Most Asian stocks and currencies jumped on Thursday as hopes for strong corporate results in the region as well as in the U.S. spurred risk appetite.
Japan’s Nikkei 225 average jumped 256.09 points, or 2.8%, to 9,535.74
Hong Kong’s Hang Seng index zoomed ahead 193.49 points, or 1%, to 20,050.56
Overall regional sentiment was bolstered by Wednesday's Wall Street rally. The Dow Jones Industrial Average posted its biggest one-day gain since May 27, rising 2.8% to 10,018.28, after bullish U.S. retail chain store sales, improved earnings guidance from State Street, and optimism over European bank stress tests.
Australian stocks got a lift from a stronger-than-expected June employment report, which also helped push the Australian currency sharply higher against the U.S. dollar. 49,500 jobs were added to the labor force in June, compared with 15,000 additions expected.
The data pulled financial, material and energy plays higher, with Australia & New Zealand Banking Group surging 4.3% to lead the major banks, while BHP Billiton rose 2% and Rio Tinto climbed 1.8% in the mining space.
In Tokyo, exporters surged as the yen weakened against the euro and the U.S. dollar, while companies with exposure to the euro zone were lifted by hopes that the uncertainty surrounding the region would be cleared up after bank stress tests are released later in the month.
Mazda Motor Corp. gained 3.9%, Sony Corp. rose 4.4%, and Nikon Corp. added 4.1%.
Regional technology stocks were lifted by the Nasdaq Composite's 3.1% surge Wednesday. Toshiba Corp. gained 2.5% in Tokyo. Chip makers reversed the previous day's losses, with Inotera Memories rising 2.8% in Taipei and Elpida Memory soaring 4.5% in Tokyo, while Samsung Electronics advanced 0.8% in Seoul.
Japanese retail giant Aeon rose 1.4% on solid March-May earnings posted late Wednesday.
Shares of Semiconductor Manufacturing International tumbled 10.2% in Hong Kong after it Thursday confirmed plans to sell up to 1.56 billion Hong Kong dollars ($200.3 million U.S.) worth of new shares to its largest shareholder, Datang Telecom Technology & Industry Holdings, and other independent investors on the open market to fund a capacity expansion.
In Seoul, hopes of robust second-quarter earnings helped the rally.
Hynix Semiconductor gained 0.8% and LG Display added 1.1%. Among financials, KB Financial Group gained 4.7% and Woori Finance Holdings rose 3.2%.
The euro also rallied as the Australian data added to improved risk appetite fueled by stronger equities and hopes that uncertainty over the euro zone's banking sector would be cleared up by a bank stress report due later this month.
Europe's banking supervisor late Wednesday named the 91 banks that it will test for resilience to further market and credit risks and laid out the key features included in the tests.
The single currency was buying $1.2656 from $1.2648 U.S. in late New York trade Wednesday, and 111.63 yen compared with 110.93 yen. The dollar was at 88.17 yen, compared with 87.70 yen.
CHINA
Chinese shares turned lower after posting early gains as investors remained cautious ahead of Agricultural Bank of China's market debut on July 15.
Shanghai’s CSI 300 Index slid 4.56 points, or 0.2%, to 2,575.92
Bank of China lost 0.3% and China Construction Bank fell 0.6% in Shanghai. But China Merchants Bank outperformed its peers, rising 0.5% after releasing an upbeat profit guidance, saying its first-half net profit would likely rise more than 50% from the previous year. CMB shares rose 1.4% in Hong Kong.
Elsewhere;
Singapore’s Straits Times Index gained 36.12 points, or 1.3%, to 2,897.15
Korea’s Kospi index moved higher 22.99 points, or 1.4%, to 1,698.64
Taiwan’s Taiex Index leaped 74.39 points, or 1%, to 7,608.85
New Zealand’s NZX index added 22.20 points, or 0.8%, to 2,983.93
Australia’s S&P/ASX 200 stepped forward 102.10 points, or 2.4%, to 4,356.70
