Major Asian markets advanced Wednesday as hopes for a rescue package for Greece improved appetite for risk and drove resources and shipping stocks higher across the region.
In Tokyo, the Nikkei 225 Index reversed course and added 31.09 points, or 0.3%, to 9,963.99, after several days of heavy losses.
Hong Kong’s Hang Seng Index gained back 131.94 points, or 0.7%, to 19,922.22.
But stock gains in many markets were slight as investors remained cautious.
Germany was considering a plan with its E.U. partners to offer Greece and other troubled euro-zone members loan guarantees. The goal: to calm fears of a government default and prevent a widening of the credit woes in the euro zone, people familiar with the matter said.
Shipping and resources stocks advanced across markets, underpinned by gains in commodities Tuesday as well as strong gains on Wall Street.
Nippon Yusen climbed 2.8% and Mitsui O.S.K. Lines added 2.8% in Tokyo.
China Shipping Container Lines jumped 4.6% in Hong Kong, Korea Line advanced 1.6%, and Yang Ming Marine gained 1.6% in Taipei.
Among commodity stocks, Rio Tinto tacked on 1.4% and Newcrest Mining rose 1.1% in Sydney.
Hong Kong-listed shares of Jiangxi Copper added 2.7% and Japan's Inpex climbed 1.4%.
Shares of BHP Billiton rose sharply during the session after it reported earnings for the six months ended Dec. 31 more than doubled. But the stock retraced much of the early gains after the miner sounded a note of caution on the short-term outlook for commodities demand. It ended 0.1% higher.
Shares of Boral jumped 4.4% after a stronger-than-expected first-half net income.
In Tokyo, Honda Motor dropped 1.6% on news the company has expanded its vehicle recall to include more than 900,000 vehicles worldwide due to fix any possible malfunctioning of airbags.
Nissan Motor climbed 1.6% after its Tuesday announcement that it raised its profit and revenue forecast for the financial year ending March 31. The company said it expects to post a profit compared with a previously projected loss.
Sony added 1.2% after Chief Financial Officer Nobuyuki Oneda said in an interview with the Nikkei that the company now aims to sell 20 million or more liquid-crystal-display television sets worldwide in the fiscal year ending March 2011, up from its 15-million-unit target for the current fiscal year.
Australian banks lost ground despite solid results from Commonwealth Bank of Australia as the lender's interim dividend of 1.2 Australian dollars ($1.06 U.S.) a share fell short of expectations. CBA dropped 1.7%, while National Australia Bank shed 2.3%.
In foreign-exchange markets, the euro lost some ground against the U.S. dollar and the yen, with some investors cautious ahead of Thursday's holiday in Japan. The euro appreciated Tuesday on expectations the E.U. would step in to help out Greece.
The euro was fetching $1.3763 U.S. against $1.3779 U.S. late in New York Tuesday, and 123.45 yen versus 123.52 yen. The dollar was buying 89.69 yen compared with 89.63 yen.
Elsewhere:
The Shanghai 300 Composite Index gained 44.94 points, or 1.4%, to 3,214.13
Korea’s Kospi Index was 0.37 points lower to 1,570.12
Taiwan’s Taiex index jumped 80.80 points, or 1.1%, to 7,441.84
Singapore’s Straits Times index slid 10.63 points, or 0.4%, to 2,734.39
New Zealand’s NZX Index tacked on 9.06 points, or 0.3%, to 3,085.51
Australia’s S&P/ASX 200 gained 8.30 points, or 0.2%, to 4,513.40
