Asian markets shot higher Wednesday, as expectations of interest-rate cuts and economic-stimulus measures forced bearish investors to reverse bets that the downtrend in stocks will continue.
The benchmark Nikkei 225 Stock Average gained 264.4 points, or 3.2%, to close at 8,660.2 while the benchmark Hang Seng Index jumped 824.5 points or 5.6% to close at 15,577.7.
Investors also shrugged off downbeat economic and corporate news in Japan. Data released by the Cabinet Office showed that Japan's core private-sector machinery orders fell 4.4% on month in October compared to forecasts that had called for a 4.0% increase after September's 5.5% gain. The Bank of Japan said that Japan's corporate goods price index rose 5.0% on year in November, sharply higher than analysts' expectation for an annual increase of 2.8% following the 4.8% on year expansion in October. Meanwhile, the Conference Board reported that leading index for Japan fell 2.5%, the largest monthly decline in 33 years, and coincident index, which measures current economic conditions, decreased 0.5% in October. In corporate news, Sony announced Tuesday that it will slash about 16,000 jobs around the world by March 2010.
Automakers surged following the U.S. auto sector bailout news, with Honda Motor surging up 10.3% and Toyota Motor jumping 6.6% despite Goldman Sachs lowering its operating profit forecast on the company for the year to March 2009. Shippers rose on higher Baltic Dry Index. Mitsui OSK Lines soared 10.4% and Nippon Yusen KK gained 6.5%.
Tokyo Electron surged 11.0% and Advantest climbed 8.9% after the Philadelphia Stock Exchange Semiconductor Index rose nearly 5% on Tuesday.
Among export-oriented stocks, Canon added 3.6%, Komatsu advanced 6.3%, Nikon rose 10.6%, and Sony closed up 1.1% after plunging about 3% in early trade.
In the banking space, Mitsubishi UFJ Financial Group added 2.2%, Mizuho Financial Group gained 5.6%, and Sumitomo Mitsui Financial Group climbed 5.3%.
Among commodity-related stocks, Inpex Holdings jumped 4.4%, Nippon Mining Holdings surged up 6.4%, Mitsubishi Corp gained 2.6% and Mitsui & Co climbed 5.0%.
CHINA
The Chinese stock market closed higher, as weaker-than-expected November factory gate price data fanned hopes that Beijing would introduce new measures to boost the economy. Sharp gains among markets in the Asia-Pacific region also added to the positive sentiment. The benchmark Shanghai Composite Index, which covers A and B shares, closed up 41.4 points or 2.0% at 2,079.1. The Shenzhen Composite Index rose 2.3% to 624.3.
On the economic front, producer price index for November rose 2.0% from a year earlier, much lower than October's 6.6% increase, raising hopes for further interest rate cuts.
Meanwhile, the Ministry of Commerce said that actual foreign direct investment in China rose 26.3% year-over-year to US$86.4 billion in the first eleven months this year, slower than the 35.1% growth recorded in the January-October period this year.
Banks led the gainers. Shanghai Pudong Development Bank jumped 9.1% and Industrial & Commercial Bank of China gained 2.8%. Airlines also rose after China's aviation regulator said Tuesday that the government would reduce the fees and taxes that companies in the sector have to pay. Air China climbed 4.2% and Shanghai Airlines advanced 4.1%.
Market heavyweight PetroChina slipped 0.2%, but oil refiner Sinopec edged up 0.1%.
Elsewhere in the financial sector, China Life Insurance gained 3.8% and Ping An Insurance surged 4.3%.
In the property sector, China Vanke rose 2.10%, Gemdale added 1.5%, COFCO Property climbed 2.0%, and Poly Real Estate Group advanced 1.3%.
Elsewhere:
The benchmark NZX 50 Index closed down 13.2 points, or 0.5%, at 2,711.6.
Taiwan's Taiex closed up 4.2% at 4,658; Singapore's STI closed up 3.8% at 1,821.
Indonesia's Jakarta Composite Index closed up 3.9% at 1,315.
Malaysia's KLCI closed down 19.5 points at 854.
Australia's S&P/ASX 200 climbed 1% to 3,640.70.
South Korea's Kospi added 3.6% to 1,145.87.
with files from other wire services
