Shares in Shanghai and Hong Kong led a broad advance in Asia Tuesday, as automobile stocks rose on strong September sales data and power utilities rallied on an improving economic outlook.
The Shanghai’s 300 Composite Index advanced 46.88, or 1.5%, to 3,198.52.
Coal producers and power generators were leading gains in China, with Zhengzhou Coal Industry & Electric Power rising by the daily limit of 10%. China Shenhua Energy Co. also finished up 2.7% in Shanghai, while Guangdong Baolihua New Energy Stock Co. jumped 7.2% in Shenzhen.
Chinese automobile shares also advanced on news that passenger vehicle sales jumped nearly 84% in September from a year earlier lifting total sales in the first nine months of the year by more than 34% to 9.66 million units. SAIC Motor added 2.6% in Shanghai while Chongqing Changan Automobile Co. rose 1.6% and FAW Car Co. added 0.9% in Shenzhen.
Baoshan Iron & Steel Co. rose 2.3% in Shanghai, while Maanshan Iron & Steel rose 4.2% in Shanghai and 1.9% in Hong Kong.
In Hong Kong, the Hang Seng index vaulted 168.01 points, or 0.8%, to 21,467.36. In Hong Kong, Geely Automobile Holdings jumped 4.7%.
SAIC also forecast that its net profit for the January to September period will rise by more than 70% from the year-earlier period. Chongqing said it expected its profit for the same nine-month period to grow between 133% and 150%.
Steelmakers gained across the region.
In Tokyo, the Nikkei 225 gained 60.17 points, or 0.6%, to 10,076.56. In Japan, shares of Nippon Steel Corp. and JFE Holdings jumped 4.8% each, while Kobe Steel rose 2.5%. In Seoul, Posco slipped 0.2% but outperformed the market, while Bluescope Steel jumped 4.3% in Sydney.
South Korean stocks fell as news of North Korea's test-firing of five short-range missiles on Monday damped sentiment, though the South Korean won edged higher against the U.S. dollar.
Financials dropped on caution before U.S. banks' earnings, with Samsung Securities falling 2.3% and Industrial Bank of Korea losing 4%.
STX Corp. skidded 10.7% on equity dilution concerns after it said Monday that it will issue 162.5 billion won ($114 million U.S.) worth of new shares to boost its capital.
Financial stocks in Sydney recovered from Monday's sell-off. Australia & New Zealand Banking Corp. rose 1.8% and Commonwealth Bank of Australia climbed 1.9%. BBY Senior Institutional Trader Peter Copeland said he remained bullish and noted that "any dips in the market are continually being met by buying from asset allocation."
In Hong Kong, casino stocks declined on concerns Macau may restrict the number of gaming tables and propose other measures to curb growth in the sector, after The Wall Street Journal reported the Macau government met the city's six casino operators as part of a review to look at the size and growth of the gambling industry. SJM Holdings dropped 3.7% and Melco International Development tumbled 4.3%, while Galaxy Entertainment Group slipped 0.8%
Japanese government bonds were lower on weakness in U.S. Treasurys on Friday. The Japanese market and the U.S. Treasurys markets were closed Monday. The lead December JGB futures contract was down 0.04 at 139.09 points, while the 10-year cash JGB yield was up two basis points at 1.300%.
Elsewhere:
Taiwan’s Taiex index slid 3.28 points to 7,596.60
Singapore’s Straits Times index settled 12.07 points, or 0.5%, to 2,668.40
Korea’s Kospi index gave back 10.88 points, or 0.7%, to 1,628.43
New Zealand’s NZX 50 Index fell 9.42 points, or 0.3%, to 3,169.46
Australia’s S&P/ASX 200 finished 45.90 points, or 1%, higher at 4,785.70.
