Asian markets got a positive jolt from news that Dubai received $10 billion in financing from Abu Dhabi, with investors buying stocks and higher-yielding currencies on relief that there would be no default on Dubai bonds maturing Monday.
In Tokyo, the Nikkei 225 Index dipped 2.19 points Monday to 10,105.68
In Hong Kong, the Hang Seng Index moved ahead 183.64 points, or 0.8%, to 22,085.75.
The turnaround in markets came after Dubai said it authorized a $4.1-billion U.S. payment on a Dubai World bond obligation maturing Monday from the Abu Dhabi funds. Dubai said the remaining funds would go toward interest expenses and working capital through April.
Shares of HSBC Holdings and Standard Chartered, which had lost ground on concerns over the banks' exposure to Dubai World debt, rebounded in Hong Kong, with heavyweight HSBC rising 1.4%, while Stanchart gained 4.8%.
Commodity-linked shares also played a leading role in the rebound. BHP Billiton rose 0.4%, and Rio Tinto gained 0.5% in Sydney, with both stocks coming off early declines. Inpex Corp. gained 0.6% and commodities trading house Marubeni Corp. added 1.5% in Tokyo.
Korea Zinc Co. added 2.9% in Seoul, while Aluminum Corp. of China jumped 2.6% in Hong Kong and 4.4% in Shanghai.
The Australian market had lost ground earlier in the day as investors cashed in on some big names to fund their participation in Woodside Petroleum's 2.5-billion-Australian-dollar ($2.28-billion) entitlement offer. Woodside shares were halted from trading to allow for the institutional placement to be completed.
Most other markets had also dropped earlier in the day. Investors were expected to wait for cues from a host of central-bank policy meetings this week, led by the Federal Reserve, the Bank of Japan and others in Sweden and the Philippines.
In Tokyo, the Bank of Japan's Tankan survey failed to inspire as it provided mixed signals on the economy, with the better-than-expected headline diffusion index offsetting a weak capital-expenditure gauge.
In South Korea, Meritz Securities and Meritz Investment Bank surged 14.8% and 9%, respectively, after their boards approved a plan to merge on April 1. Meritz Securities owns a 55.5% stake in Meritz Investment.
Motherboard and notebook PC maker Asustek dropped by the daily limit of 7% in Taipei after saying it would spin off its contract manufacturing unit Pegatron Technology in July 2010, cutting its stake to 25%.
Elsewhere;
The Shanghai 300 Composite Index regained 37.73 points to 3,612.75
Taiwan’s Taiex index was up 24.06 points, or 0.3%, to 7,819.13
Singapore’s Straits Times index slid 1.21 points to 2,799.54
Korea’s Kospi index gained 7.87 points, or 0.5% to 1,656.90
New Zealand’s NZX Index finished 29.19 points, 0.9%, lower at 3,098.80
Australia’s S&P/ASX 200 climbed 18.80 points, or 0.4%, to 4,654.00
