Japanese stocks soared Tuesday, rebounding from last week's multi-year lows, with the benchmark Nikkei 225 Average climbing a record 14.2% on a broad-based rally after U.S. indexes posted a double-digit surge overnight.
The benchmark Nikkei index closed up 1,171.14 points, or 14.15%, at 9,447.57, recording its largest percentage gain since October 2, 1990 while the benchmark Hang Seng Index finished up 520.72 points or 3.2% at 17,832.88.
On the economic front, the Bank of Japan reported that the domestic Corporate Goods Price Index increased 6.8% on year in September compared to on-year increases in August and July. The July increase of 7.3% was the highest in 27 years. In September, CPGI decreased 0.4% from the previous month.
Meanwhile, Japan's consumer confidence increased to 31.4 in September from a record low of 30.1 in August, according to the results of the latest survey by the Cabinet Office. Economists had expected the reading to come in at 29.9. The September reading matched July's level. In September, consumer confidence picked up after falling for the last five months.
Nippon Steel soared 24.2% and JFE Holdings jumped 18.9%. Japan Airlines advanced 19.3%, while Mitsui Fudosan advanced 19.1% and Sumitomo Realty added 16.9%.
In the banking sector, Mitsubishi UFJ Financial Group, which remained bid-only most of the day, surged 14.1% as investors scrambled for the stock after the bank held firm to close out its purchase of 21% of Morgan Stanley for $9 billion. The move catapulted Morgan Stanley shares 87% higher in New York after many had speculated the deal could be in doubt as a result of recent market turmoil.
Mizuho Financial Group jumped 15.2%, remaining bid-only during the entire session, and Sumitomo Mitsui Financial Group surged 16.9%. Top brokerage Nomura Holdings shot up 16.3%.
Among exporters, Toyota Motor surged 15.5%, Sony soared 16.8%, Honda Motor gained 17.8%, and Canon climbed 16.1% after the U.S. dollar rallied against the yen.
Oil & gas miner Inpex Holdings rose 13.6% and Nippon Oil gained 17.2% as crude oil prices continued to rise Tuesday on hopes of a rise in demand for energy.
CHINA
The Chinese stock market closed lower, led by banks, after it ended a six-day losing streak on Monday. Banks were hit as worries about the global financial crisis re-emerged in late trade. The market started off firm, but lost ground following a late day sell-off. The benchmark Shanghai Composite Index closed down 56.25 points or 2.71% at 2,017.32, reversing part of Monday's 3.65% gains.
Shanghai Pudong Development Bank fell 1.5% despite the bank projecting a 150% increase in net profit in the nine months to September. Bank of Nanjing plunged 5.6% though the lender forecast a net profit growth of over 85% in the first nine months on year-over-year basis. China Construction Bank shed 1.6% and the Industrial and Commercial Bank of China gave away 3.3%.
Steel makers fell after media reports showed that that China's domestic steel prices fell an average of 12% between October 6 and 10. Baoshan Iron & Steel lost 3.7%, Maanshan Iron & Steel dropped 4.4%, and Angang Steel declined 1.4%.
Among brokerages, CITIC Securities and Haitong Securities both fell by 10%, while Guoyuan Securities gave away 9.9% after the company announced in a preliminary earnings statement that its net profit dropped 76.24% on year-over-year basis in the first nine months.
China Petroleum & Chemical Corp slid 1.6% and index heavyweight PetroChina fell 1.7%.
Bucking the trend, China Vanke rose 1.9% and China Merchants Property Development advanced 2.5%.
Elsewhere:
Taiwan's Taiex closed up 5.4% at 5,291.
Malaysia's KLCI closed up 1.6% at 966.
Singapore's STI closed up 2.5% at 2,128.
Indonesia's Jakarta Composite Index closed up 6.4% at 1,555.
India's Sensex finished up 1.5% at 11,483.
South Korea's Kospi added 6.1% to 1,367.69.
New Zealand's NZX 50 index rose 6% to 2,948.97.
Australia's S&P/ASX 200 gained 3.7% to 4,335.20.
with files from other wire services
