Asian markets rallied into the weekend Friday as positive leads from Wall Street prompted buying in commodity-linked and exporter shares. South Korean stocks shrugged off a surprise interest rate hike by the central bank to advance, while Japanese shares climbed in spite of hefty losses in Inpex Corp. after it announced capital-raising plans.
Japan’s Nikkei 225 average jumped 49.58 points, or 0.5%, to 9,585.32
Hong Kong’s Hang Seng Index darted 328.10 points, or 1.6%, higher to 20, 378.66
South Korean shares shook off initial volatility after the Bank of Korea surprised markets by raising its key policy rate by a quarter-point to 2.25%, its first tightening since August 2008, to address the threat of inflation and curb rising household credit.
The U.S. dollar fell to a two-week low of 1,196.7 won from 1,209.3 won late Thursday in Seoul, before recovering to 1,207.5 won.
BOK Governor Kim Choong-soo said this isn't the time to adopt a restrictive stance, but inflationary pressures will likely continue growing in the coming months.
The rate increase buoyed financial sector stocks, with Hana Financial Group adding 5.5%, KB Financial Group gaining 4.4% and Shinhan Financial Group 2.5% higher.
The Tokyo market advanced, overcoming worries about capital-raising plans and uncertainty ahead of Sunday's Upper House elections, with Japanese newspapers predicting a rough ride for the ruling Democratic Party of Japan.
Inpex Corp. plummeted 12.8% amid heavy trading volumes on concern about a massive equity dilution after the oil and gas producer said it is aiming to raise about $6 billion U.S. Inpex plans to use the proceeds of the new share issue to fund development of its flagship Ichthys gas development project in Australia.
But exporters helped the market rise after the euro strengthened against the yen on Thursday.
Sony Corp. added 0.9% and Canon Inc. tacked on 1%.
Some analysts were however skeptical the gains in exporters could continue. Yoshihiro Okumura, general manager at Chibagin Asset Management, said further gains in euro-sensitive shares were likely to be limited as European economies remain weak.
Commodity-linked shares were broadly higher, with trading house Mitsubishi Corp. gaining 1.1% and Marubeni Corp. rising 0.4% in Tokyo, Rio Tinto rising 1.6% in Sydney, Aluminum Corp. of China advancing 2% and Cnooc climbing 1.2% in Hong Kong.
In Sydney, Santos jumped 9.7% after the Australian Financial Review reported the company was in talks with Royal Dutch Shell about Shell taking a 30% to 35% stake in the Santos-led Gladstone liquefied natural gas project.
In response, Santos said Friday that "detailed ongoing" discussions were under way with a number of parties over transactions linked to the Gladstone project. "These discussions are incomplete and there is no certainty that definitive agreements will be executed," it said.
Origin Energy which has a Gladstone project joint venture with ConocoPhillips, added 2.8% on the Santos developments.
Hong Kong-listed Li & Fung jumped 6.3% after the consumer goods trading firm, which sources products for U.S. clients such as Wal-Mart Stores and Abercrombie & Fitch, said Thursday it had signed seven deals, including three acquisitions totaling around $140 million U.S. in the past few months.
In foreign exchange markets, the euro rose as high as $1.2722 U.S. on better-than-expected U.S. data and reassuring comments from European Central Bank President Jean-Claude Trichet, before coming off those highs.
The single currency was at $1.2693 U.S., from $1.2703 U.S. late Thursday in New York, and at 112.50 yen from 112.27 yen. The dollar was fetching 88.68 yen from 88.38 yen.
Elsewhere;
Shanghai’s CSI 300 Index improved 71.18 points, or 2.8%, to 2,647.10
Singapore’s Straits Times Index gained 20.02 points, or 0.7%, to 2,917.17
Korea’s Kospi index moved higher 24.37 points, or 1.4%, to 1,723.01
Taiwan’s Taiex Index leaped 38.40 points, or 0.5%, to 7,647.25
New Zealand’s NZX index added 21.32 points, or 0.7%, to 3,005.25
Australia’s S&P/ASX 200 stepped forward 39.60 points, or 0.9%, to 4,396.30
