Japan’s better-than-expected GDP data helped lift Tokyo stocks, while China investors shrugged off signs of further Beijing policy-tightening measures.
The Nikkei 225 Index regrouped 102.70 points, or 1.1%, to 9,827.51. Hong Kong’s Hang Seng Index fared not so well, however, unloading 195.40 points, or 0.8%, to 24,027.20.
Still, sentiment was cautious amid concerns of renewed European sovereign-debt problems, and China’s potential further monetary tightening was also a focus in Asia as senior officials at the People’s Bank of China called for vigilance against rising inflationary pressures.
Citi issued an upbeat report on the regional outlook, saying stocks didn’t appear overvalued on a variety of measures that historically have provided warning of excessive exuberance.
In Europe, leaders there over the weekend urged Ireland to accept a bailout from the European Union’s emergency-loan facility to help restore confidence in financial markets and avert a spread of worries to other eurozone members, even as Ireland denied it needed assistance.
The news helped to bolster the euro against the yen, and also added some impetus to exporters in Tokyo.
Among companies with relatively high exposure to Europe, Mazda Corp. added 1.4%, Canon Inc. rose 0.3% and Konica Minolta tacked on 1.6%.
Japan’s GDP figures for the July-September quarter provided another boost in Asia, as the annualized figure jumped 3.9% against the median forecast for 2.5% growth.
Analysts said the upbeat growth result is somewhat misleading. The rise in consumer spending shown in the quarterly report came in anticipation of the expiry of auto subsidies and an upcoming increase in tobacco taxes.
Banks outperformed the market early on because of stellar earnings results and full-year upward revisions from Mizuho Financial Group and Sumitomo Mitsui Financial Group. However, shares gave back most of the gains, with Mizuho ending unchanged, while SMFG ended 0.4% higher.
Australian stocks ended little changed, as takeover activity and the announcement of a buyback plan by miner BHP Billiton Ltd. helped offset weaker overseas markets.
BHP Billiton fell 0.4% after it abandoned its $39-billion U.S. bid for Canadian fertilizer company Potash Corp. of Saskatchewan and promised to return $4.2 billion U.S. to shareholders through a previously suspended buyback program.
AXA Asia-Pacific Holdings climbed 6.8% and AMP added 2.3% after AXA APH said it’s considering a new takeover proposal worth at least 13 billion Australian dollars ($12.81 billion U.S.) from French parent AXA SA and AMP.
Also in Hong Kong, Zijin Mining fell 0.8%, while Aluminum Corp. of China dropped 2.6%.
Foreign-exchange majors traded in relatively tight ranges.
The euro was at $1.3635 against the U.S. dollar, compared with $1.3693 in New York on Friday. Against the yen, the euro was at ¥112.97 after trading as high as ¥113.64, compared with ¥112.86 on Friday.
CHINA
Chinese banking stocks were generally higher after an expected tightening in reserve-ratio requirements over the weekend didn’t materialize.
Shanghai’s CSI 300 Index picked up 23.06 points, or 0.7%, to close at 3,314.89.
Local media reports Friday had said such an increase may have been in the cards. But local media also quoted People’s Bank of China officials Monday saying the country needed to adopt a more prudent monetary policy.
Industrial & Commercial Bank of China rose 6.8% in Shanghai after falling 1.9% in the previous session. The firm’s Hong Kong-traded shares fell 1.8%, however.
In other markets
Singapore’s Straits Times Index let go of 15.20 points, or 0.5%, to 3,236.80.
Korea’s Kospi Index was fairly flat, inching up 0.69 points to 1,193.81
Taiwan’s Taiex Index dumped 75.40 points, or 0.9%, to 8,240.65
New Zealand’s NZX 50 Index gained 17.64 points
The S&P/ASX 200 Index gave back 4.70 points, or 0.1%, to 4,688.
