Japanese shares jumped to lead Asian markets by a big margin Monday, with the yen falling as investors interpreted a statement from Group of 20 nation officials as offering the international community’s support for Tokyo’s economic stimulus.
In Japan, the Nikkei 225 index surged 251.89 points, or 1.9%, to 13,568.37, getting a shot in the arm as the U.S. dollar inched closer to the psychologically important 100-yen level.
Hong Kong’s Hang Seng Index took on 30.80 points, or 0.1%, to 22,044.37
The G-20 leaders on Friday refrained from criticizing Japan for policies that have weakened the yen and provided a competitive boost to its exporters. They said Japan’s monetary-policy actions were intended to end deflation, while adding that the government must "define a credible medium-term fiscal plan."
In Hong Kong, China Life lost 1.9% and Ping An fell 0.8%, while Angang Steel Co. climbed 1.2% and Maanshan jumped 6.2%.
In Tokyo, meanwhile, exporters rallied to lead the advance, with the dollar buying ¥99.69 in Tokyo mid-morning trade, up from ¥99.52 in North America on Friday. The greenback hasn’t topped the ¥100 level since April 2009, according to data from FactSet Research.
Shares of Canon Inc. added 1.8%, Nissan Motor Co. gained 2.6%, and Fujitsu Ltd. jumped 3.2%.
Financials also rallied on the G-20’s support for Japan’s fight to end deflation, with Mitsubishi UFJ Financial Group Inc. rising 1.6%, and Shinsei Bank Ltd. climbing 2.3%.
Shares of Mitsui Engineering & Shipbuilding Co. soared 13% in heavy trading volumes after reports in Japanese media that the company is in preliminary talks for possible integration with Kawasaki Heavy Industries Ltd.
Shares of Kawasaki Heavy fell 0.9%.
Astellas Pharma Inc. rose 0.7% after the Nikkei newspaper reported the company likely booked a 14% increase in its group operating profit for the year ended March 31, beating projections.
Over in Australia, some commodity stocks advanced after gold prices rebounded to climb well over $1,400 U.S. an ounce. Shares of Perseus Mining Ltd. climbed 0.7%, while Newcrest Mining Ltd. inched up 2.2%.
Also in Sydney, shares of Oz Minerals Ltd. skidded 10.6% after cutting its forecast for copper production.
CHINA
The Shanghai CSI 300 slid 3.16 points, or 0.1%, to 2,530.67
The move lower in Shanghai came as insurers dropped after a 7.0 magnitude earthquake in Sichuan province, which killed close to 200 people and injured thousands, while some construction-related stocks advanced on hopes for reconstruction activity in the affected region.
Some economists said that, despite the scale of the latest tragedy, the economic impact was likely to be lower than the May 2008 earthquake in Wenchuan, which caused much more devastation.
Assuming that the rebuilding budget for the earthquake eventually amounts to around 10 billion yuan ($1.52 billion U.S.), it will be equal to 0.4% of the gross domestic product of Sichuan province, and 0.02% of China’s GDP in 2012.
Shares of China Life Insurance Co. dropped 2.6%, and Ping An Insurance Group Co. lost 2.2%.
Those losses helped offset a 0.2% gain for Baoshan Iron & Steel Co., while Maanshan Iron & Steel Co. added 0.5%.
In other markets;
In Korea, the Kospi Index gained 19.56 points, or 1%, to 1,926.31
In Taiwan, the Taiex Index progressed 39.58 points, or 0.5%, to 7,970.38
The Singapore Straits Times Index advanced 14.87 points, or 0.5%, to 3,308.92
In New Zealand, the NZX 50 gained 39.16 points, or 0.9%, to 4,483.66
Australia’s ASX 200 put on 34.64 points, or 0.7%, to 4,966.55
