Asian markets ended mostly higher Tuesday as a recovery in the euro and prices of some commodities after a recent selloff spurred risk appetite, with banking and resource stocks fronting gains in Hong Kong and Shanghai.
Tokyo’s Nikkei 225 picked up 6.88 points to 10,242.64
In Hong Kong, the Hang Seng index grew 229.74 points, or 1.2%, to 19,944.94
Analysts attributed the day's advance to investors reversing bets that the market would fall further, though some remained skeptical that the gains could be sustained amid lingering worries about sovereign debt troubles in Europe.
In Hong Kong, shares of Industrial & Commercial Bank of China climbed 2.5%, China Resources Land surged 6.5% and Shimao Property Holdings gained 3.3%.
South Korean and Taiwanese technology stocks declined, however, after Samsung Electronics Monday said it would invest billions of U.S. dollars in 2010 on manufacturing facilities and research and development, as part of its plan to take a bigger lead in the market for memory chips and components used to make flat-panel TVs. Samsung Electronics gained 1%.
But among rivals, Hynix Semiconductor dropped 3.6% in Seoul, with Inotera Memories sliding 5.4% and Nanya Technology falling 4.2% in Taipei.
In Tokyo, Samsung Electronics' capex plans boosted shares of semiconductor-equipment makers and testers, with Advantest Corp. gaining 0.2%.
Some other exporters also gained in Tokyo as the euro regained some ground against the yen. Sony Corp. rose 0.6% after dropping 4.5% Monday.
In Sydney, Macarthur Coal plummeted 15.7% to 11.25 Australian dollars ($9.90 U.S.) after the Australian miner rejected a A$3.8-billion takeover offer from Peabody Energy, which it said was opposed by its biggest shareholder and was unlikely to succeed.
Peabody last week lowered its prior offer pitched at A$16 per Macarthur share to A$15 a share after carrying out due diligence and factoring in the potential impact of the Australian government's proposed 40% resource super profits tax.
In foreign exchange markets the euro rose to $1.2423 U.S. from $1.2392 U.S. in late New York trade Monday, and to 115.31 yen from 114.64 yen. The dollar was at 92.46 yen from 92.49 yen.
CHINA
Chinese banks and property stocks were at the center of the day's rebound led primarily by short-covering, according to traders. Some analysts also interpreted Premier Wen Jiabao's comments over the weekend -- that the government must avoid a buildup of policies that have "negative consequences" on the economy -- as a signal that policymakers were turning cautious on further tightening measures.
Shanghai’s CSI 300 improved 56.63 points, or 2.1%, to 2,771.35.
In Shanghai, Gemdale Corp. soared by the day's 10% limit and Poly Real Estate Group spiked 7.9%, while China Citic Bank Corp. climbed 3.1%.
Elsewhere;
Singapore’s Straits Times Index gained 10.66 points, or 0.4%, to 2,844.35
Korea’s Kospi index fell back 8.27 points, or 0.5%, to 1,643.24
Taiwan’s Taiex index surrendered 13.42 points, or 0.2%, to 7,585.30
New Zealand’s NZX 50 Index dropped 19.07 points, or 0.6%, to 3,151.68
Australia’s S&P/ASX 200 regained 3.50 points to 4,470.70
