Most Asian stocks rallied Monday as news that Cyprus and its international lenders reached a bailout agreement removed fears of the nation’s exit from the euro zone, also helping boost U.S. equity futures, the euro and crude-oil prices.
In Japan, the Nikkei 225 index recovered 207.93 points, or 1.7%, to 12,546.46
In Hong Kong, the Hang Seng index gained 135.85 points, or 0.6%, to 22,251.15
The broad terms of the bailout agreement pave the way for Cyprus to receive up to 10 billion euros ($13 billion U.S.) in bailout funds, while protecting depositors holding less than €100,000 in their bank accounts from any losses.
Also, Moody’s Investors’ Service said the crisis in Cyprus was credit negative for all sovereign ratings in the euro area.
Among other asset classes, the euro rose back above the $1.30 U.S. level, while benchmark U.S. crude-oil futures advanced about 0.4% in commodities trading.
Several financial stocks across the region joined in the relief rally.
Mitsubishi UFJ Financial Group Inc. rose 1.6% in Tokyo, and Woori Finance Holdings Co. added 3.8% in Seoul. In Sydney, Macquarie Group Ltd. gained 2.2%, and Westpac Banking Corp. added 1.7%.
In Japan, retailers extended the strong gains they had enjoyed in recent sessions, with Takashimaya Co. jumping 7.5%, and Fast Retailing Co. adding 4.7%.
The advance came even as a European Union summit with Japan was delayed due to the Cyprus crisis. Officials from the two economies are due to discuss a wide-ranging free-trade deal.
In Hong Kong, the market saw support by gains in China Construction Bank Corp. and refiner China Petroleum & Chemical Corp., or Sinopec, following their 2012 earnings reports.
CCB shares climbed 2.3% after the company narrowly beat estimates with a 14% increase in 2012 profit, while Sinopec shares jumped 2.7% in spite of a 13% drop in its annual profit.
In Shanghai, shares of CCB climbed 1.7%, but Sinopec fell 1.6%.
In other markets;
The Shanghai CSI 300 Composite 300 index edged back 5.21 points, or 0.2%, to 2,613.10, in a choppy trading session
In Korea, the Kospi Index forged ahead 28.96 points, or 1.5%, to 1,977.67
In Taiwan, the Taiex Index grew 59.90 points, or 0.8%, to 7,856.12
The Singapore Straits Times Index eked up 8.91 points, or 0.3%, to 3,267.48
In New Zealand, the NZX 50 index faded 2.16 points, or 0.1%, to 4,340.73
In Australia, the S&P/ASX added 22.94 points, or 0.5%, to 4,990.20
