Most Asian markets rallied Thursday as stronger-than-expected jobs data from Australia, buoyant commodity prices and news of Alcoa's return to profit spurred investors' appetite for risk.
In Tokyo, the Nikkei 225 gained 32.87 points, or 0.3%, to 9,832.47.
In Hong Kong, the Hang Seng index continued its hot streak, jumping another 251.31 points, or 1.2%, to 21,492.90. Heavyweight HSBC Holdings rose 1.8% on news the banking major is in advanced talks to buy the retail and commercial banking assets of Royal Bank of Scotland in some Asian countries.
Australia's index rose 1.6% to 4,768.60 for its highest finish in more than a year. The index's rise for a third day came after official data showed the nation's unemployment rate fell to an adjusted 5.7% in September from 5.8% in August. Furthermore, 40,600 jobs were created during the month, trouncing expectations of a 5.9% unemployment rate and a loss of 10,000 jobs.
Regional metals companies got a boost after U.S. aluminum giant Alcoa posted a third-quarter profit, belying expectations, after the company recorded three quarterly losses in a row.
After the U.S. markets closed, Alcoa also said it saw signs that key markets were stabilizing and predicted global aluminum consumption would increase 11% in the second half of 2009. Its shares gained 5.7% in after-hours trade. Broadly firmer base-metals prices on the London Metals Exchange were also supportive.
That lifted shares of Alumina, Alcoa's Australian joint-venture partner, by 4.6% in Sydney.
Elsewhere, Korea Zinc rose 4.2%, Aluminum Corp. of China gained 4.3% and Jiangxi Copper added 2% in Hong Kong, while India's Sterlite Industries advanced 2% and National Aluminium rose 1.8% in afternoon trading.
Gold miners rose further as spot gold rallied after hitting a record $1,051.35 U.S. an ounce.
Gold's driven by the weaker U.S. dollar on the back of Australia's bullish employment data. The metal was recently up $11.70 at $1,056.30 U.S., after rising as high as $1,059.40 U.S. earlier in the day.
But the rise in gold-related shares was modest compared with the hefty gains they have recorded recently. Lihir Gold rose 1% and Newcrest Mining ended flat in Sydney, while Real Gold Mining added 3.8% and Zhaojin Mining Industry advanced 0.7% in Hong Kong.
Australian banks were also helped by the stronger-than-expected jobs data.
National Australia Bank rose 4.4% and Commonwealth Bank of Australia climbed 3.3%. Westpac ended up 3.1%, shrugging off a decline that came after the bank lost a New Zealand High Court case against the Inland Revenue Department.
In Hong Kong, shares of three companies that made their debuts Thursday posted strong gains after a string of lackluster listings.
Ausnutria Dairy compared with its initial public offering at HK$4; Yingde Gases Group finished at HK$7.84 from its IPO at HK$7 and China Vanadium Titano-Magnetite rose to HK$3.68 from HK$3.50.
Korean shares rebounded during the session after a string of declines and amid caution ahead of the Bank of Korea's policy meeting Friday.
Hyundai Motor shares rebounded 3.1% after dropping in the previous two sessions, but Samsung Electronics slipped 0.6%, taking its losses to a fifth session amid worries about a rising Korean won.
In foreign-exchange markets the U.S. dollar was lower against the yen as the strong Australian jobs data fueled risk appetite. The dollar was at 88.24 yen compared with 88.62 yen late in New York trade. The euro rose to $1.4765 U.S. from $1.4672 U.S., and 130.31 yen, compared with 130.05 yen.
Shanghai markets had the day off.
Elsewhere:
Taiwan’s Taiex index stumbled 105.35 points, or 1.4%, to 7,503.31
Singapore’s Straits Times index picked up 16.32 points, or 0.6%, to 2,650.95
Korea’s Kospi index advanced 17.46 points, or 1.1% to 1,615.46
New Zealand’s NZX 50 Index gained 27.75 points, or 0.9%, to 3,168.94
Australia’s S&P/ASX 200 finished 72.90 points, or 1.6%, higher at 4,768.60.
