Asian markets advanced Thursday, with Chinese banks led by Industrial & Commercial Bank of China pacing the advance in Hong Kong and Shanghai a day after the lender reported strong earnings.
Regional chip-makers' shares also rose, reflecting hopes of a recovery for the sector, with Elpida Memory shares surging a day after it announced a capital-raising plan by subsidiaries.
Japan's Nikkei 225 Average regained 156.34 points, or 1.8% at 8,636.33
In Hong Kong, the Hang Seng Index rebounded 486.87, or 3.6%, to 14,108.98, ending above the 14,000-point level for the first time in two and a half months.
Shares of ICBC shot up 14.8% in Hong Kong, with the stock also benefiting from news that Goldman Sachs has agreed not to sell 80% of its investment in the Chinese lender until April 2010.
However, the U.S. investment bank is free to sell a fifth of its 4.9% stake in ICBC after a lock-up period ends next month.
Other Chinese lenders also rose in Hong Kong, with Bank of China gaining 7.9% and China Merchants Bank climbing 9.2%.
Chip makers rose sharply in Tokyo, Seoul and Taiwan. Sentiment toward those stocks improved after company executives at Hynix Semiconductor and Powerchip Semiconductor said they expect a recovery in the sector, which has been plagued by overcapacity and weak prices for several months.
Powerchip and Nanya Technology Corp. jumped 6.9% each, and Inotera Memories gained 6.8% in Taipei, while Hynix surged 14.7% in Seoul. Elpida rocketed 18% in Tokyo on its subsidiaries' plan to raise around $470 million U.S. by issuing preference shares to Elpida and its business partners. The move is expected to help Elpida raise money without selling its own stock and diluting equity.
But some analysts kept a cautionary stance, with Deutsche Bank analysts saying that despite recent cutbacks in production, "a full-scale recovery still hinges on further rationalization of capacity."
One analyst said Asia has been pre-empting the U.S. market of late.
Other shares in Hong Kong did well after posting earnings, with China Life Insurance Co. rising 4.3% although it reported a 45% drop in 2008 net income Wednesday. Shares of diversified conglomerate Hutchison Whampoa ended up 3.3% after the company reported better-than-expected 2008 earnings. The company's profit fell 42%.
Shares of original drug makers were lower in Tokyo after Nikkei reported that the health ministry plans to double the ratio of generic drugs to 30% at nationally-run hospitals by the fiscal year starting April 2013. Takeda Pharmaceutical fell 1.1% and Eisai Co. slipped 0.7%.
Korean Air Co. ended up 1% as the Korean won continued to gain. The U.S. dollar was recently at 1,330 South Korean won, from 1,356 won a day earlier.
In currencies, the U.S. dollar rebounded against the Japanese yen after dropping in New York trading amid confusion over comments by U.S. Treasury Secretary Timothy Geithner.
Geithner initially appeared willing to entertain a Chinese proposal that an international currency supplant the U.S. dollar as the key global reserve currency, but later said "the dollar remains the world's dominant reserve currency [and] I think that's likely to continue for a long period of time."
The dollar was recently higher at 97.98 yen, from 97.30 yen late in New York, and the euro up at 133.01 yen, from 132.19 yen. The euro changed hands for $1.3575 U.S., slipping from $1.3587 U.S.
CHINA
China’s Shanghai 300 Composite Index leaped 3.3%, or 78.46 points to 2,479.99
Shanghai-based companies led in China after the government said Wednesday it aimed to turn Shanghai into an international financial center by 2020. Textile and apparel, steel and nonferrous-metals stocks were also on the rise after Beijing said it would raise export tax rebates for some products in those sectors. Shanghai International Port (Group) jumped by the daily limit of 10%.
In Shanghai, ICBC rose 5.8%, Bank of China added 3.5% and China Merchants Bank advanced 6.9%.
Elsewhere:
Singapore’s Straits Times Index picked up 67.11 points or 4%, to 1,758.79
South Korea’s Kospi Composite Index marched ahead 40.18 points, or 1.2%, to 1,243.80
Taiwan’s Taiex Index improved 40.18 points, or 0.8%, to 5,386.56
New Zealand’s NZX Index actually lost ground, giving back 14.07 points, or 0.5% to 2,616.25
Australia's S&P/ASX 200 index gained 37.30 or 1%, to end the day at 3,646.60
