By V. Phani Kumar, MarketWatch , Shri Navaratnam and John Phillips
HONG KONG (MarketWatch) — Asian markets ended higher Wednesday on solid Wall Street gains, and as investors looked beyond the ongoing unrest in Egypt.
Japan stocks were buoyed by advances in exporters and resource-sector shares, although a rise in Sydney was capped by a drop in insurance and transport companies as a severe cyclone approached Queensland state.
The Nikkei Stock Average (JP:NI225 10,457, +182.86, +1.78%) climbed 1.8% in Tokyo for its best percentage gain since early December, Australia’s S&P/ASX 200 (AU:XJO 4,797, +44.40, +0.93%) added 0.9% and Hong Kong’s Hang Seng index (HK:HANGSENG 23,909, +426.01, +1.81%) finished the day up 1.8%. India’s Sensex (XX:SENSEX 18,091, +68.40, +0.38%) rose 1.3% in afternoon trade.
Stock markets in South Korea, China, Taiwan and Vietnam were closed for the Lunar New Year holidays this week, while those in Hong Kong were open for a half-day.
The region-wide rally came as regional sentiment got a fillip after the Dow Jones Industrial Average closed above the 12,000 mark for the first time in two-and-a-half years Tuesday, buoyed by encouraging earnings and manufacturing data.
Receding worries about the unrest in Egypt also helped underpin demand for riskier assets. However, investors continued to watch the unfolding situation there. Egyptian President Hosni Mubarak’s announcement he will step down from power after his term expires this fall did little to appease a crowd of demonstrators in Cairo’s Tahrir Square, who were calling for Mubarak’s long rein to end immediately. See story on Egypt.
“There’s been a global alignment in terms of positive economic data and also some good corporate reporting out of the U.S.,” said Macquarie Private Wealth client adviser Marcus Droga in Sydney. “Obviously the Middle East is still a potential concern, but that’s cooled for the time being.”
Dow Jones Industrial Average (DJIA 12,040, +148.23, +1.25%) futures were up eight points in screen trade.
Japan shares followed the upbeat trend set by U.S. markets, with auto makers underpinning broad-based gains.
Toyota Motor Corp. (JP:7203 3,480, +110.00, +3.26%) (TM 83.29, +1.11, +1.35%) rose 3.3% and Nissan Motor Co. (NSANY 20.61, +0.26, +1.28%) (JP:7201 863.00, +26.00, +3.11%) jumped 3.1% after the companies reported solid U.S. auto sales for January.
Casio Computer Co. (JP:6952 659.00, +41.00, +6.63%) (CSIOY 76.12, 0.00, 0.00%) soared 6.6% after saying Tuesday it had swung to a group net profit in the April-December period, as margins improved due to cost cuts and on a restructuring in its mobile-phone-handset business.
NTT Data Corp. (JP:9613 288,900, +18,200, +6.72%) (NTDTY 46.00, +1.50, +3.37%) climbed 6.7% after reporting strong profit growth on Tuesday.
Firm metal prices boosted several resource-sector stocks, with Sumitomo Metal Mining Co. (STMNF 0.00, 0.00, 0.00%) (JP:5713 1,409, +44.00, +3.22%) rising 3.2% and Pacific Metals Co. (JP:5541 724.00, +14.00, +1.97%) edging 2% higher.
Sterlite Industries India (IN:500900 168.50, +3.50, +2.12%) (SLT 14.72, +0.27, +1.87%) climbed 2.9% in Mumbai after Citigroup upgraded the stock to buy, citing good value after its recent underperformance.
Elsewhere, BHP Billiton (BHP 91.45, +2.42, +2.72%) (AU:BHP 45.70, +1.08, +2.42%) climbed 2.4% and Rio Tinto (RIO 71.23, +1.75, +2.52%) (AU:RIO 85.82, +1.71, +2.03%) added 2% in Sydney and Jiangxi Copper Co. (HK:358 25.75, +0.85, +3.41%) (JIXAY 128.83, +2.98, +2.37%) jumped 3.4% in Hong Kong.
