Shares of Japanese exporters soared, driving Asian stocks toward the biggest four-day rally since May, after the yen slid for the third day against the dollar and euro, and consumer spending lifted regional economies in the U.S.
In Tokyo, the Nikkei 225 Index leaped 368.70 points, or 3.9%, to 9,977.67
The U.S. Federal Reserve yesterday said the world’s largest economy improved "modestly" across the U.S. from October to mid-November as consumer spending increased.
The Fed said eight regions "indicated some pickup in activity or improvement in conditions," in its Beige Book report.
"We’re positive on Asia as the U.S.’s improving economy bodes well for Asian exporters," said Khiem Do, Hong Kong-based head of multi-asset strategy at Baring Asset Management (Asia) Ltd. in Hong Kong, which oversees $10 billion U.S.
In Hong Kong, the Hang Seng Index grew 264.30 points, or 1.2%, to 22,553.87.
Toyota Motor Corp., the world’s largest automaker, rose 5.6% in Tokyo. Sony Corp., which gets almost 25% of its sales from the U.S., climbed 6%. Honda Motor Co., which derives almost 60% of its sales abroad, gained 4.19%.
Sharp Corp. increased 4.98% as the stock was lifted to "neutral" from "sell" at UBS AG.
The yen climbed to a 14-year high against the dollar last week and has averaged 93.89 this year, the strongest since currencies began trading freely in 1971.
South Korea’s won fell 0.16% to 1,155.20 per dollar as the currency may be "affected" by a 50% narrowing in the current account surplus next year from more than $40 billion U.S. this year.
The Australian and New Zealand dollars gained before a government report tomorrow forecast to show U.S. job losses eased to the slowest pace in more than a year, boosting demand for higher-yielding assets.
The Kiwi and Aussie were the biggest gainers against the dollar and the yen as signs of an economic recovery spurred demand for higher-yielding securities.
Australia’s currency rose to 92.89 U.S. cents from 92.48 cents in New York yesterday, and gained 0.9% to 81.51 yen. New Zealand’s dollar climbed to 72.63 U.S. cents from 72.21 cents, and advanced 1% to 63.70 yen.
Elsewhere;
The Shanghai 300 Composite Index slid 6.45 points, or 0.2%, to 3,590.88.
Taiwan’s Taiex index advanced 7.05 points to 7,684.67
Singapore’s Straits Times index tacked on 11.84 points, or 0.4%, to 2,808.10
Korea’s Kospi index progressed 23.37 points, or 1.5%, to 1,615.00
New Zealand’s NZX Index finished 4.48 points higher to 3,153.93
Australia’s S&P/ASX 200 added 12.60 points, or 0.3%, to 4,774.60
