying that a gradual increase in yields on Japanese government bonds would be positive for bank shares.
Also, expectations of a policy drive the end an era of deflation in the country will likely send risk premiums lower and very long-term interest rates higher, which should be "basically positive for insurance stocks," the analysts said. The Bank of Japan is due to review its monetary policy Thursday.
Among Japanese insurers Wednesday, Tokio Marine Holdings Inc. climbed 4.9% and MS&AD Insurance Group Holdings Inc. jumped 7.1%.
Exporters were also strong in Tokyo on dollar strength, as the greenback traded around 84.33 yen, from ¥84.20 in late North American trading on Tuesday.
Commonwealth Bank strategists lifted their dollar/yen end-2013 forecast to ¥98 from ¥83 Wednesday.
In the auto sector, Honda Motor Co. climbed 6.2%, and Nissan Motor Co. advanced 5.5%.
Toyota Motor Corp. rose 3.5%, after a report in the Nikkei business daily that the firm plans to keep its global production at the current record high of about 9.9 million vehicles.
Shares of Esprit Holdings Ltd.tumbled 4.5% in Hong Kong after issuing a profit warning, saying that it expects a loss in the first half of fiscal 2013.
Nomura cut its stance on stock to reduce after the warning.
Surfwear retailer Billabong International Ltd. fell 13.3% in Sydney as it resumed trading after reportedly receiving a fresh takeover bid Monday worth 526.8 million Australian dollars ($555.2 million U.S.). The new bid appeared to value the firm at less than previous offers from TPG and Bain Capital.
However, the Australian benchmark index overall managed to notch its seventh day of gains in nine.
Notable climbers included energy companies, with Linc Energy Ltd. up 4.9%.
Whitehaven Coal Ltd. jumped 8.1% after a report that Chinese coal firm China Shenhua Energy Co. had approached the firm about buying some assets but was told to make a full takeover bid. Shenhua shares rose 3.2% in Hong Kong.
South Korea shares were due to resume trading Thursday after the elections, in which conservative Park Guen-hye and liberal Moon Jae-in are the leading contenders. The most recent national polls indicated it would be a close call as to whether Park or Moon came to power, according to The Wall Street Journal.
In other markets
The Shanghai CSI 300 Composite Index gained 2.99 points, or 0.1%, to 2,371.11
In Singapore, the Straits Times Index inched forward 1.78 points to 3,158.57
The South Korean market was closed for the country’s presidential election
Taiwan’s Taiex Index improved 33.73 points, or 0.4%, to 7,677.47
New Zealand’s NZX 50 gained 43.75 points, or 1.1%, to 4,023
Australia’s ASX Index picked up 22.57 points, or 0.5%, to 4,617.78
