Most Asian markets ended higher amid light volumes and high volatility Monday, with Japanese stocks lifted by hopes of consolidation in the non-life insurance sector, while energy-related shares such as Woodside Petroleum and Cnooc jumped on a rebound in crude-oil prices.
The benchmark Nikkei 225 Index gained 7.65 points, or 0.09%, to close at 8,747.17 while the benchmark Hang Seng Index gained 144.34 points, or 1.02%, to close at 14,328.48.
Insurance companies surged on speculation over a possible merger in the industry. Mitsui Sumitomo Insurance Group Holdings Inc., Aioi Insurance Co. and Nissay Dowa General Insurance Co. are reportedly in talks to create Japan's largest non-life insurer, with a merger likely as early as next autumn. Mitsui Sumitomo rose 8.3%, Aioi Insurance jumped 19.2% and Nissay Dowa General Insurance climbed 14.9%.
In the banking space, Mitsubishi UFJ declined 0.71%, while Mizuho Financial, Resona Holdings and Sumitomo Mitsui Financial remained unchanged. Automaker Toyota gained 1.21%, Honda edged down 0.05% and Mazda remained unchanged.
Among export-oriented stocks, Komatsu eased 0.64%, Nikon shed 3.73%, and Canon lost 0.92%. Sony rose 2.81%. In the tech space, Advantest eased 0.14% and Fanuc gave away 0.65%, while Kyocera added 0.16%. Chipmaker Elpida rose 13% after the company said it has commenced merger talks with Taiwanese semiconductor companies.
Oil stocks gained on higher oil prices. Nippon Oil jumped 6.47%, Inpex Holdings gained 6.41% and Showa Shell advanced 1.18%. Trading house Itochu rose 2.84%, Sojitz added 0.68% and Marubeni gained 0.92%.
NEC Corp. gained 7.51% after the Nikkei newspaper reported that the company and Nissan Motor plan to invest more than 100 billion yen to manufacture large-capacity lithium ion batteries. Nissan advanced 0.96%.
Papermaker Oji slid 2.41% after the Nikkei newspaper reported that the company is likely to post a profit for the nine months to December 31 that will be almost unchanged with the prior year.
Elsewhere:
Australia's S&P/ASX 200 rose 1.1% to 3,621.10 and New Zealand's NZX 50 index edged up 0.4% to 2,677.64.
Singapore's Straits Times Index gained 55 points, or 3.18%, to close at 1,781.
India's BSE 30 Index rose 205 points, or 2.19%, to settle at 9,534.
Taiwan's Weighted Index lost 9 points, or 0.20%, to settle at 4,416.
Australia's S&P/ASX 200 rose 1.1% to 3,621.10.
New Zealand's NZX 50 index edged up 0.4% to 2,677.64
with files from other wire services
