Japanese stocks rebounded Tuesday to take back some of the steep losses they suffered the previous day as banks and several beaten-down shares rallied in the wake of overnight gains on Wall Street.
Other Asian markets ended mixed, after enduring wide swings between gains and losses as strong cues from U.S. stocks were countered by concerns over China’s growth trajectory.
The Nikkei 225 regained 271.94 points, or 2.1%, to 13,533.76
In Hong Kong, the Hang Seng Index picked up 3.33 points to 22,285.52
Japanese bond, stock and currency markets have seen extreme volatility of late amid an increase in the yields on domestic government debt and worries the Fed may pare its asset purchases.
Tuesday’s rebound pares the steep losses suffered in Tokyo since May 23, when the Nikkei plunged 7.3%, after posting hefty gains in a rally that started late last year.
Banks rallied after the higher U.S. finish, with Mitsubishi UFJ Financial Group Inc. soared 7.5%, and Sumitomo Mitsui Financial Group Inc. spiked 9%.
Stocks in several other sectors rallied as well to take back some recent losses, with Japan Tobacco Inc. rising 3.4%, real estate developer Mitsui Fudosan Co. climbing 6.4%, mobile service provider Softbank Corp. adding 4.1% and steel maker Nippon Steel & Sumitomo Metal Corp. climbing 4.8%.
Shares of Tokyo Electric Power Co. added 2.5% as a report in the Nikkei newspaper said the power utility and 10 other local firms were considering importing coal together in a move that could slash their transport costs.
Among other companies named as part of the plan, Nippon Paper Industries Co. rose 3.4%, but Tohoku Electric Power Co. gained 0.8%.
South Korea’s Kospi also ended flat, while Australia’s S&P/ASX 200 added 0.3% after the Reserve Bank of Australia left its policy interest rates unchanged but left the door open to further cuts in future.
Most regional stock benchmarks changed direction at least once after stocks on Wall Street advanced overnight, as weak U.S. manufacturing data reinforced some expectations that the Federal Reserve will maintain its bond purchases — a key tailwind for global equities over the past several quarters.
In Sydney, some financial sector stocks ended with modest gains after the RBA decision. Commonwealth Bank of Australia climbed 0.3% and Australia & New Zealand Banking Group Ltd. rose 0.2%.
China Resources Land Ltd. dropped 0.4% in Hong Kong.
CHINA
In Shanghai, the CSI 300 Index dropped 36.95 points, or 1.4%, to 2,565.67, as analysts considered the outlook after the May surveys on Chinese manufacturing by the government and HSBC offered a different view on factory-level activity.
Some Chinese property developers pulled back after recent gains, weighing on the broader market.
Shares of China Overseas Land & Investment Ltd. fell 0.9%
Gemdale Corp. lost 2.7% in Shanghai, and Oceanwide Real Estate Group Co. dropped 0.5% in Shenzhen.
In other markets;
Singapore’s Straits Times Index inched up 0.27 points to 3,291.35
In Korea, the Kospi Index dipped 0.06 points to 1,989.51
Taiwan’s Taiex Index erased 9.80 points, or 0.1%, to 8,191.22
In New Zealand, the Exchange 50 Gross Index returned from holiday to shave off 37.57 points, or 0.8%, to 4,473.78
Australia’s S&P/ASX restored 12.50 points, or 0.3%, to 4,900.81
