Most major Asian markets kicked off 2010 on a positive note Monday as strong manufacturing data from China and India helped support hopes for continued economic recovery.
The Nikkei 225 index started the year ahead 108.75 points or 1% to 10,654.79.
Hong Kong’s Hang Seng Index slid 49.22 points, or 0.2%, to 21,823.28.
Japanese shares climbed as exporters advanced on the yen's recent weakness, while Japan Airlines powered higher on hopes for a new financial lifeline.
In Hong Kong, China Petroleum & Chemical shed 2.6% while ICBC gave up 1.1%.
Pacing gains in Tokyo, Japan Airlines surged 31% with strong volumes, after the Japanese government asked state-backed Development Bank of Japan to extend more financial support to the airline. In a statement on its Web site Sunday, DBJ said it will urgently consider and decide on the request to cooperate with the safe operation of the airline.
Japanese exporters were also higher, with Sony rising 2.3% and Honda Motor gaining 1.9%.
Still, many Asian indexes rose more than 20% in 2009 and the valuations were perhaps looking overstretched in this early stage of the New Year.
In Seoul, the stock exchange suspended trading in shares of Kumho Tire, amid speculation about a possible bankruptcy filing surrounding the company. However, an official at Korea Development Bank, who declined to be named, said the company was not bankrupt as its debts have been frozen as part of a debt-workout program.
Steel stocks rose in Taipei, with China Steel up 3.3% after the Economic Daily reported the island state's largest steelmaker by revenue will work through the Lunar New Year holiday in February to meet stronger-than-expected demand.
The euro was at $1.4299 U.S. against $1.4324 U.S. and at 132.94 yen versus 132.35 yen. The dollar was at 92.93 yen compared with 93.10 yen early afternoon in New York Thursday.
CHINA
Shanghai-listed shares retreated on concerns about rising inflation on the mainland and as investors locked in gains after a four-session rally.
The Shanghai 300 Composite Index fell 16.27 points, or 0.5%, to 3,559.41.
The gains in some regional markets were helped by data showing that China's manufacturing activity, measured by the HSBC purchasing managers' index, rose to 56.1 in December from 55.7 in November.
The trend indicated by the figures was in line with data released separately last week by the China Federation of Logistics and Purchasing, which showed China's PMI rose to 56.6 in December from 55.2 in the previous month. A reading above 50 indicates an increase in manufacturing activity.
In a note released Monday, Credit Suisse analysts wrote that inflation on the mainland was likely to pick up throughout 2010 on higher food prices and utility fees, as well as domestic wage rates.
Ranking among the decliners in Shanghai, Beijing Huaye Real estate dropped 2.2%, Baoshan Iron & Steel fell 2.2% and Industrial & Commercial Bank of China slid 1.7%.
Elsewhere;
Korea’s Kospi Index picked up 13.37 points, or 0.8%, to 1,696.14.
Taiwan’s Taiex index moved ahead 19.74 points, or 0.2%, to 8,207.85
Singapore’s Straits Times index backpedaled 3.07 points to 2,894.55
New Zealand’s NZX Index had the day off.
Australia’s S&P/ASX 200 moved up 5.70 points, or 0.1%, to 4,876.30.
