Strengthening exporter shares fueled a rally in Asian stocks Monday, as Japanese markets advanced on a declining yen that boosted such export-oriented companies as Toyota, Honda and Komatsu, after a media report that the Bank of Japan will hold steady on interest rates this week.
Japan's Nikkei 225 Average rose 110.17 points, or 0.67 percent, to finish at 16,527.99 while Hong Kong's Hang Seng Index rose 184.67 points to 18,924.66.
Japanese shares got their lift from carmakers and other exporters' stocks, which rose amid a yen decline against the dollar that reversed recent appreciation.
Steelmakers were also among the winners in Japan amid continued hopes for reorganization in the sector.
Nippon Steel Corp. surged 4.01 percent and Nintendo Co. advanced 3.59 percent.
Japan's other gainers included Toyota Motor Corp., which rose 1.42 percent. Nissan Motor Co. edged up 0.56 percent after it said it will launch a fuel cell vehicle in the early 2010s in Japan and North America as part of its midterm environmental strategy.
Elsewhere:
JAKARTA: Indonesia shares dropped 0.9 percent to 1,759.67 points, led by profit taking in heavyweight Telkom.
KUALA LUMPUR: Malaysian shares edged up 0.3 percent to 1,101.70 points in heavy trading.
MANILA: Philippine shares advanced for the second straight session, lifted by gains in Manila Electric Co. and related stocks. The benchmark 30-company Philippine Stock Exchange Index rose 10.37 points, or 0.36 percent, to 2,841.77, adding to Friday's 1.3 percent gain.
SEOUL: South Korean inched up in light trading despite gains in banks and steel maker Posco amid expectation of a hefty program selling. The Korea Composite Stock Price Index, or Kospi, added 0.3 point, or 0.02 percent, to close at 1,390.73, following five consecutive sessions of declines last week.
SHANGHAI/SHENZHEN: Chinese shares were propelled to their biggest rise in a single session in seven months by bargain hunting in the financial sector. The benchmark Shanghai Composite Index surged 4.2 percent to 2,180.50 points -- the index's biggest single-session rise in percentage terms since May 12, when it jumped 4.3 percent. The Shenzhen Composite Index rose 3.7 percent to 507.55.
SINGAPORE: Singapore shares were lifted by Wall Street's gains last week and the meteoric rise of Genting International, which was awarded the rights to build a casino in the city-state. The STI gained 22.09 points, or 0.77 percent, to finish at 2,887.23.
TAIPEI: Taiwan shares dropped moderately following the split victories by the island's main rival political parties at weekend mayoral elections. The Weighted Price Index of the Taiwan Stock Exchange fell 24.18 points, or 0.3 percent, to close at 7,612.12.
WELLINGTON: New Zealand shares were pulled back from record highs by late selling, despite gains by Telecom. The NZSX-50 benchmark index dipped 1.37 points to 3,887.36 in light trading.
SYDNEY: Australian shares advanced as traders bought several major banking stocks ahead of their annual meetings later this week. The benchmark S&P/ASX 200 index climbed 43.9 points, or 0.8 percent, to 5,469.7, with broad support helping all sectors to finish stronger.
With files from wire services
