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| A Tokyo businessman watches Nikkei stocks as seen on an electronic indicator in Tokyo. Major banks advanced yesterday, led by Sumitomo Mitsui Financial Group, which rose 3.5%, and Mizuho Financial Group, which tacked on 3.2% |
The day’s gains came despite Tuesday’s weakness on Wall Street, and were aided by higher US index futures and the US dollar’s weakness, which analysts often view as a signal of improved investor sentiment.
“Global markets aren’t really getting off the canvas,” said MarketsPlus head of sales trading Scott Johnson. “Greece still seems to be the bad smell hanging around and that certainly put a dampener on European and US markets overnight. I think people are on the sidelines because they think maybe there is some more bad news to come out and they don’t see much upside at the moment.”
Japan’s Nikkei Stock Average rose 1.0% to 9662.08, South Korea’s Kospi added 1.6% to 2135.78 and Australia’s S&P/ASX 200 gained 0.2% to 4693.70. China’s Shanghai Composite advanced 0.7% to 2872.77, while Hong Kong’s Hang Seng Index climbed 0.5% to 23,011.14.
Among other markets, Singapore Straits Times Index added 0.2%, Indonesian shares gained 1.1%, New Zealand’s NZX-50 ended little changed, Philippine stocks rose 1.0% and Taiwan’s Taiex added 0.7%.
In Tokyo, major banks advanced, led by Sumitomo Mitsui Financial Group Inc, which rose 3.5%, and Mizuho Financial Group Inc, which tacked on 3.2%, recouping some recent steep losses on concerns the government could ask them to accept waivers on loans to embattled Tokyo Electric Power.
Mizuho may have also benefited from news it is considering making sweeping restructuring moves, include merging its retail and wholesale units and reshuffling management positions.
Semiconductor-related firms outperformed, with Elpida Memory and Tokyo Electron closing up 2.4% and up 1.2% respectively after US computer maker Dell issued stellar earnings and a bright forecast.
“Dell’s outstanding numbers blew away investors’ fears that consumer spending is slowing down globally, especially after the March 11 disaster in Japan,” said Tatsunori Kawai, chief strategist at kabu.com Securities.
Some resource sector stocks gained as commodities priced in the US dollar gained in Asian trading hours on the greenback’s weakness against major currencies. The US dollar index, which measures the greenback’s performance against six major global currencies, was recently 0.2% lower at 75.26.
Shares of Inpex Corp rose 3.0% in Tokyo; BHP Billiton Ltd added 0.3% and Santos Ltd rose 1.3% in Sydney; PetroChina Co rose 1.0% and Jiangxi Copper Co rose 2.1% in Hong Kong.
Gains in Sydney were capped as some banks retreated or pared gains after Moody’s downgraded the debt ratings of the country’s four major banks.
Moody’s said Australia’s banks have relatively high levels of wholesale funding and that the downgrade reflects the banking system’s structural sensitivities to wholesale funding markets.