Asian equity markets ended mostly higher Tuesday, as regional financial and airline stocks gained after Monday's sharp losses on an overnight rise on Wall Street.
In Tokyo, the Nikkei 225 fell 8.09 points to 10,900.68, surrendering early gains in cautious trade after the rate hike by India and also amid sovereign debt issues in Europe.
In Hong Kong, the Hang Seng index recovered 218.21 points, or 1%, to 21,623.38.
Market sentiment was starting to improve as Wall Street stocks rebounded from losses posted on Friday in the wake of news that U.S. regulators had filed civil fraud charges against Goldman Sachs.
Many regional financial stocks were recouping some of Monday's losses triggered by the Goldman news. Shares of HSBC Holdings climbed 1% in Hong Kong, Mizuho Financial Group advanced 0.5% in Tokyo, United Overseas Bank added 0.8% in Singapore trading and National Australia Bank rose 2.7%.
The rise in NAB shares came after the Australian Competition and Consumer Commission opposed the bank's 13.29 billion Australian dollar ($12.4 billion U.S.) plan to buy AXA Asia Pacific Holdings Ltd. Buyers were piling into the stock on relief the bank wouldn't need to conduct a large capital raising to fund the acquisition. AXA was off 2.8%.
AMP dropped 1.7% as the scuttled deal spurred expectations of a capital-raising to fund the company's increased offer for AXA Asia Pacific.
In Hong Kong, China Minsheng Banking added 2.6% despite its 2009 results coming in below analysts' expectations as the market responded positively to the company's plan to issue two bonus shares for every 10 shares held as well as a plan to pay a dividend.
The gains in Hong Kong were also aided by a sharp 3.3% increase in heavyweight China Mobile's shares ahead of its quarterly results.
Australian shares trimmed early gains after Harvey Norman Holdings' sales report, with the stock falling 5.3% after saying its underlying sales for the first nine months of the fiscal year rose 2.2% from a year earlier.
Auto makers broadly gained around the region. The industry was up in South Korea on expectations for solid earnings due later this week, while peers in Japan got a fillip as the yen weakened against the U.S. dollar. Honda Motor added 0.5% and Nissan Motor gained 0.6% in Tokyo, while South Korea's Hyundai Motor jumped 3.4%.
Isuzu Motors stock surged 4.6% in Tokyo after the auto maker said it now expects a fiscal year group net profit of 8 billion yen ($87 million U.S.), a turnaround from its previous forecast for a five-billion-yen loss.
Most airline stocks were recovering on hopes air travel constraints imposed across much of Europe due to ash from a volcanic eruption in Iceland will ease. Air New Zealand gained 0.7%, Singapore Airlines advanced 1.9%, Cathay Pacific Airways tacked on 1% in Hong Kong and All Nippon Airways rose 2.8% in Tokyo.
Elsewhere;
Shanghai’s CSI 300 Index lost 3.05 points, or 0.1%, to 3,173.37
Korea’s Kospi index moved up 12.73 points, or 0.8%, to 1,718.03
Singapore’s Straits Times Index gained 20.44 points, or 0.7%, to 2,981.37
Taiwan’s Taiex index regained 46.20 points or 0.6% to 7,900.42
New Zealand’s NZX 50 Index tacked on 10.91 points, or 0.3%, to 3,293.11
Australia’s S&P/ASX 200 picked up 10.70 points, or 0.2%, to 4,925.80
