Dow Jones Newswire/Singapore

A Japanese businessman talks on his mobile phone as he walks past a share prices board in Tokyo yesterday. Japan’s Nikkei 225 Average climbed 0.7% for the day

Asian markets ended higher yesterday, following overnight gains on Wall Street, with commodity-related stocks boosted by weakness in the US dollar.
Hong Kong’s Hang Seng Index jumped 1.6% and Japan’s Nikkei 225 Average climbed 0.7%, while China’s Shanghai Composite added 0.3%, taking its winning run to a sixth straight session. Australia’s S&P/ASX 200 climbed 1.9% and South Korea’s Kospi advanced 1.3%.
“It is reasonable that markets should rise because major central bankers have already given strong hints that the low interest rate environment will be maintained for a period of time,” said Ben Kwong, chief operating officer at KGI Asia. “The US dollar is under pressure and it’s quite obvious that its weakness is driving the commodity and equity markets.”
Commodity shares performed strongly, with Rio Tinto climbing 3.9%, BHP Billiton rising 2.6% and Sino Gold Mining adding 2.1% in the resources-laden Sydney stock market. Jiangxi Copper gained 2.6% and Shandong Gold-Mining rose 1.7% in Shanghai, with energy producer Cnooc jumping 3.4%.
Marine transportation stocks also climbed following recent improvement in freight rates. China Cosco Holdings gained 2.1% in Hong Kong and 1.1% in Shanghai, Neptune Orient Lines advanced 2.6% in Singapore and Hanjin Shipping Co added 1.2% in Seoul.
“My suggestion to clients is that, unless US stocks are on a more stable path, they should sell on rallies,” said David Li, trader at Daiwa Securities SMBC-Cathay in Taiwan.
Several financial stocks advanced in the region, tracking their US peers, with Commonwealth Bank of Australia rising 1.7% Westpac Banking Group gaining 2.6% in Sydney, KB Financial adding 1.7% in Seoul and Bank of Communications gaining 2.5% in Hong Kong.
In Tokyo, however, financial stocks lagged the market after a Nikkei report on the possibility of regulators imposing tighter global banking regulations sparked concerns about capital raising. Mizuho Financial Group fell 1.1% and Shinsei Bank lost 2.5%.
Still, gains in some exporters helped the Nikkei 225 finish higher. Electronics maker NEC Corp was a bright spot, jumping 10.1% in strong volume following news of capital raising.
Toyota Motor advanced in early trade after announcing better-than-expected earnings and lifting its forecasts, but ended 1.7% lower on the yen’s strength. Elpida finished up 1.8%, but well off its highs as well, on news it had signed a pact with Taiwan’s ProMOS Technologies to outsource production of memory chips. ProMOS surged 6.3% higher in Taipei.
Ssangyong Motor was a standout in Seoul, jumping 14.9% before a court ruling on the company’s proposed restructuring plan.
Among other regional markets, Singapore’s Straits Times Index added 1.2%, Indonesian shares gained 1.3% and Thailand’s SET Index climbed 2.1% in afternoon trading. Earlier in the day, New Zealand’s NZX 50 gained 0.5% while Philippine shares dropped 0.4%.
Shares of Manila Electric Co slumped 12.2% after First Philippine Holdings Corp on Thursday decided to sell just half of its remaining 13.4% stake in Meralco to Metro Pacific Investments Corp, forsaking an offer from Triratna Holdings Corp to buy the entire stake. The drop was “obviously, a sell-on-news phenomenon after the winner of the bidding war is known,” said Erwin Balita, research head of SB Equities in Manila.