Banking and financial shares rose Monday as investors bought up bargains in the battered sector on a continued rally in their U.S. counterparts, pushing Asian markets higher after a strong advance last week.
Japan's Nikkei 225 finished 134 points, or 1.8% higher, to 7,704.15 and Hong Kong's Hang Seng Index surged 450.91 points, or 3.6% to 12,976.71.
Financials led the charge again, offsetting declines in energy-related shares after the Organization of Petroleum Exporting Countries decided over the weekend to keep production quotas unchanged.
In Tokyo, Mitsubishi UFJ Financial Group jumped 5.3% and Mizuho Financial Group rose 5.6%. Shinsei Bank soared 17.3%, helped by a Nikkei report that the Bank of Japan was considering purchasing subordinated debt issued by banks.
Commonwealth Bank of Australia rose 2.5% to outperform the broad market in Sydney, while KB Financial Group did the same in Seoul, gaining 2.9%.
HSBC Holdings extended recent gains, jumping 4.6% in Hong Kong. The advance came after the South China Morning Post quoted the bank's chief financial officer, Douglas Flint, as saying the bank was unlikely to go to shareholders for more cash after its $17.7 billion U.S. rights issue recently. Flint also said the bank didn't need a U.K. government bailout.
BHP Billiton lost 2.1% and Woodside Petroleum slumped 4.6% in Sydney, while Inpex Corp. gave up 4.6% in Tokyo.
In Japan, Pioneer shares jumped 12.8%, even after the company said it wasn't in talks with Mitsubishi Electric. A weekend Yomiuri Shimbun report said the two had begun talks on a tie-up in car navigation and other auto-device operations.
Auto stocks were higher in South Korea after the manufacturers posted better sales figures in Europe than their global peers. Hyundai Motor added 3.3% and Kia Motors gained 1.8%.
Currency markets were choppy with the euro erasing early losses. The currency was recently at $1.2963, after falling to $1.2833, compared with $1.2920 late in New York on Friday. Against the Japanese currency, it changed hands for 127.24 yen from 125.54 yen earlier in Asia.
The U.S. dollar was around 98.14 yen, having fallen initially to 97.57 yen.
CHINA
In the mining sector, Rio Tinto shares fell 2.4% after Australia extended a review of Aluminum Corp. of China, or Chinalco's, proposed $19.5 billion U.S. investment in the miner. Also, an institutional investor - Australian Foundation Investment Co. - criticized the deal, saying it would give Chinalco significant influence without a premium being paid.
In Shanghai, Bank of Communications Co. rose 3.1% and Poly Real Estate Group advanced 3.7%.
Elsewhere:
In China, Shanghai’s 300 Composite Index gained 36.19 points, or 1.6% at 2,241.61.
Singapore’s Straits Times Index advanced 8.80 or 0.6%, to 1,586.32
Taiwan’s Taiex picked up 73.93 points, or 1.5% at 4,971.32
South Korea’s Kospi was fairly flat, to 1,125.46
New Zealand’s NZX 50 gained 20.94, or 0.8% to close at 2,544.33
Australia’s S&P/ASX 200 gained 3.2 or 0.1% to end at 3,348.40
