Asian stocks surged, giving the regional benchmark index its biggest gain in six weeks, after Citigroup Inc. and HSBC Holdings Plc said earnings are improving, and China’s factory and property spending jumped.
Japan's Nikkei 225 Average gained back 321.14 points, or 4.6%, to close Wednesday at 7,376.12.
In Hong Kong, the benchmark Hang Seng Index surged 236.61 points, or 2.0%, to 11,930.66
HSBC, Europe’s biggest bank, climbed 2.3% in Hong Kong after an official said there was “very strong” interest in its rights offer and profit in China jumped. Australia & New Zealand Banking Group Ltd. added 3.2% after Citigroup Inc. said it was headed for its best quarter since 2007.
Mizuho Financial Group Inc., the Japanese lender with the biggest subprime-related writedowns, rose 5.4% in Tokyo. Mitsubishi UFJ Financial Group Ltd., Japan’s biggest bank, climbed 4.1%.
In Sydney, Commonwealth Bank of Australia gained 3%. Tokio Marine Holdings Inc., Japan’s biggest casualty insurer, surged 7.4%.
The cost of protecting investors in Asia-Pacific bonds from default fell from records, according to traders of credit default swaps, indicating investor perception of credit quality is improving. Meanwhile, New Zealand home sales rose to a 12-month high in February, adding to signs that low interest rates and falling prices are helping the property market recover.
Governments have stepped up efforts to avert what the World Bank predicts will be the first global economic contraction since World War II. The Yomiuri newspaper said today Japan’s government may propose a new economic plan as early as this month.
BHP Billiton Ltd. rose 4.2% while smaller rival Rio Tinto Ltd. added 3.1% after metals prices rallied. Nippon Mining Holdings Inc., Japan’s biggest copper producer, climbed 4.8%
Toshiba rose 9.5%. The chipmaker will probably have operating profit of about 100 billion yen ($1 billion U.S.) in the year to March 2010, enabling it to break even, the Nikkei newspaper said today, without saying where it got the information.
Chartered Semiconductor slumped 8% to a record low in Singapore. The company said on March 9 it will sell shares to existing shareholders at a 66% discount, raising $300 million U.S. that will help shore up its balance sheet.
CHINA
China’s Shanghai Composite Index fell 20.40, or 0.9%, to 2,220.38, as a record drop in exports overshadowed a bigger-than-estimated increase in the nation’s factory and property investments.
Copper futures jumped 2.7% in New York yesterday on speculation China increased imports of the metal. Chinese Premier Wen Jiabao reiterated last week the government’s pledge to “significantly increase” investment in 2009.
China’s spending on factories and property surged 26.5% in the first two months of the year, the statistics bureau said today, exceeding analyst estimates. Anhui Conch Cement Co. Ltd., China’s biggest cement producer, rose 1.5% in Hong Kong.
A rally in Chinese stocks fizzled after data released by the customs bureau during the lunch-time break showed exports tumbled by a record 25.7% from a year earlier, while imports fell 24.1%.
Elsewhere:
Singapore’s Straits Times Index was ahead 19.76, or 1.3%, to 1,505.51
Taiwan’s Taiex gained 88.94 points, or 1.9% to 4,759.96
South Korea’s Kospi added 35.31 points or 3.2% to 1,127.51
New Zealand’s NZX 50 Index surged 34.80 or 1.4% to 2,497.51
Australia’s S&P/ASX 200 Index picked up 59.90 points, or 1.9% to 3,244.44
