Japan Leads Asian Rally

Ivaylo
22 Nov, 2006
New York City

Asian markets advanced Wednesday, with the Nikkei 225 in Japan closing higher as investors bought in Mitsubishi UFJ Financial Group, Softbank Inc. and other large-caps that were heavily sold earlier in the week, while a recovery in oil prices lifted a commodity-focused Australian index. The benchmark for China stocks in Hong Kong, the China Enterprises Index, surged, led by gains in property and banking shares.

[R]7:30AM Asian stocks surged Wednesday, led by Japanese financials.[/R]
Asian markets finished higher on Wednesday. Tokyo''s 225-issue Nikkei Stock Average gained 180.09 points, or 1.1%, to 15,914.23. shares of Internet and telecom conglomerate Softbank jumped 8.4%, its first gain in six trading sessions. Shares of Mitsubishi UFJ , the largest bank in Japan by assets, rose 2.2% while lender Mizuho Financial Group advanced 2%. Department store group Mitsukoshi Ltd rose 3.4% while Fast Retailing operator of the Uniqlo retail chain, gained 1.5%.

The Hang Seng Index in Hong Kong rose 1.3% to end at 19,250.79. Hong Kong property developer Cheung Kong Holdings rose 2.9%. the China Enterprises Index, surged 3.4% to end 8,610.04, led by gains in property and banking shares. Mainland lender China Construction Bank rose 5.1% while China''s largest lending by assets Industrial & Commercial Bank of China.

Australia S&P/ASX 200 rose 1.6%, led higher by gains in BHP Billiton. The largest mining group in the world rose 2.9%, pacing gains in copper and petroleum prices. Elsewhere in Asia, Singapore Straits Times Index added 0.8%, Malaysia KLSE Composite rose 0.9%, and New Zealand NZX-50 Index closed 0.1% lower. Kospi in South Korea added 1.2% and Indonesia JSX Composite gained 1.1%. Shares listed in Shanghai wiped off earlier losses to trade higher in the afternoon, lifting the Shanghai Composite 0.2%.