Most Asian stock markets bounced back Thursday as the U.S. Federal Reserve's more upbeat economic assessment and strong corporate earnings reports helped investors to buy into beaten-down regional stocks.
In Tokyo, the Nikkei 225 Index regained 162.21 points, or 1.6%, to 10,414.29
Hong Kong’s Hang Seng Index finally reversed course and gained a whopping 323.30 points, or 1.6%, to 20,356.37, snapping a six-session losing streak.
Some analysts remained cautious amid concerns about policy tightening by central banks in Asia as well as possible restrictions over banks in the U.S.
The rebound came in the wake of overnight gains on Wall Street, after the Fed left interest rates unchanged.
Strong corporate earnings from some regional heavyweights helped support the markets.
In Tokyo, shares of Canon Inc. added 1.8% after its net profit for the quarter ended Dec. 31 jumped more than five times the comparable year-ago profit. NEC Electronics Corp. surged 14% on a smaller-than-expected fiscal-third-quarter loss. Shares of Honda Motor Co. rose 3.3% and Sony Corp. jumped 4.9% after the Nikkei newspaper reported they expected a sharp recovery in profits on strong overseas demand, with the yen's weakness against major currencies supporting the advance.
Toyota Motor remained under pressure, down 3.9%, on continuing concerns following its recall of vehicles and the halt of sales of eight models in the U.S.
In Seoul, Hyundai Motor finished 4.1% higher after reporting its fourth-quarter net profit nearly quadrupled from the year-earlier period.
In Hong Kong, Hang Seng Index heavyweight HSBC Holdings as well as Chinese lenders rose on bargain-buying after a string of recent declines. HSBC gained 1.2%, Industrial & Commercial Bank of China advanced 3.6% and China Construction Bank added 3%. Shares of energy producer Cnooc soared 4.2% after Citigroup upgraded the stock to a "buy" from "sell" after a sharp decline in the share price recently.
Bargain hunters also lifted the market in Sydney, pushing BHP Billiton up 1%, while Rio Tinto gained 2.2%.
In foreign exchange markets, the dollar rose against the yen. The dollar was at 90.42 yen from 89.97 yen in late New York trade Wednesday. The euro was at $1.4034 U.S. from $1.4021 U.S. and at 126.90 yen from 126.17 yen.
CHINA
In Shanghai, however, the gains were more modest amid lingering concerns over credit tightening.
The Shanghai 300 Composite Index tacked on eight points, or 0.3%, to 3,206.57.
Property and airline shares led the market higher, but banks remained weak; shares of Air China jumped 3.5% and Poly Real Estate Group Co. gained 1.2%, but ICBC fell 0.8% and CCB dropped 0.5% among banks.
Elsewhere:
Korea’s Kospi Index was 16.95 points, or 1%, higher to 1,642.43
Taiwan’s Taiex index grew 134.55 points, or 1.8%, to 7,694.58
Singapore’s Straits Times index added 51.42 points, or 1.9%, to 2,757.68
New Zealand’s NZX Index was the lone loser, taking off 9.97 points, or 0.3%, to 3,183.60
Australia’s S&P/ASX 200 gained 28.70 points, or 0.6%, to 4,673.30
