Asian markets rallied Wednesday, with resource shares rising sharply on higher commodity prices, while a weaker yen boosted Japanese exporters.
The Nikkei 225 index in Tokyo gained 272.58 points, or 2.7%, to 10,306.83, its biggest single-day climb of the year so far.
The Hang Seng Index in Hong Kong sprinted ahead 265.32 points, or 1.3%, to 20,354.01.
Hong Kong shares advanced as trading resumed for the first time this week after the Lunar New Year holidays, aided by Chinese lenders, which shrugged off the People's Bank of China's decision Friday to increase banks' reserve requirements.
Concerns about Greece were on the backburner, although European Union finance ministers Tuesday stopped short of an explicit rescue plan for the country. Traders said worries appear to have eased somewhat after the E.U. gave the fiscally stressed country until mid-March to devise a more comprehensive fiscal consolidation plan for 2010.
Regional resource and shipping stocks marched higher on the back of an increase in gold and crude-oil prices.
In Australia, BHP Billiton added 2.1%, Rio Tinto gained 3.3% and Newcrest Mining tacked on 4.3%. Mitsui O.S.K. Lines surged 5% and commodities trader Marubeni Corp. gained 3.1% in Tokyo, Yanzhou Coal Mining gained 2.4%, Zijin Mining Group rose 2.7% and China Cosco Holdings added 2.1% in Hong Kong.
Gains on Wall Street and a weakened yen propelled several Japanese exporters. Canon jumped 4.2%, Nikon surged 5.5% and Nissan Motor advanced 3.2%.
Toyota Motor managed to reverse earlier losses to end flat in the buoyant market, although the auto maker said Tuesday it plans to temporarily suspend production at two U.S. assembly plants as it adjusts production to inventory levels amid the string of recent recalls.
U.S. President Barack Obama's announcement of $8.3 billion U.S. in federally backed loans to the country's nuclear-power industry boosted industry players in Japan. Toshiba soared 6.3%, Hitachi climbed 2.7% and Mitsubishi Heavy Industries gained 2.8%.
Chinese banks added to overall market gains in Hong Kong, ignoring the PBOC's move Friday to increase lenders' reserve requirements by a half-point. Deutsche Bank analysts said the monetary tightening measure was expected to marginally lift bank earnings by improving the return on their excess reserves.
Shares of Industrial & Commercial Bank of China gained 2.2% and Bank of China advanced 1.8%.
In Sydney, banking shares extended gains, with Westpac Banking advancing 2.8% on brokerage upgrades following its strong quarterly trading update Tuesday. National Australia Bank shares climbed 3.5%, while Australia & New Zealand Banking Group gained 4.6%.
In Seoul, Daewoo Engineering & Construction remained in the spotlight after STX Group said it is interested in joining a private equity fund led by Korea Development Bank as a strategic investor to acquire a controlling stake in the company. The stock climbed 4%, on top of its 6.1% advance Tuesday.
In foreign exchange trading, the euro advanced against major currencies on a broad improvement in risk appetite. It rose to $1.3775 U.S. from $1.3772 U.S. late Tuesday in New York, and to 124.41 yen from 124.08 yen. The dollar was buying 90.31 yen, compared with 90.11 yen.
Elsewhere:
Markets in Shanghai and Taiwan were shut down for public holidays.
Korea’s Kospi Index moved ahead 26.38 points, or 1.7%, to 1,627.43
Singapore’s Straits Times Index improved 35.16 points, or 1.3%, to 2,794.06
New Zealand’s NZX Index gained 23.45 points, or 0.8%, to 3,111.06
Australia’s S&P/ASX 200 moved higher 100.10 points, or 2.2%, to 4,667.90
