Asian stock markets ended higher Thursday, with Japan's Nikkei 225 Average marking its biggest rally of the year as exporters cheered a falling yen.
Tokyo’s Nikkei 225 recovered 310.05 points, or 3.2%, to 9,914.19
In Hong Kong, the Hang Seng index leaped 314.91 points, or 1.6%, to 19,786.71.
Financial shares also rose across the region, and most auto makers in Japan and South Korea advanced after data indicating a strong showing for U.S. car sales in May.
Investors took inspiration from the Dow Jones Industrial Average's 2.2% rise Wednesday, its third-biggest one-day gain this year, helped by a better-than-expected pending home sales report, a lessening of worries about European debt, and hopes that U.S. jobs data this week will inspire even more gains.
Financial stocks were in a rising mode. Consumer-finance companies led gains in Japan, while local elections in South Korea had the effect of boosting banks there.
In Tokyo, Takefuji Corp. shares jumped 12% after it said Wednesday it will redeem convertible bonds worth some ¥41.4 billion ($449 million U.S.) ahead of their June 2018 maturity, while fellow consumer-finance firm Promise Co. added 9% after UBS upgraded its rating to "neutral" from "sell".
In Korea, banks surged as the end of the country's nationwide election held Wednesday for local officials removed uncertainties in the sector.
KB Financial added 7.3%, Shinhan Financial rose 6.7% and Woori Finance surged 8.6%.
Auto makers were also mostly higher in South Korea and Japan, after overall U.S. vehicle sales in May came to 11.7 million vehicles on an annualized basis, compared with April's 11.2 million, according to Autodata Corp. of the U.S.
In Japan, shares of Toyota Motor Corp. were up 3.6%, outpaced by Honda Motor Co., up 4.3%, and Nissan Motor Co., up 4.8%.
Toyota posted a 6.7% rise in U.S. sales from May 2009 levels, compared with Nissan's 24% growth and Honda's 19.1% rise.
Kia Motors rose 3.2% in Seoul, its shares gaining on expectations new models would do well. But Hyundai Motor bucked the industry's gains, shedding 0.4% after it lost local market share in May, although U.S. sales last month notched their 17th straight on-year rise.
Among retail plays in Tokyo, Nikkei component Fast Retailing Co. jumped 7.2% after it said domestic same-store sales at its Uniqlo casual clothing chain in May grew 3.1% on-year, its first rise in three months.
In Australia, QBE Insurance moved up 2.4% after the company reassured the market about its maximum exposure to claims related to the Gulf of Mexico oil disaster. It also said it has adequate reserves in place to cover an expected increase in bodily injury claims in the U.K., calming investor nerves after rival Insurance Australia Group on Wednesday cut its insurance margin guidance due to a rise in bodily injury claims in its U.K. motor insurance business.
Among other Australian financial plays, shares of National Australia Bank added 3.8% as Commonwealth Bank of Australia tacked on 3.2%.
Equipment-for-hire group Boom Logistics powered up 35% after it said it had received a takeover approach led by Archer Capital and privately held McAleese Group.
Miners also gained, with BHP Billiton rising 2.4% and Rio Tinto adding 3.4%.
In Hong Kong, market sentiment has been supported by next month's planned initial public offering of Agricultural Bank of China.
The lender, one of China's top four state-owned banks, seeks to raise up to a combined $30 billion U.S. from listings in Shanghai tentatively scheduled for July 15 and in Hong Kong on July 16, though some fears the Shanghai listing could be curbed by market conditions.
HSBC Holdings rose 2%.
In foreign-exchange markets, the U.S. dollar and the euro continued to make gains against the yen after the resignation of Prime Minister Yukio Hatoyama on Wednesday.
Many consider Finance Minister Naoto Kan to be the front runner for Japan's top spot, speculation "that has made people more bullish on the dollar-yen," said one expert In the past, Kan has said that he prefers a weak yen, which makes Japanese exports more competitive.
The dollar was at ¥92.68 compared with ¥92.14 in late New York trading Wednesday, while the euro stood at $1.2305 from $1.2240 U.S. and ¥114.05 from ¥112.78.
CHINA
China's Shanghai Composite got left out of the regional cheer, however.
Shanghai’s CSI 300 slid 21.95 points, or 0.8%, to 2,736.08, on persistent fears about the mainland's economy.
Data earlier this week showed a slowdown in growth of factory activity, and many investors remain concerned that Beijing will take further steps to fight inflation and cool the overheated property market.
In Shanghai, Poly Real Estate Group slipped 2.9% and Bank of China gave up 1.3%.
Elsewhere;
Singapore’s Straits Times Index picked up 65.90 points, or 2.4%, to 2,793.47
Korea’s Kospi index returned from holiday to add 31.44 points, or 1.9%, to 1,661.84
Taiwan’s Taiex index soared 164.57 points, or 2.3%, to 7,360.28
New Zealand’s NZX 50 Index tacked on 5.21 points, or 0.2%, to 3,024.10
Australia’s S&P/ASX 200 jumped 105 points, or 2.4%, to 4,486.00
