Asian stock markets generally rose on Tuesday, as traders eyed overnight Wall Street gains and a decision by the People’s Bank of China to cut to reserve requirement ratio, thus increasing banker’s capacity to extend loans. Shanghai was closed on holiday, but Hong Kong rose 2.25% and Tokyo gained also. Other regional exchanges were largely up, through Singapore and Sydney lost ground.
The Nikkei 225 Tuesday gained 1.05% on Wall Street cues, the continuing outlook on the economy and corporate profits, and a softer yen, the latter regarded as a positive in export-oriented Japan.
In other news, the Bank of Japan Tankan survey released Monday underscores the nation’s tight labor market, said analysts. The jobless rate is at 2.8%, and small businesses report difficulty hiring. Businesses are expected to increase outlays for labor-saving equipment and software.
The benchmark Nikkei 225 opened higher and rose through morning and afternoon sessions, finishing up 213.29 to 20,614.07 as gaining issues outnumbered losers 194 to 23.
Leading the upside were semiconductor-test equipment maker Advantest (ATEYY, 6857:Tokyo), up 7.3%; followed by equipment- and components-maker Furukawa Electric (FUWAY, 5801:Tokyo), up 4.9%; and then utility Kansai Electric (KAEPF, 9503:Tokyo), up 4.4%.
On the downside were personal-products maker Shiseido (SSDOY, 4911:Tokyo), off 1.9%; and then camera-house Nikon (NINOY, 7731:Tokyo), off 1.0%
The Hong Kong Hang Seng Index opened the week Tuesday after a Monday holiday, and gained 2.25% on news that the mainland People’s Bank of China would ease monetary policy by cutting the reserve requirement ratio for China banks. The move could encourage bank lending, but equally importantly, shows that Sino monetary policy planners are leaning towards a more-accommodative monetary policy and economic growth, said analysts.
The broad gauge Hang Seng rose 618,91 to 28,173.21, as gaining issues outnumbered losers 44 to five.