A strong set of trade data out of the US and receding fears over the Greek sovereign debt crisis pushed Asian markets higher yesterday.
Sentiment has been lifted by a deal signed by the EU that ensures Athens pays off its enormous deficit, which has weighed on stocks and the euro for several weeks.
“The Greek debt situation seems to have calmed down for the time being and commodity markets are picking up,” Nikko Cordial senior strategist Tsuyoshi Kawata told Dow Jones Newswires. “Market sentiment may stay fairly upbeat for the rest of this week.”
Tokyo surged 2.72 percent, or 272.58 points, to 10,306.83. Shares in Toyota ended flat at ¥3,380 (US$37.32), a day after US authorities asked the world’s largest carmaker to hand over documents to prove it did not drag its feet in recalling millions of potentially defective vehicles.
Hong Kong closed up 1.31 percent, or 265.32 points, at 20,534.01 on the first trading day of the Year of the Tiger after a break for the Lunar New Year.
Chinese lenders led the blue-chip rally, unaffected by Beijing’s move to increase the amount of money financial institutions must keep in reserve, in an effort to rein in rampant lending amid fears of asset bubbles.
Bank of China rose 1.8 percent, ICBC gained 2.2 percent and Bank of Communications was 1.4 percent higher. Heavyweight HSBC was up 1.9 percent at 82.30. The People’s Bank of China said last Friday it would raise the reserve-requirement ratio for banks by half a percentage point from next Thursday, for the second increase this year. Shanghai and Taipei remain closed until Monday.
Sydney powered ahead by 2.19 percent, or 100.1 points, at 4,667.9, posting its biggest daily rise since Nov. 30.
“It was extremely positive to see the market close near session highs as it suggests a change in investor psyche and a growing confidence in the sustainability of further gains,” IG Markets research analyst Ben Potter said.
Seoul closed up 1.65 percent, or 26.38 points at 1,627.43.
Dealers took a cue from Wall Street, where the Dow Jones ended up 1.68 percent after the New York Federal Reserve Bank said manufacturing activity in the New York region expanded last month at a faster pace than expected.
The euro extended gains from the previous day as concerns over Greece eased, with the European unit up to US$1.3781 in Tokyo afternoon trade from US$1.3764 in New York late on Tuesday, and to ¥124.45 from ¥124.09. The US dollar gained to ¥90.33 from ¥90.13.
The euro last week sank to a nine-month low on the back of the debt crisis as investors became more risk averse.
Oil was higher, with New York’s main futures contract, light sweet crude for delivery in March, up US$0.34 to US$77.35 a barrel. Brent North Sea crude for April delivery was up US$0.22 to US$75.90.
In other markets, Singapore closed up 35.16 points, or 1.27 percent, at 2,794.06.
“Given that this uptrend had been accompanied with muted trading volume, we believe that this technical rebound lacks conviction,” DMG technical analyst James Lim said.
Manila closed up 1.72 percent, or 50.96 points, at 3,018.67, a sixth straight rise. Jakarta closed up 22.84 points, or 0.89 percent, at 2,581.34.
Kuala Lumpur gained 5.68 points, or 0.45 percent, to close at 1,259.07. Bangkok gained 4.76 points, or 0.69 percent, to close at 697.49. Wellington added 0.76 percent, or 23.49 points, to 3,111.10.
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