Asian stocks gained solidly Wednesday, as investors bought up financials, shippers and resource shares, while a relatively weak yen provided an extra lift in Japan.
The largest markets of the region were showing strong gains, with Japan’s Nikkei Stock Average up 1.4%, building on an identical 1.4% increase Tuesday, and Hong Kong’s Hang Seng Index climbing 0.9%.
Likewise, South Korea’s Kospi advanced 0.8%, and Australia’s S&P/ASX 200 index climbed 0.9%, though the Shanghai Composite Index traded up a milder 0.1%.
Asia stock markets briefly retreated from their highest levels of the day, while U.S. stock futures were mildly lower, amid some early indications that President Barack Obama won the second debate held late Tuesday in the run-up to the presidential election on Nov. 6. Read full story on the second debate.
Jerry Webman, chief economist at OppenheimerFunds, said after the debate wrapped up: “I think many market participants will continue to prefer Gov. Romney — they have concerns about taxes on capital, about regulation, and market might read [an Obama win] less favorably.” Read more about the debate.
U.S. stocks put in a upbeat performance Tuesday on data, earnings and ongoing optimism that Europe will find a way out of its debt troubles. Read more on Dow scores biggest gain since mid-September.
“Investors are hoping that policy makers around the world will succeed in reducing market risks and gradually turning the global economy around,” said Dariusz Kowalczyk, strategist at Credit Agricole.
The Nikkei reported that Japanese Prime Minister Yoshihiko Noda will likely call an emergency cabinet meeting Wednesday to discuss stimulus measures for the Japanese economy.
The dollar traded at 78.68 yen, down slightly from ¥78.91 in late action Tuesday, but holding onto gains for October, a month that has so far seen the dollar rise 0.9% against the yen, according to FactSet.
At the same time, the euro rose to a one-month high against the yen after reports Tuesday that Spain was considering applying for a credit line from the European Union’s bailout fund, and after Moody’s Investors Service affirmed Spain’s sovereign rating at Baa3. Read more on Moody’s action on Spain.
In that currency environment, exporters trading higher on Wednesday included Sony Corp. , up 2.8%, Panasonic Corp. up 2.9% and Toyota Corp. up 2.1%.
Suzuki Motor Corp. rose 2.4% after its Indian joint venture Maruti Suzuki India Ltd. . introduced an upgraded model of its popular Alto car.
With Europe concerns easing a bit, financials also gained in Tokyo, as Nomura Holdings Inc. advanced 3.3%, and Matsui Securities Co. climbed 2.1%.
It was a similar story in Hong Kong, with Europe-exposed market heavyweight HSBC Holdings PLC up 1.6%.
The gains extended to some Chinese banking names, with Industrial & Commercial Bank of China Ltd. rising 1.4% and China Construction Bank Corp. adding 1.6%.
Port operators, tied to global trade, were also higher in Hong Kong, with Cosco Pacific Ltd. up 3.8% and China Merchants Holdings International Co. advancing 4.4%.
Many South Korean shipping firms also saw strong gains, with STX Pan Ocean Co. jumping 7.2% and Hanjin Shipping Co. improving by 4.3%.
Growth-sensitive resource firms performed strongly in Australia, with Rio Tinto Ltd. up 1.7% and Fortescue Metals Group Ltd. ahead by 5.7%. Each posted production reports a day earlier.
South Korea made similar resource-share gains, as SK Innovation Co. advanced 3.6%, while S-Oil Corp. rose 3.8%.
In Hong Kong, Aluminum Corp. of China Ltd. , or Chalco, gained 3%, while Jiangxi Copper Co. rose 2.7%.
Gains for the firms were less pronounced in Shanghai, however, with Chalco up 0.6% while Jiangxi Copper advanced 0.3%.
But property firms lost ground on the Chinese mainland, with Poly Real Estate Group Co. down 0.9%.
In Tokyo, Softbank Corp. rose another 4.2%, adding to a 9.6% surge a day earlier, and paring losses made since late last week to just over 14%, as investors reassessed the telecom’s planned purchase of a controlling stake in Sprint Nextel Corp. .
Marketwatch
