HONG KONG - Asian shares rose on Monday, boosted by mining stocks after a massive earthquake in Chile, the world's top copper producer, and on signs that Greece's debt crisis could be easing.
Asian equity markets were also buoyed by reports which showed factory activity in the region's main economies continued to expand last month, with India and South Korea growing at their fastest pace in around two years, although China's growth rate showed some signs of moderating.
Copper futures jumped to their highest in more than five weeks after a massive earthquake in Chile hit production, amid fears further supply disruptions could push the metal to a 2010 peak.
Up to a fifth of Chile's copper mine capacity was initially shut - estimated at around 4.5 million tonnes in concentrate annually ? but the top mines slowly resumed operations on Sunday despite limited power supplies.
"While it appears that a modest proportion of production has been halted, the major impact may come from the disruption on deliveries from the mines and from the disruption of power supplies to the mines," Citi analyst David Thurtell said.
Shares in Hong Kong and Shanghai ended at their highest in five weeks led by Chinese financial stocks on hopes China's loose monetary policy will stay in place, while mining shares surged as copper prices leapt.
Hong Kong stocks closed up 2.2 per cent, while those in Shanghai rose 1.2 per cent.
Top lender ICBC rose 5 per cent to end at a one-month closing high. China Construction Bank, the country's second-largest bank by assets and the most actively traded stock, rose 4 per cent as investors bought the stocks following Chairman Guo Shuqing's comment the bank has no plans to raise fresh capital.
Jiangxi Copper rose more than 7 per cent in Hong Kong, its highest in five weeks, before ending up 6 per cent. Smaller rival Xingye Copper was up 8 per cent.
Despite Monday's rise, the Chinese market has generally been weak so far this year amid worries about heavy supplies of new shares and an official clampdown on excessive bank lending.
Analysts warned against excessive optimism about the near-term trend as the supply of liquidity in the market had decreased after official quantitative tightening over the past two months.
"Supervision of bank lending has been greatly enhanced, effectively cutting off funds that flowed improperly into the market via grey-area channels," said Zheng Wengang, head of investment at Shanghai Securities.
"With less market liquidity, you cannot expect a bull run, nor a strong rally in index heavyweights," he said. "So the index should still move in a relatively narrow range."
The MSCI index of Asian shares excluding Japan rose about 1.4 per cent as risk appetite improved with mining stocks, consumer staples and financials accounting for most of the gains.
Australian stocks rose 1.1 per cent, as higher oil and metals prices propelled the resources sector, and investors, reassured by strong corporate results, flocked to banks and top supermarkets groups.
Japan's Nikkei average rose half a per cent, with metal shares such as Sumitomo Metal Mining Co climbing, and its three biggest banks, including Mitsubishi UFJ Financial Group, rising after JP Morgan upgraded the bank stocks, citing decreasing risks to their earnings.
Toyota Motor Corp fell more than a per cent, after news that a U.S. congressional panel has found evidence Toyota routinely withheld company records it should have turned over in court and settled personal injury cases to avoid revealing key engineering data dubbed the "Books of Knowledge."
Toyota President Akio Toyoda sought to ease quality concerns during a low-key visit to China, fresh from a gruelling hearing in the U.S. Congress over his company's biggest safety crisis.
"He's making this trip because China has become the biggest auto market, in which Toyota underperformed last year, from low-end products to high-end ones, such as Lexus," said IHS Global Insight analyst John Zeng. "If Toyota loses China, its global position would be challenged."
Singapore stocks rose 0.8 per cent.
Markets in India, South Korea and Thailand were closed for a holiday.
Gold prices rose as the euro recovered early losses to firm versus the dollar, with the yellow metal also benefiting from strength in other commodities such as oil and copper.
Oil extended gains to rise above US$80 a barrel, lifted by a rally in the copper price and the bullish global economic data.
European Union Economic Affairs Commissioner Olli Rehn was due in Athens for talks with Greek officials about the country's debt crisis.
Financial markets have been speculating that Rehn's visit, if successful, could move EU governments closer to announcing some form of emergency aid for Greece in exchange for a pledge by Athens to take fresh budget steps.
