Most Asian markets sprang from sharp intraday losses to end higher Friday, with trader speculation that China may cut interest rates further and that the U.S. may announce stops auto industry over the weekend contributing to the bounce.
The benchmark Nikkei 225 Stock Average closed up 207.8 points or 2.7% at 7,910.8 while Hong Kong's Hang Seng index closed up 2.9% at 12,659.
The Bank of Japan's Board of Governors on Friday voted to keep the overnight call rate unchanged at 0.30%, the central bank said at the conclusion of its two-day monetary policy meeting in Tokyo. In a statement accompanying the rate decision, the board maintained its view that the Japanese economy is increasingly sluggish and is expected to remain that way for several quarters. In its previous meeting on October 31, the bank had lowered rates by 20 basis points from 0.50%.
Some major bank stocks posted sharp gains. Mizuho Financial Group jumped 13.9%, Sumitomo Mitsui Financial Group gained 8.3%, and Mitsubishi UFJ Financial Group rose 2.5%.
A stronger dollar lifted Japanese auto and high-tech exporters. Toyota Motor added 4.6%, Sony surged 5.6%, Canon climbed 3.3%, Kyocera gained 4.7%, and industrial robot maker Fanuc soared 13.4%.
Phone Company NTT Corp. rose 5.2% after it said Thursday that it intends a 100-for-1-share split in January 2009 to eliminate fractional shares before the introduction of electronic stock certificates next year. The company noted that stock exchanges in Japan would halt trading in its shares from December 25 to 30.
CHINA
The Chinese stock market ended a volatile session lower amid speculation about an interest rate cut during the weekend and suspected government buying of shares. The benchmark Shanghai Composite Index fell 0.7% or 14.4 points to 1,969.4. For the week, the key index has lost 0.9%. The market started off weak, dipping 4.5% by the midday break after Wall Street plunged overnight, but recouped most of the losses over the course of the trading session.
Property developers rose, with Poly Real Estate jumping 6.5% and China Vanke advancing 4.4%. But airlines fell as oil prices rebounded above $50 in Asian trading. China Eastern Airlines plunged 6.6% and China Southern Airlines shed 4.7%.
Market heavyweight PetroChina slipped 0.5%, while oil refiner Sinopec closed unchanged.
Elsewhere
Taiwan's Taiex closed up 2.0% at 4,171.
Singapore's STI closed up 3.0% at 1,662.
Indonesia's Jakarta Composite Index closed down 0.8% at 1,146.
Malaysia's KLCI closed up 1.6 points at 866.
India's Sensex closed up 5.5% at 8,915.
Australia's S&P/ASX 200 rose 1.9% to 3,416.50.
New Zealand's NZX 50 index gave up 2.5% to 2,578.10.
with files from other wire services
