Most Asian markets ended higher Tuesday as banks rallied on hopes that conditions aren't worsening in the sector and that governments will take further action to deal with toxic debt.
Japan's Nikkei 225 Average rose for a third straight session, by 244.98 points, or 3.2%, to end at 7949.13, its highest level in more than a month.
Hong Kong's Hang Seng Index slid 98.62, or 0.8% to snap out of a five-session rally, ending up at 12,878.09. with investors locking in profits in late afternoon trading.
The rally in regional financial shares gathered pace following reports that Standard Chartered Bank, which has a strong emerging-markets presence, didn't plan any layoffs or restructuring and reiterated its strong capital position.
The advance in financials also came after the Group of 20 nations outlined guidelines on removing toxic assets from banks' balance sheets.
Shares of Mitsubishi UFJ Financial Group soared 8.2% and Sumitomo Mitsui Financial Group rallied 7.6% in Tokyo, leading market gains.
HSBC stock advanced 2.9%, taking gains to a sixth straight session in spite of the market decline in Hong Kong. In Seoul, KB Financial added 6.8%, National Australia Bank gained 3.2% in Sydney and Cathay Financial Holding rose 2.8% in Taipei.
In Singapore, however, banks and property developers were leading a decline among blue chips as traders said investors were wary of whether the recent gains could be sustained. DBS Group Holdings tumbled 4.1% and CapitaLand fell 2.3% in the afternoon.
Mining stocks climbed in Sydney as base-metals prices ended strongly in London. Rio Tinto was up 2.5% in the buoyant market, in spite of warning that the declining demand for commodities could hurt its financial results.
Among other miners, BHP Billiton was up 2.9% and Lihir Gold added 2.4% in Sydney, while Sino Gold Mining gained 1.9% in Hong Kong.
New Zealand shares reversed early losses in quiet trade.
CHINA
China shares were led higher by building-materials and metals producers, with Aluminum Corp. of China rising 5%.
Meantime, activity was quiet in the currency market as the Bank of Japan began its two-day policy meeting, while the U.S. Federal Reserve's Federal Open Market Committee was to start its two-day meeting later Tuesday. Neither central bank was expected to move on interest rates.
Royal Bank of Scotland analysts said the Bank of Japan's focus "will likely be on more [Japanese government bonds] buying from the secondary market. Indeed, this may be required to prevent JGB yields from rising in the face of relentless supply."
Elsewhere:
China’s Shanghai Composite Index pumped itself 80.79 points, or 3%, higher to close at 2,322.90
Singapore’s Straits Times Index eased off 27.29, or 1.7%, to 1,559.03
South Korea’s Kospi Composite Index picked up 38.42 points, or 3.4%, to 1,163.88
Taiwan’s Taiex Index strengthened 70.07 points, or 1.4% to 5,041.39.
New Zealand’s NZX Index advanced 20.39 points, or 0.8% to 2,564.72
Australia’s S&P/ASX Index surged 103.50 points, or 3.1% to 3,451.90
