MW: Asian markets end with small gains on Greece-rescue hopes
By V. Phani Kumar, Shri Navaratnam & Leslie Shaffer
HONG KONG (MarketWatch) -- Major Asian markets advanced Wednesday as hopes for a rescue package for Greece improved appetite for risk and drove resources and shipping stocks higher across the region.
But stock gains in many markets were slight as investors remained cautious.
"We still don't know exactly what the rescue plans would look like and which countries will be covered," said Mizuho Securities market analyst Yukio Takahashi, adding that investors are awaiting a meeting of the European Union's top officials Thursday.
Germany was considering a plan with its E.U. partners to offer Greece and other troubled euro-zone members loan guarantees. The goal: to calm fears of a government default and prevent a widening of the credit woes in the euro zone, people familiar with the matter said. Read full story.
Japan's Nikkei 225 ended up 0.3%, Australia's S&P/ASX 200 gained 0.2%, South Korea's Kospi ended flat, Hong Kong's Hang Seng Index added 0.7%, China's Shanghai Composite rose 1.1% and Taiwan's Taiex climbed 1.1%.
In afternoon trading, India's Sensex advanced 0.3% and the Straits Times Index slipped 0.1% in Singapore. Dow Jones Industrial Average (INDU 10,059, +150.25, +1.52%) futures were up 2 points in screen trade.
Shipping and resources stocks advanced across markets, underpinned by gains in commodities Tuesday as well as strong gains on Wall Street.
China Shipping Container Lines (HK:2866 2.99, +0.13, +4.55%) jumped 4.6% in Hong Kong, Korea Line advanced 1.6%, and Yang Ming Marine gained 1.6% in Taipei.
Among commodity stocks, Rio Tinto (RTP 200.28, +12.70, +6.77%) (AU:RIO 67.94, +0.95, +1.42%) tacked on 1.4% and Newcrest Mining (AU:NCM 31.81, +0.36, +1.14%) (NCMG.Y 28.10, +1.00, +3.69%) rose 1.1% in Sydney.
Hong Kong-listed shares of Jiangxi Copper (JIXA.Y 78.96, +3.56, +4.72%) (HK:358 15.44, +0.40, +2.66%) added 2.7% and Japan's Inpex (JP:1605 656,000, -3,000, -0.46%) climbed 1.4%.
Shares of BHP Billiton (BHP 71.16, +3.26, +4.80%) (AU:BHP 39.88, +0.03, +0.08%) rose sharply during the session after it reported earnings for the six months ended Dec. 31 more than doubled. But the stock retraced much of the early gains after the miner sounded a note of caution on the short-term outlook for commodities demand. It ended 0.1% higher.
Shares of Boral (BOAL.Y 19.50, +0.60, +3.17%) (AU:BLD 5.71, +0.24, +4.39%) jumped 4.4% after a stronger-than-expected first-half net income.
In Tokyo, Honda Motor (HMC 34.52, +0.71, +2.10%) (JP:7267 3,060, +25.00, +0.82%) dropped 1.6% on news the company has expanded its vehicle recall to include more than 900,000 vehicles world-wide due to fix any possible malfunctioning of airbags.
Nissan Motor (NSAN.Y 17.00, +1.20, +7.59%) (JP:7201 731.00, +17.00, +2.38%) climbed 1.6% after its Tuesday announcement that it raised its profit and revenue forecast for the financial year ending March 31. The company said it expects to post a profit compared with a previously projected loss.
