Most Asian markets ended higher Thursday, with Australian stocks shrugging off remarks the nation was unlikely to post a budget surplus this fiscal year to end at a 17-month high, while Japanese shares fell on profit-taking after strong recent gains.
The Nikkei 225 Index in Japan faded 121.07 points, or 1.2%, to 10,039.33
In Hong Kong, the Hang Seng index gained 36.41 points, or 0.2%, to 22,659.78
In Korea, investors returned from a one-day break for an election that ushered in the country’s first female president, Park Geun-hye.
The broad regional gains came on subdued investor sentiment after an overnight retreat on Wall Street amid doubts that U.S. politicians will reach an agreement to avert the fiscal cliff.
Also staging a retreat, the Nikkei Stock Average fell 1.2% in Tokyo for its first decline in four sessions. The drop came even as the Bank of Japan announced a further expansion to its asset-purchase program, by another 10 trillion yen ($119 billion U.S).
The decline came as the U.S. dollar strengthened, flirting with the ¥84 mark from ¥84.44 in late North American action Wednesday.
Shares of several yen-sensitive exporters pulled back after strong recent gains, Nikon Corp. losing 2.9%.
Mitsubishi Motors Corp. fell 5.5% after the auto maker received the Japanese transport ministry’s first-ever public rebuke over product recalls, following its fourth recall over the same problem involving mini-vehicle engine-oil leaks. Nissan Motor Co. tumbled 7.4%.
In Hong Kong trade, Aluminium Corp. of China Ltd. fell 2.2% after U.S. aluminum rival Alcoa Inc. saw its debt rating placed on review for downgrade at Moody’s Investors Services on concerns over falling aluminum prices.
Shares of London-headquartered HSBC Holdings PLC gained 1.4% and Standard Chartered PLC rose 3.1%, after Credit Suisse upgraded the European banking sector to benchmark from a small underweight, helping to offset losses elsewhere in Hong Kong.
Banks were strong in Seoul trading, helping support the Seoul market, with Hana Financial Group Inc. rising 1.7%, and Woori Finance Holdings Co. up 2.1%.
In Sydney, the broad market gains came as investors were unfazed by Treasurer Wayne Swan’s remarks the government was unlikely to meet its target for a budget surplus in the fiscal year ending June 30, 2013.
Utility-sector companies advanced, with AGL Energy Ltd. up 1.9% and Spark Infrastructure Group ahead by 1.2%.
In other markets
The Shanghai CSI 300 Composite Index gained 13.71 points, or 0.6%, to 2,384.82
In Singapore, the Straits Times Index inched forward 16.95 points, or 0.5%, to 3,175.52
South Korea’s Kospi index returned from an election day holiday to pick up 6.41 points, or 0.3%, to 1,999.50
Taiwan’s Taiex Index slumped 82.01 points, or 1.1%, to 7,595.46
New Zealand’s NZX 50 gained 52.45 points, or 1.3%, to 4,075.45
Australia’s ASX Index advanced 16.33 points, or 0.4%, to 4,634.11
