Most Asian stocks rose as Chinese equities jumped amid buying of underperforming shares while Japan’s Topix index gained on a weaker yen.
A gauge of China financial companies soared 4.5 percent from its lowest level in six weeks as Huatai Securities Co. and Changjiang Securities Co. climbed by the 10 percent daily limit. Sony Corp. added 1.5 percent in Tokyo as makers of electric appliances contributed the most to the Topix’s advance. Hanwha Chemical Corp. soared 14 percent in South Korea, leading gains on the regional benchmark index on optimism about its earnings.
The MSCI Asia Pacific Index climbed 0.2 percent to 153.65 as of 5:34 p.m. in Tokyo. The Shanghai Composite Index surged 3.1 percent, capping its biggest gain since Jan. 21 after two days of losses. Twenty companies are scheduled to sell IPO shares from Tuesday to Thursday, which may freeze 2.8 trillion yuan ($451.1 billion). Japan’s Topix added 0.4 percent after the yen fell 0.6 percent against the dollar on Monday.
Chinese “investors that got allocations for new IPOs will hold, but those who didn’t get as much as they wanted will deploy excess funds to stocks that have underperformed,” said Gerry Alfonso, a trader at Shenwan Hongyuan Group Co. in Shanghai, the second-largest listed mainland brokerage. “If an investor doesn’t want to take too much risk, they will park their funds into large caps and try again when there are new IPOs.”
Australia’s S&P/ASX 200 Index slid 0.8 percent and South Korea’s Kospi index increased 0.3 percent. Hanwha Chemical jumped 14 percent to 18,950 won. Investors may be optimistic about its second-quarter earnings outlook, Kiwoom Securities analyst Kim Sang Ku said. New Zealand’s NZX 50 Index slipped 0.3 percent.
Hong Kong, U.S.
Hong Kong’s Hang Seng Index advanced 0.4 percent, while the Hang Seng China Enterprises Index gained 1.9 percent.
E-mini futures on the S&P 500 climbed 0.3 percent today. The Standard & Poor’s 500 Index and the Dow Jones Industrial Average both closed Monday at all-time highs.
Data Monday showed confidence among U.S. homebuilders unexpectedly fell in May, reflecting a cooling off in sales and slower buyer traffic. Mixed economic data from retail sales to the labor market have bolstered speculation the Fed will be in no rush to raise rates. Fed Bank of Chicago President Charles Evans repeated his call for rates to be held near zero until early 2016 at a speech in Stockholm on Monday.
In Europe, the Stoxx 600 Index rose 1.5 percent today and the euro slid as a European Central Bank official said the lender is accelerating asset purchases before summer.