Most major equity markets across Asia strengthened Friday, taking their cue from a rally on Wall Street, with shares in China leading the way higher.
Markets were higher on "positive leads from the U.S. flow through, boosting speculation the worst of the global crisis is behind us," said Ben Potter, a research analyst at IG Markets in Melbourne.
In Tokyo, the Nikkei 225 gained back 15.82 points, or 0.2%, to 10,282.99.
In Hong Kong, the Hang Seng index rocketed ahead 379.21 points, or 1.7%, to 22,589.73.
Shares of supermarket giant Wesfarmers Ltd. gained 6.9%, to close at their highest level in a year, after it said it saw a 7.3% rise in total food and liquor sales at its Coles supermarket chain for the first quarter, with comparable store sales up 6.1%. Rival Woolworths Ltd. saw its stock fall 0.3%.
Also in Sydney, Woodside Petroleum fell 1.8% after third-quarter production dropped 5.0% on year. Its efforts to secure gas supply for the expansion of its Pluto project also suffered a setback, with two potential suppliers opting to funnel gas to a Chevron project instead.
The Hong Kong market posted one of the bigger gains in Asia with the Hang Seng Index hitting a high of 22,620.01 points, its strongest level since August 2008. One expert said he expected the index to test 23,000 soon, given abundant liquidity.
Oil plays were boosted by continued strength in crude-oil prices with Cnooc up 5.4% and PetroChina up 3.6%.
Korean stocks were pulled higher by car makers, with Hyundai Motor up 6.3%, while Kia Motors added 6.7% on news it swung to a net profit in the third quarter, helped by tax incentives and its new car models.
But Hynix fell 0.3%. The world's second-largest producer of computer memory chips by revenue swung to a net profit of 246.3 billion Korean won, from a net loss of 1.67 trillion won a year ago. The result was lower than expected. A Dow Jones Newswires poll of analysts had forecast a net profit of 352.9 billion won.
There are "some undercurrents in technology right now as Apple and Intel have really raised the bar and pushed memory names on pricing power and new product mix coupled with today's launch of Windows 7," said Brett McGonegal, a managing director at Cantor Fitzgerald. "The real question here is how much is priced in?" he said.
In Tokyo, chip-makers Elpida Memory Inc. and Toshiba Corp. fell 0.9% each, while Rohm Co. climbed 0.8%. And in Taipei, Powerchip Semiconductor rose 6.4% and Nanya Technology added 0.9%.
In New Zealand the index was helped by strength in heavyweights with Telecom up 0.4% and Fletcher Building 1.2% higher. Hamilton Hindin Green broker Grant Williamson said "the market is more mixed than anything. There is a lack of news; nothing to latch onto."
In currency markets, the euro was off its early peak against the U.S. dollar, which in turn was pushing higher against the Japanese yen.
The single currency was at $1.5014 U.S. after rising to $1.5060 U.S., its highest level since August 13, from $1.5031 late in New York. The U.S. dollar was up against the yen, at ¥91.88 from ¥91.28 in New York, with the euro pulled higher against the yen, too, at ¥137.97 from ¥137.20.
CHINA
The Shanghai’s 300 Composite Index picked up 65.93 points, or 2%, to 3,413.25.
UBS Securities raised its 2009 growth forecast for China to 8.4% from 8.2%, saying "consumption has been resilient with retail sales boosted by strong government consumption and subsidies on electric appliances and automobiles."
China shares were also strong, led by auto makers and banks. Chongqing Changan Automobile closed up 3.1%, SAIC Motor up 1.8% and China Merchants Bank 2.7% higher.
Elsewhere:
Taiwan’s Taiex index gained 41.35 points, or 0.5%, to 7,649.28
Singapore’s Straits Times index prospered 33.37 points, or 1.2%, to 2,715.34
Korea’s Kospi index moved ahead 9.84 points, or 0.6%, to 1,640.17
New Zealand’s NZX 50 Index added 13.24 points, or 0.4%, to 3,214.93
Australia’s S&P/ASX 200 finished 46.60 points, or 1%, higher at 4,859.40
