Stocks in Hong Kong and Australia jumped to multi-month highs Wednesday as Asian markets began their 2013 journey on a buoyant note after the U.S. House of Representatives voted in favour of legislation to undo much of the fear over fiscal cliff.
Hong Kong’s Hang Seng Index rallied and Australia’s S&P/ASX 200 gained, pushing both indexes to their highest finish since June 2011.
In Hong Kong, the Hang Seng index soared 655.06 points, or 1.9%, to 23,311.98
Mainland Chinese and Japanese stock markets remained closed for holidays, along with those in New Zealand.
The fiscal-cliff have been a source of concern for regional markets in the last several weeks because of its potential impact on the U.S. economy.
Chinese financial and property stocks fronted the rally in Hong Kong, with China Life Insurance Co. jumping 6.7% and Ping An Insurance Group Co. climbing 5.2%, while China Resources Land Ltd. soared 6.2%.
The rally also followed official data Tuesday showing that China’s manufacturing Purchasing Managers’ Index (PMI) remained unchanged at 50.6 in December, below expectations, but above a 50-point threshold that indicates an improvement in activity.
Meanwhile, HSBC data showed PMIs for South Korea and Taiwan also climbed back above 50 in December. Korean PMI rose to 50.1 from 48.2 in November, while the index for Taiwan shot up to 50.6 from 47.4 in November.
Financial stocks also rallied in Seoul, where Woori Financial Co. jumped 3% and Hana Financial Group Inc. rose 4.6% in Seoul.
Commodity stocks climbed across the region as prices of crude oil and several metals rose.
Cnooc Ltd. gained 3.1% and Aluminum Corp. of China Ltd. jumped 6.2% in Hong Kong, while BHP Billiton Ltd. rose 2% and Rio Tinto Ltd. climbed 2.4% in Sydney. Steel maker Posco added 3.3% in Seoul.
The rise in Posco shares came after the company and its consortium partners agreed to buy a 15% stake in an ArcelorMittal-controlled iron-ore mining firm in Canada for $1.1 billion U.S.
In other markets
In Singapore, the Straits Times Index moved up 34.66 points, or 1.1%, to 3,201.74
Korea’s Kospi Index climbed 34.05 points, or 1.7%, to 2,013.10
Taiwan’s Taiex Index grew 79.72 points, or 1%, to 7,779.22
Australia’s ASX Index rocketed 56.99 points, or 1.2%, to 4,705.94
