By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) -- Chinese stocks jumped to lead gains for
Asia markets Wednesday, with the Shanghai bourse rallying off a
four-year low as investors picked up financial and property
stocks.
The Shanghai Composite Index surged 3% after recent losses,
while Hong Kong's Hang Seng Index advanced 1.5%.
Gains were more moderate in other markets, with Japan's Nikkei
Stock Average finishing 0.4% higher, and South Korea's Kospi adding
0.7%, while Singapore's Straits Times Index and Australia's
S&P/ASX 200 index rose 0.4% apiece.
U.S. stocks dampened early sentiment in Asia with a lower finish
Tuesday, as political leaders wrangled over fiscal-cliff budget
talks to avert steep tax hikes and spending cuts that could push
the U.S. economy into recession.
But Chinese share markets ignored the weak offshore lead to post
sharp gains Wednesday.
Linus Yip, strategist at First Shanghai Securities said: "I
don't see any sparkling news, but we all know the Shanghai index is
already at four-year lows amid a lack of market confidence, so I
think it's a technical rebound."
"Hong Kong is following the rebound in Shanghai," Yip added.
News out late Tuesday of the Hong Kong Monetary Authority's latest
market intervention to curb the strength of the Hong Kong dollar
also likely helped confidence in Hong Kong, he said, as "it's a
signal that funds are coming into the market."
Meanwhile, HSBC's Chinese economics team said comments from a
meeting of China's new leaders Tuesday implied that supportive
economic policy would remain in place in China over coming
quarters.
The meeting, the first official assessment of the Chinese
economy following November's leadership handover, saw leaders call
for policy continuity and stability, the economists noted.
"Both monetary and fiscal policies are likely to stay
accommodative to help China strengthen domestic demand and tackle
external challenges," the economists said.
The leaders also indicated confidence about meeting 2012
economic and social development goals, they said.
Amid the broad-based gains for Chinese shares, insurance
companies outperformed with Ping An Insurance Group Co. (PNGAY)
rising 5.1% in Hong Kong after HSBC Holdings PLC (HBC) closed its
stake-sale in the insurer, removing an overhang of shares.
Ping An's Shanghai shares , jumped 3.9%, with rival China Life
Insurance Co. (LFC) up 2.9%.
"Banks and insurance stocks are doing well as they are big-cap
stocks and tend to move with the market," said First Shanghai
Securities' Yip.
Banks gaining ground in Hong Kong included HSBC, up 1.3%, while
China Merchants Bank Co. (600036.SH) rose 2.4%, and Bank of East
Asia Ltd. (BKEAF) climbed 2.9% after a Nikkei report that it's
planning a share sale to Japan's Sumitomo Mitsui Banking Corp.
Mainland Chinese property developers also stood out in Hong
Kong, with China Resources Land Ltd. (CRBJF), up 3.5%, while Hong
Kong's Wharf Holdings Ltd. (WARFF) gained 3.9%.
On the Chinese mainland, real-estate major China Vanke Co. rose
3.2% in Shenzhen after its November sales doubled in November to
17.13 billion yuan ($2.75 billion) compared to a year ago.
Vanke rival Gemdale Corp. advanced 5.1% in Shanghai.
Over in Tokyo, Fast Retailing Co. (FRCOY) advanced 3% after the
market heavyweight reported late Tuesday that November same-store
sales in Japan for its Uniqlo casual clothing chain rose 13.7%.
Consumer-electronics firm Sharp Corp. (SHCAF) jumped 4% after it
announced an investment of up to $120 million from Qualcomm
Inc.
However, losses for some tech and industrial firms worked to
curb upside for the Japanese market, as Fujitsu Ltd. (FJTSY) gave
up 1.9%, and Renesas Electronics Corp. (RNECY) retreated 1.4%.
(QCOM)Technology firms saw some gains in Korea, however, with
heavyweight Samsung Electronics Co. (SSNLF) up 1.5%, SK Hynix Inc.
(HXSCL) ahead by 1.4%, and LG Display Co. gaining 2.6%.
Banks moved higher in Australia after Tuesday's interest rate
cut, with Commonwealth Bank of Australia. (CBAUY) up 1% and Westpac
Banking Corp. (WBK) rising 0.6%.
National Australia Bank Ltd. (NAUBF) improved by 0.3% after it
said it would pass on 20 basis points of the Reserve Bank of
Australia's 25 basis point cut made Tuesday to its customers, the
first of the major banks to do so.
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