Chinese stocks jumped Wednesday, with strong gains in Hong Kong and Shanghai, while the rest of Asia moved higher ahead of the conclusion of the U.S. Federal Reserve’s policy meeting
The Nikkei 225 index in Japan recovered 176.37 points, or 1.2%, to 14,502.35
The yen stabilized early in Asia after the dollar gained 0.5% against its Japanese counterpart overnight, recently at ¥98.26 to the dollar.
In Hong Kong, China Petroleum & Chemical Corp. posted a 20% rise in its third-quarter net profit from a year earlier, helping to lift the company’s stock by 2.8%. PetroChina Co., rose 1% after reporting a 19% increase in net profit over the same period.
Softbank rose 2% in Tokyo following a Nikkei report that said the telecoms company’s group operating profit for the first half of the fiscal year likely rose 70% on-year to more than ¥700 billion ($7.13 billion U.S).
Securities firms were in focus in Tokyo after Nomura Holdings and Daiwa Securities Group reported second-quarter earnings. Daiwa rose 3.8% after reporting its net profit slid 38% on the previous quarter on decreased equity trading, which was above consensus expectations. Analysts say it already is factored into the price.
Nomura added 1.4%, underperforming the broader market after reporting a steep decline in net profit significantly lower than in the previous quarter, although in line with market expectations.
Also in Japan, Fanuc Corp. dropped 2.4% after the industrial robotics company announced a decline in sales and a lower-than-expected guidance for the full-year. Tokyo Electron added 1.1% after the firm announced a sharp rise in orders for the second quarter that ended in September.
Hong Kong’s Hang Seng Index vaulted 457.48 points, or 2%, to 23,304.02
Chinese banks, which account for a large part of the index, rose ahead of their quarterly earnings reports to be released after the market closes. Agricultural Bank of China rose 2.8% in Hong Kong and Industrial and Commercial Bank of China climbed 2.4%.
CHINA
A number of factors conspired to create the sharp movement higher in China
Shanghai’s CSI 300 moved higher 35.42 points, or 1.5%, to 2,407.47
In Shanghai, power companies helped the market, rising due to robust earnings in the sector. GD Power Development Co. rose 5.2% and SDIC Power Holdings Co. added 9.7%.
In other markets;
Korea’s Kospi Index added 7.82 points, or 0.4%, to 2,059.58
Taiwan’s Taiex Index improved 44.08 points, or 0.5%, to 8,465.06
The Singapore Straits Times Index gained 21.62 points, or 0.7%, to 3,230.44
In New Zealand, the NZX 50 restored 15.49 points, or 0.3%, to 4,868.08
In Australia, the S&P/ASX 200 regained 15.33 points, or 0.3%, to 5,430.86
