HONG KONG (MarketWatch) -- Asian stocks were higher Thursday, with merger activity in the resource sector helping to boost commodity-related shares, and as investors assessed the impact of large interest-rate cuts in New Zealand and Thailand.
Shares of Nippon Oil and Nippon Mining Holdings jumped 10% and 12.9% after the firms said they were in merger talks, in what reportedly would create the world's eighth-largest oil company.
Rio Tinto's shares failed to catch any upside draft, falling more than 10%, as investors reportedly fretted the miner will need to sell additional shares to shore up its balance sheet and lower gearing.
Stocks traded in Shanghai led the region higher as investors were heartened by indications from Beijing Wednesday that it's ready to use additional stimulus measures to offset downward pressure on the economy, including changes in required reserves, interest rates and the exchange rate of the yuan, the Chinese currency. The leading Shanghai Composite share benchmark was up 3.5% to 2,033.61.
"There are a lot of other measures to be introduced shortly," said Alex Tang, head of research at Core Pacific-Yamaichi in Hong Kong. He added that this round of stimulus will focus on extending credit to consumers and small businesses, unlike Beijing's earlier plan which directed spending at infrastructure projects.
Financial shares were among the top performers in Hong Kong, as investors judged the sector a likely winner from the new plan, which includes measures to stabilize the stock market and pump liquidity into the banking system. Shares of Industrial & Commercial Bank of China were up 2.3%, and China Life Insurance (TICKER:HK:2628) climbed 4%.
Thailand's central bank slashed interest rates by larger-than-expected 1% Wednesday. Monetary authorities in Wellington followed early Thursday with a bazooka-sized 1.5% rate cut that lowers the official cash rate to 5%, a five-year low. Indonesia's central bank is due to release its decision on interest rates later in the day.
The Nikkei 225, Japan's leading share benchmark (JP:1804610: news, chart, profile) fell 0.4% to 7,972.58 in afternoon trade. The Hang Seng Index was up1.5% to 13,790.25, the China Enterprises Index, a gauge of Hong Kong-listed China shares, was up 2.1%, and Australia's S&P/ASX 200 added 0.8% to 3,560.10. The Thai SET Index was up 0.6% and Indonesia's JSX Composite added 1.7%.
The U.S. dollar edged higher against the yen, to trade at 93.37 late morning in Tokyo, advancing from the upper-92-yen-level in late Asian trade Wednesday.
Investors also took inspiration from the action on Wall Street overnight, where the Dow Jones Industrial Average ended higher, helped by a last session burst, during a day that saw the release of data pointing to a rebound in mortgage refinancings and reports the Treasury is considering a plan that would lower mortgage rates. The Dow added 172.6 points, or 2.1%, finishing at 8,591.69.
Shares of Sanyo Electric (JP:6764: news, chart, profile) were down 12.4% after the Nikkei newspaper reported Panasonic Corp. (JP:6752: news, chart, profile) had raised its buyout offer per share by less than 10%. Panasonic's shares were down 1.2%
Gainers in Sydney included investment advisory Babcock & Brown (AU:BNB: news, chart, profile) , shares of which jumped 88% after the firm secured A$150 million in financing for a year, as it proceeds with restructuring.
Light sweet crude oil futures for January fell as much as 25 cents to $46.64 a barrel in electronic trade. The front-month contract ended at a nearly four-year low of $46.79 a barrel on the Nymex Wednesday, easing 17 cents in a retreat for the fourth straight session.
Among other regional indexes, the South Korean Kospi was up 0.4% to 1,027.64, New Zealand's NZSX-50 up 0.6% at 2,719.71, Taiwan's Taiex fell 0.7% and Singapore's Straits Times was up 2%.
In other U.S. trade Wednesday, the S&P 500 index ($SPX:
870.74, +21.93, +2.6%) climbed 21.93 points, or 2.6%, to 870.74, with financials, consumer discretionary and information technology leading sector gains. The Nasdaq Composite ($COMPQ:
1,492.38, +42.58, +2.9%) advanced 42.58 points, or 2.9%, to 1,492.38.
