Asian shares mostly advanced Tuesday, snapping out of a series of recent declines and reversing some of Monday’s steep losses, amid hopes that policy makers would step in to stem growing concerns about the global economy.
South Korea’s Kospi (KR:SEU) +1.05% climbed 1.1%, Japan’s Nikkei Stock Average (JP:100000018) +1.04% advanced 1% and Hong Kong’s Hang Seng Index (HK:HIS) +0.40% climbed 0.4%. Australia’s S&P/ASX 200 index (AU:XJO) +1.47% ranked among the day’s best performers, rallying 1.5%. Each of the four benchmarks ended a four-session losing streak.
The gains in Sydney came after the Reserve Bank of Australia cut its key cash rate by a quarter percentage point to 3.5%, citing modest domestic economic growth and an more uncertain international environment.
“This cut was almost solely driven by the recent deterioration in global growth/credit conditions. This suggests that further cuts are likely,” said Su-Lin Ong, strategist at RBC Capital Markets.
Elsewhere in the region, China’s Shanghai Composite index (CN:000001) +0.15% ended 0.2% and Taiwan’s Taiex (XX:Y9999) +1.53% climbed 1.5%.
The broad gains came amid optimism that European policy makers would act to help ease the region’s debt problems, amid news that finance ministers and central-bank governors from the Group of Seven major economies will hold an emergency conference call later Tuesday to discuss the euro-zone crisis.
Strategists at BNP Paribas said that “any hint of coordinated action to deal with Europe will keep risk supported.”
Meanwhile, Olli Rehn, the European Commission chief for economic and monetary affairs, reportedly said officials have considered the idea of directly recapitalizing euro-zone banks, and that discussions were moving forward on creating a banking union.
Exporters were among the many beaten-down Asian stocks that rebounded during the session.
Tokyo-listed electronics and technology firms traded higher as well, with Fujitsu Ltd. (JP:6702) +5.52% FJTSY +1.30% jumped 5.5%, and Sony Corp. (JP:6758) +3.31% SNE +1.11% rose 3.3%.
Canon Inc. (JP:7751) +3.39% CAJFF -4.14% climbed 3.4% after the firm said that it would buy back up to 50 billion yen ($640 million) of its outstanding shares.
In South Korea, LG Electronics Inc. (KR:066570) -3.75% climbed 4.7% and Samsung Electronics Co. SSNLF -0.30% gained 0.6% in Seoul, while Asustek Computer Inc. rose 3.6% and Nanya Technology Corp. climbed 6.8% in Taipei.
Some energy stocks also bounced back as Nymex crude-oil futures moved toward $85 a barrel in electronic trading.
Woodside Petroleum Ltd. (AU:WPL) +3.76% WOPEF -2.76% rose 3.8% and Beach Energy Ltd. (AU:BPT) +10.11% BEPTF -7.27% soared 10.1% in Sydney, and Inpex Corp. (JP:1605) +2.48% IPXHY +0.66% added 2.5% in Tokyo.
Shares of Wharf Holdings Ltd. HK:4 +1.53% WARFF -0.19% jumped 1.5% on news that the diversified conglomerate had accepted the Hong Kong government’s terms for renewal of a lease on a container terminal.
Ranking among decliners, shares of Fast Retailing Co. (JP:9983) -8.80% FRCOF +1.37% tumbled 8.8% in Tokyo after the firm reported that domestic same-store sales for its Uniqlo casual-clothes chain fell 10.3% compared to the year-ago period.
Qantas Airways Ltd. (AU:QAN) -18.66% QUBSF -3.42% fell to an all-time low of 1.15 Australian dollars ($1.13) before recovering a cent to finish at A$1.16, down 18.7% from the previous day’s close. The slump came after the airline warned its annual pre-tax underlying profit could fall as much as 90% amid weakness at its international division.
This news has been reported by Market Watch.
