Hong Kong stocks—led by the shares of mutual-fund providers—played catchup with their rallying mainland counterparts, while in Japan the yen fell to its weakest point in nearly eight years.
In Tokyo, the Nikkei 225 index took on 23.71 points, or 0.1%, to 20,437.48, to fresh 15-year highs, though some analysts expressed doubts about its sustainability.
In Japan, the U.S. dollar traded as high as 122.67 yen, a level not seen since July 2007, after Friday’s U.S. inflation data surprised to the upside and Federal Reserve Chairwoman Janet Yellen remarked that a rate increase during 2015 still seems appropriate.
All Asian currencies were down against the dollar; the Korean won slid to its weakest level in more than a month
In Hong Kong, the Hang Seng Index returned from a long weekend to gain 257.03, or 0.9%, to 28.249.86
The market had stalled over the past month, held back by a flow of weak economic data from China. But Hong Kong enjoyed a fresh bound of buying Tuesday on expectations that liquidity in China will get a boost from a deal allowing mainland and Hong Kong mutual funds to sell products to retail investors on both sides of the border, as well as from news of increased infrastructure spending by Beijing.
In combination with cross-border programs already in place, the new link—which will open in July—will increase the total capacity for flows from China to Hong Kong to $180 billion U.S., according to the firm. That would represent more than 6% of Hong Kong’s free-float market capitalization.
Hong Kong-listed mutual-fund providers, including brokerages and insurers, rallied on expectations that the cross-border mutual-fund scheme will increase their incomes. China Everbright Ltd. was up 7.8% and Haitong Securities Co. Ltd. was up 5.4%.
One of the biggest gainers was also the stock-exchange operator, Hong Kong Exchanges & Clearing Ltd. whose shares rose 5.4%, bringing its 2015 gain to more than 80%.
In Hong Kong, Goldin Properties Holdings Ltd. and Goldin Financial Holdings Ltd. rebounded by 43% and 8% respectively. Both stocks had plunged more than 40% last Thursday amid worries about Hong Kong highfliers—notably solar-panel maker Hanergy Thin Film Power Group whose share price fell by about half Wednesday after having tripled this year.
Australian markets were up to a three-week high.
Fortescue Metals Group rallied almost 11% for the day following a newspaper report that China-linked companies want to invest in the iron-ore miner.
In other markets
The Shanghai CSI 300 rose 99.16 points, or 1.9%, to 5,199
In Korea, the Kospi index fell 2.60 points, returning from a holiday, to close Tuesday at 2,143.50
In Taiwan, the Taiex added 24.24 points, or 0.3%, to 9,669.41
In Singapore, the Straits Times index faded 0.87 points to 3,459.98
In New Zealand, the NZX 50 inched up 0.87 points to 5,795.86
In Australia, the S&P/ASX 200 tacked on 51.91 points, or 0.9%, to 5,773.38
