Chinese shares led most Asian markets higher Wednesday with stocks in Shanghai rebounding on strong earnings reports from Air China and China Life Insurance Co.
Shanghai’s 300 Composite Index recovered 62.56 points, or 2%, to 3,172.32.
The Nikkei 225 index in Tokyo gained 142.35 points, or 1.4%, to close at 10,639.71, its highest level all year.
In Hong Kong, the Hang Seng index picked up 21.08 points, or 0.1%, to 20,456.32.
Shares of Air China jumped by their daily limit of 10% in Shanghai a day after it reported that profit for the first half of the year more than doubled on lower costs and fuel-hedging gains.
The performance lifted other airlines as well, with China Southern Airlines Co. rising 8.2%.
Shares of China Life Insurance added 1.1% after also reporting a growth in half-yearly profits Tuesday.
In Hong Kong, Air China climbed 3.6% and China Southern rose 4.7%, while China Life was up 3.2%.
Some analysts said they were cautiously optimistic the uptrend in Chinese stocks can continue.
In Tokyo, shares of NEC Electronics surged 11.4% after the Nikkei newspaper reported that Hitachi, Mitsubishi Electric and NEC Corp. are in talks to infuse a total of about 200 billion yen into Renesas and NEC Electronics to help smooth the way toward a merger of the two companies.
NEC Electronics and Renesas earlier on Wednesday said that their merger agreement would be delayed by one month until the end of September.
Toyota Motor Corp. was up 1.5%, although the company said that it will halt a production line at a plant in Japan from next year due to sluggish auto demand. Other exporters were also up, with Honda Motor gaining 0.7% and Toshiba Corp. 3% higher.
In Australia, port and rail operator Asciano Group fell 2% after it posted a 3.2% rise in fiscal 2009 earnings and said difficult conditions in the first half of this fiscal year were expected to continue.
Shares of Crown jumped 4.7% on speculation that Consolidated Media Holdings could launch a takeover bid. Consolidated Media soared 12%. Crown reports earnings Thursday.
In Korea, Daewoo International was up 1.6% in heavy trade on the company's decision to spend heavily to build gas production facilities and pipelines in Myanmar.
Korean Air Co. was up 1.3%. The company said Tuesday that it would raise its domestic business class fare from September 15, the first hike in five years.
Taiwanese shares dropped as jitters about the spread of the H1N1 flu virus hit tourism and airline stocks. About 400 people were reported to have become sick with suspected swine flu in a southern Taiwan village hit by Typhoon Morakot earlier this month. Ambassador Hotel slumped 5.5% and China Airlines fell 2%.
In foreign exchange trading, the euro was at 134.64 yen from 134.44 yen in late New York trade Tuesday, and at $1.4316 U.S. from $1.4293 U.S. The dollar was at 94.03 yen from 94.06 yen.
Elsewhere:
Singapore’s Straits Times Index tacked on 9.67 points, or 0.4%, to 2,628.43
South Korea’s Kospi index stepped forward 12.74 points, or 0.8%, to 1,614.12
Taiwan’s Taiex moved lower by 90.20 points, or 1.3%, to 6,719.21
New Zealand’s NZX 50 Index added 10.39 points, or 0.3%, to 3,090.90
Australia’s S&P/ASX 200 picked up 48.70 points, or 1.1%, to 4,454.50
