Asian stocks bounced back Thursday as European officials mulled solutions to fix the region’s debt crisis and fears on China’s interest rates hike were eased.
Japan\'s Nikkei advanced 1.7 percent to 9,977.20, led by insurance companies. The insurance sector gained thanks to a report that MS&AD Insurance Group Holdings Inc. (TYO:8725), which operates two business segments namely the Non-life Insurance and Related segment and the Life Insurance segment in not only domestic but also overseas markets will put a total of 300 billion yen of its shares in other companies for sales.
Hong Kong’s Hang Seng index jumped 1.4 percent to 23,530.05, spurred by financials. The Shanghai Composite index was up 0.8 percent to 2,860.41. In Korea, the Kospi advanced 1.3% to 1.921.41.
Australia\'s S&P/ASX 200 finished up 0.3 percent to 4,640.2. The indexes of Taiwan and the Philippines gained.
On the contrary, Singapore’s benchmark slumped.
China’s government announced Wednesday that it will implement price control measure on a range of energy products, foods and other staples. It would also tighten supervision of prices for items like grain, eggs, meat in both wholesale and retail markets. China’s move relieved some of the anxiety in the world markets that the world’s second largest economy would hike interest rates to dampen inflation.
That the dollar was stronger than the yen would help lift Asian markets. Exporters in the region can sell their competitive products.
However, the dollar slipped against most major rivals in Asia trading Thursday. The euro rose $1.3585. Compared to the Japanese currency, the dollar edged down modestly, trading at ¥83.19, down from ¥83.30 late Wednesday.
The Wall Street ended mixed Wednesday amid sharp decline in housing construction in the U.S. and concerns on Ireland’s search for outside help to repay the cost of rescuing the banks at the height of the country’s financial crisis. Britain offered supports to Ireland, which eased concerns on Ireland’s inability to repay its debts.
The Dow Jones industrial average dropped 0.1 percent to 11,007.88 while the technology-focused Nasdqa composite index and the broader S&P 500 index advanced, with 0.1% and 0.3% respectively.