Asian markets were mixed Tuesday with steel makers leading declines in China on concerns over inventory levels, while South Korea's Kospi closed at its highest level since June 2008.
Elsewhere in Asia, investors were cautious ahead of the U.S. Federal Reserve's policy meeting as well as the G20 summit this week.
In Hong Kong, the Hang Seng index leaped 228.29 points, or 1.1%, to 21,701.14.
Shares of market heavyweight China Mobile rose 2.4%, helped by a strong addition in mobile subscribers in August. Energy producer Cnooc climbed 0.9% after Nomura upgraded the stock to "neutral" from "reduce."
Japanese markets had the day off
In Seoul, South Korea's Kospi gained 1.4%. Technology shares led the gains on rising DRAM memory chip prices, with Samsung Electronics jumping 3.4% and Hynix Semiconductor climbing 2.8%.
Samsung was also helped after Citigroup raised its stock target price in anticipation of strong earnings growth. Foreign investors continued to drive the Korean stock market higher, said at least one expert.
In Singapore, commodity plays were lifted by news that China Investment Corp. was taking a stake in Noble Group. Noble's stock remained suspended from trade. Shares of Olam International gained 3% and Wilmar International added 2.5% by late afternoon.
In Taipei, shares of Innolux Display gained 3.9% in a downbeat market after Economic Daily News reported it has formed an alliance with Japan's Ichia to compete for more LED monitor orders.
In Australia, Macquarie Private Wealth Client Adviser Shannon Briggs said comments from the U.S. Federal Reserve meeting could be a swing factor this week, but the equity market rally could resume if the Fed remained cautiously upbeat. Shares of Rio Tinto slipped 0.5% and Woodside Petroleum slid 1.4%.
In foreign exchange markets, the euro was buying $1.4788 U.S. from $1.4676 U.S. in late New York trade on Monday, and 135.12 yen from 135.09 yen. The U.S. dollar was changing hands for 91.71 yen from 92.05 yen.
The New Zealand dollar soared after the country posted a second-quarter current account surplus of NZ$124 million, compared with expectations for a NZ$1.99 billion deficit. The kiwi dollar was also helped after Fonterra Co-Operative Group Ltd. announced a 12% increase in its forecast payout for the 2010 season to its 10,500 shareholder farmers in a sign of increasing confidence about strengthening dairy demand. The kiwi dollar was recently buying $0.7214, from $0.7077 before the news.
CHINA
Shanghai’s 300 Composite Index stumbled 77.58 points, or 2.4%, to 3,131.03.
Baoshan Iron & Steel was down 4.2%, Angang Steel lost 4.8% and Aluminum Corp. of China gave up 3.3%.
Fundraising concerns continued to weigh on mainland Chinese stocks, after Guoyuan Securities said it had received approval to raise up to 10 billion yuan through a public offering of new shares. Guoyuan slumped 6.7% in Shenzhen, while China Minsheng Banking Corp. lost 2.8% in Shanghai.
Elsewhere:
South Korea’s Kospi index regained 23.38 points, or 1.4%, to 1,718.88.
Taiwan’s Taiex shaved off 33.43 points, or 0.5%, to 7,469.03
New Zealand’s NZX 50 Index fell 12.79 points, or 0.4%, to 3,142.86
Australia’s S&P/ASX 200 retreated 13.70 points, or 0.3%, to 4,663.70
