Asian stocks rose as a weaker yen buoyed Japanese exporters and Chinese equities in Hong Kong rebounded. Phone companies and banks led gains.
China Resources Enterprise Ltd. jumped 56 percent in Hong Kong, the most in more than two decades, after announcing the sale of non-beer assets to its parent so it can focus on making the world’s most popular brew. China Mobile Ltd. surged 7.5 percent as more customers adopted its high-speed service. Toyota Motor Corp., which gets 75 percent of sales overseas, rose 2.2 percent in Tokyo. Mitsubishi UFJ Financial Group Inc. jumped 3.3 percent after Japan’s biggest lender was said to be among those in talks to buy financial assets from General Electric Co.
The MSCI Asia Pacific Index added 1 percent to 153.87 as of 4:02 p.m. in Hong Kong. The measure fell the most in almost a month yesterday as China’s curbs on speculative trading outweighed the central bank’s biggest cut to reserve requirements since 2008.
“With policy makers continuing to support global growth, investors continue to feel there is room to buy the dips in equities,” said Stan Shamu, Melbourne-based market strategist at IG Ltd. “Should the global economic climate not improve, policy across the globe is likely to become even more accommodative.”
The Hang Seng China Enterprises Index climbed 3 percent. The shares yesterday dropped the most since January after a regulator clamped down on the use of shadow lending for equity purchases. The Hang Seng Index rose 2.8 percent. The Shanghai Composite Index rebounded 1.8 percent from yesterday’s 1.6 percent loss.
China’s leaders at the weekend cut the amount of cash lenders must set aside as reserves by the most since the global financial crisis, just days after a report showed the slowest economic growth in six years.
Japan’s Topix index gained 1.7 percent after the yen weakened 0.6 percent this week after six days of gains. South Korea’s Kospi index and New Zealand’s NZX 50 Index fell 0.1 percent. Australia’s S&P/ASX 200 Index rose 0.7 percent.
“The Chinese authorities in the short term are trying to soften the blow,” Stephen Wood, chief market strategist at Russell Investments in New York, told Bloomberg TV. “Japan is something we’ve been looking at for a while now. You’re probably seeing Europe being the most attractive and secondarily the U.S. tied with Japan right now” among global equity markets.
The Standard & Poor’s 500 Index advanced 0.9 percent yesterday, rebounding from the worst slide in three weeks as IBM Corp. led a rally in technology shares. E-mini futures on the equity gauge climbed 0.6 percent on Tuesday.
Federal Reserve Bank of New York President William C. Dudley said he’s relatively optimistic a growth rebound will warrant raising interest rates in 2015, though he’s “not reasonably confident right now” inflation will climb.
Fed policy makers last month were split over whether they would raise rates in June or later, a debate that occurred before disappointing payroll figures for March, minutes of their most recent policy meeting showed.