Asian markets rallied Monday, with several regional indexes jumping more than 3%, as investors translated signs of improvement in the region's economies into share purchases across most sectors.
Hong Kong and Shanghai shares posted hefty gains after data showed Chinese manufacturing activity improving, while Taiwanese stocks shot further up on hopes of corporate and portfolio investments from mainland China.
In Hong Kong, the Hang Seng Index flew 860.06 points, or 5.5%, higher, to close at 16,381.05, reclaiming the 16,000-point level for the first time since mid-October. One expert said the clean break above the psychologically-important level suggested stop-loss orders were triggered as short-sellers rushed to buy shares and cut losses.
Markets in Japan were closed for a holiday.
Taiwan's Taiex Index, which surged 6.7% on Thursday, gained a further 5.6% as trading resumed after Friday's holiday.
In Taipei, several shares rose by a percentage nearing the daily upper limit of 7%, with Far EasTone Telecommunications adding 5.3% on continued buying after China Mobile last week said it would buy a 12% stake in the company.
Australian mining stocks were higher, with BHP Billiton up 2.5% and Rio Tinto up 4.9%, after London Metal Exchange three-month copper futures and other base-metal prices rose Friday.
Macquarie Group fell sharply in early trading after saying Friday that its full-year profit was half what it was the previous year, and raising A$540 million ($400 million U.S.) in a private placement of stock. But the stock ended up 1.6% in the buoyant market.
Alumina tumbled 11% as its shares resumed trading following a capital raising.
Regional steel stocks gained following news that China aims to eliminate 25 million tons of steel capacity by the end of 2011. The move is expected to increase the competitiveness of local steel mills and accelerate consolidation in the industry.
KB Financial helped the banking sector in South Korea, surging 15% after reporting larger-than-expected first-quarter net income.
Shinhan Financial Group ended up 7.3%, paring some early gains, after reporting a lower-than-expected first-quarter profit on a fall in interest income and more bad loans.
Currency markets were quiet due to the holiday in Tokyo. The U.S. dollar was near 99.51 yen, against 99.28 yen late in New York, and the euro was at 132.38 yen, compared with 132.72 yen. The single currency was stronger against the dollar, at $1.3306 compared with $1.3261.
Markets in Japan were closed for a holiday.
CHINA
China's Shanghai Composite gained, after the CLSA China Manufacturing purchasing-managers index rose to 50.1 in April from 44.8 in March, marking its first increase in nine months. A reading above 50 indicates an improvement in conditions.
Leading the gains, market heavyweight China Mobile soared 7.7%, Aluminum Corp. of China jumped 9.8% and Cathay Pacific Airways gained 10.9% in Hong Kong.
In Shanghai, Jiangxi Copper added 6.1% and Baoshan Iron & Steel advanced 4.5%, while China Shenhua Energy Co. added 7.9%.
Elsewhere:
China’s Shanghai 300 Composite Index gained 91.38 points, or 3.5%, to 2,714.30
Singapore’s Straits Times Index climbed 108.43 points, or 5.7% to 2,028.71
South Korea’s Kospi Composite Index picked up 28.56 points, or 2.1% to 1,397.52
Taiwan’s Taiex index galloped ahead 337.83 points, or 5.6% to 6,330.40
New Zealand’s NZX 50 Index advanced 46.36 points, or 1.7%, to end the day at 2,766.27.
Australia’s S&P/ASX 200 picked up 113.40 points, or 3% to 3,883
