Asian markets ended mostly higher Wednesday as Australian stocks climbed after the government announced a plan to return to a budget surplus in three years, while Chinese shares overcame intraday volatility to end higher as bargain seekers snapped up banks and property developers.
Tokyo’s Nikkei 225 backslid 17.07 points, or 0.2%, to 10,394.03
In Hong Kong, the Hang Seng index picked up 65.98 points, or 0.3%, to 20,212.49
Hong Kong shares staged a last-minute rebound, as European markets opened higher following the appointment of David Cameron as Britain's new prime minister and earnings reports from ING and Deutsche Telekom.
Australia shares got a boost after Treasurer Wayne Swan forecast the government's budget would return to financial surplus three years sooner than expected and before any other major advanced economy, helped by global demand for its key commodity exports. Australia & New Zealand Banking Group added 1% and National Australia Bank rose 0.8%.
Gold miners surged after burgeoning demand pushed the price of gold to a record high as investors sought safer havens with the euro tumbling across the board. Lihir Gold added 4.4% and Eldorado Gold surged 11.1% in Sydney, Sumitomo Metal Mining added 3.7% in Tokyo, and Zijin Mining Group gained 3.6% in Hong Kong.
Shares of toll road operator Transurban Group stayed under a trading halt after the company said it has rejected two takeover proposals from a consortium of its major shareholders on the grounds that neither of them offer sufficient value or certainty for its security holders.
The company plans to proceed with the 542.3 million Australian dollar ($488 million U.S.) capital raising launched Monday to raise funds to acquire the Lane Cove Tunnel in Sydney's north.
Japanese banks extended losses on worries about capital-raising, with Mizuho Financial Group dropping 1.2% and Sumitomo Mitsui Financial Group dropping 0.6%, while Mitsubishi UFJ Financial Group declined 2.4%.
But shares of exporters gained on the back of recent earnings reports. Hitachi jumped 4.7% after it swung back to profits in the January-March quarter and on hopes it is now on its way to its first full-year net profit in five years.
Toyota Motor gained 2.7% after providing Tuesday the clearest signal yet that it has stanched the bleeding associated with its global recalls, unveiling a surprise fiscal-fourth-quarter profit and forecasting an earnings increase this year as it attempts to boost sales in Asia and cut more costs.
In Seoul, a strong debut for Samsung Life Insurance helped support the market. The insurer ended the day at 114,000 Korean won ($100.50 U.S.) a share on its debut, as compared with its initial public offering at 110,000 won, although it failed to latch on to its stronger early gains. The IPO is South Korea's largest to date.
The broad market ended lower although the Bank of Korea left its interest rates unchanged at 2%, as the central bank's statement was interpreted as being more hawkish. Shares of Korea Exchange Bank dropped 2.3% and KB Financial Group lost 1.5%, while GS Engineering & Construction Corp. dropped 4.7%.
In Hong Kong, shares of HSBC Holdings advanced 1.7% and China Life Insurance Co. rose 0.6%, while property stocks ended mostly lower, though they pared early losses. Shares of Cheung Kong Holdings slipped 0.1% and Henderson Land Development Co.gave up 0.8%, while Sun Hung Kai Properties lost 0.4%, after a weak response to a land auction Tuesday strengthened fears that prices could weaken in coming months.
Beaten-down banks and property shares helped lift mainland Chinese bourses on bargain-buying, with Bank of Communications rising 2.7% and Bank of China climbing 1%, while Gemdale climbed 2.3%.
In the foreign-exchange markets, the euro came off early lows and was buying $1.2725 U.S., compared with $1.27 U.S. late Tuesday in New York, and 118.21 yen, compared with 117.88 yen. The dollar was at 92.88 yen, compared with 92.81 yen.
Elsewhere;
Shanghai’s CSI 300 tacked on 17.34 points, or 0.6%, to 2,818.16
Singapore’s Straits Times Index progressed 22.66 points, or 0.8%, to 2,880.33
Korea’s Kospi index declined 7.21 points, or 0.4%, to 1,663.03
Taiwan’s Taiex index lost 5.74 points, or 0.1%, to 7,602.70
New Zealand’s NZX 50 Index stumbled 10.95 points, or 0.4%, to 3,156.08
Australia’s S&P/ASX 200 gained 25 points, or 0.6%, to 4,573
