HONG KONG, CHINA - Asian shares surged Wednesday on hopes fresh stimulus measures from China and Japan will help the regional powerhouses battle the global downturn as markets shrugged off gloomy data from Australia.
Shanghai soared more than six percent on optimism that more government measures will be unveiled during the annual session of the Chinese parliament which opens Thursday.
Tokyo gained 0.85 percent after parliament enacted legislation required to go ahead with a plan to hand more than 20 billion dollars back to the public.
Hong Kong ended 2.5 percent higher on hopes of further measures from China, which is expected to unveil details of its 585-billion-dollar package announced in November.
"There are a lot of expectations of more stimulus measures to come out of China," Y.K. Chan, a portfolio manager at Phillip Asset Management, told Dow Jones Newswires.
Southeast Asia is looking to China to act as the engine of growth for the region as the global economic downturn bites its export-reliant economies.
Australian shares fell 1.6 percent after shock figures showed the economy shrank for the first time in eight years.
"When the GDP showed a contraction of 0.5 percent, the market reacted with force," said IG Markets analyst Chris Weston.
Kuala Lumpur was the only other loser in the region, shedding 0.2 percent.
TOKYO: Up 0.85 percent. The benchmark Nikkei-225 gained 61.24 points to 7,290.96 as bargain hunters emerged after recent falls.
Stocks were supported by the government's pledge to draw up measures to support the market, although the details were still being discussed.
Construction-related issues were lifted on hopes of robust demand from China.
Komatsu climbed 3.1 percent to 1,036 yen, Hitachi Construction Machinery added 7.3 percent to 1,213 yen and JFE Holdings rose 5.4 percent to 2,155 yen.
Uniqlo operator Fast Retailing firmed 1.5 percent to 9,520 yen after reporting a fourth straight month of rising sales.
Automakers declined after another plunge in US car sales in February.
Toyota lost 2.5 percent to 2,985 yen and Honda shed 3.5 percent to 2,205 yen.
HONG KONG: Up 2.5 percent. The benchmark Hang Seng Index rose 297.27 points to 12,331.15.
Chinese banks were also boosted by comments from Wang Jianxi, vice president of China Investment Corp, who said the sovereign wealth fund would raise its holdings in China's three biggest listed commercial banks when necessary.
China Construction Bank rose 4.8 percent to 3.96 dollars, Industrial & Commercial Bank of China gained 5.0 percent to 3.18, and Bank of China was up 3.4 percent at 2.16.
Ping An Insurance was 7.0 percent higher at 38.05 dollars and China Life climbed 4.8 percent to 22 dollars.
HSBC continued its decline, ending the session 4.4 percent lower at 44.20 dollars. The banking giant reported a 70-percent tumble in last year's annual net profit on Monday.
SYDNEY: Down 1.6 percent. The benchmark S&P/ASX 200 index dropped 52.8 points to 3,166.4 after data showed Australia's economy contracted 0.5 percent in the December quarter, ending a long run of expansion on the back of a China-driven resources boom.
Financial and resources stocks led the losses, with the four main banks lower and the major miners losing ground.
ANZ Banking Group lost 3.9 percent to 12.45, Commonwealth Bank was off 3.6 percent to 27.27, Westpac shed 2.3 percent to 15.70 and National Australia Bank eased 0.7 percent to 17.20.
BHP Billiton slipped 0.7 percent to 27.11, while Rio Tinto fell 1.3 percent to 43.47. Newcrest Mining dipped 0.4 percent to 31.39.
SHANGHAI: Up 6.12 percent. The benchmark Shanghai Composite Index soared 126.68 points to 2,198.11.
Financial firms gained momentum thanks to reports on Wednesday that banks extended around 800 billion yuan (117 billion dollars) in new loans last month, more than triple the amount lenders issued last February.
Industrial and Commercial Bank of China rose 4.9 percent to 3.83 yuan, Bank of China surged 9.4 percent to 3.50 yuan, and China Construction Bank ended 5.0 percent higher at 4.19 yuan.
Real estate stocks rose strongly on stimulus hopes. China Vanke climbed 6.5 percent to 7.90 yuan, while Poly Real Estate surged 8.9 percent to 19.91 yuan.
TAIPEI: Up 2.39 percent. The weighted index climbed 106.08 points to 4,541.42, led by gains in the electronics sector.
Hon Hai Precision rose 5.6 percent to 71.90 Taiwan dollars, on news that the company is planning to increase its workforce in China by five percent.
United Microelectronics Corp gained 4.71 percent at 8.22 and Taiwan Semiconductor Manufacturing Co added 3.1 percent to 46.00.
Chip designer MediaTek was up 2.0 percent at 300.50. Taiwan Cement and Asia Cement rose 4.0 percent and 5.6 percent to 26.30 and 25.45, respectively.
SEOUL: Up 3.3 percent. The KOSPI index gained 33.69 points to 1,059.26 as heavy industry companies jumped on hopes that China will unveil more stimulus measures.
POSCO rose 3.1 percent to 320,500 won, Doosan Heavy Industries jumped 8.7 percent to 60,300 and Samsung Heavy Industries climbed 9.3 percent to 22,950. Samsung Electronics rose 2.8 percent to 489,000 won and LG Display gained 5.7 percent to 27,100, while Hyundai Motor gained 3.0 percent to 50,500.
SINGAPORE: Up 1.04 percent. The blue-chip Straits Times Index added 15.83
points to 1,544.34
Oversea-Chinese Banking Corp rose 13 cents to 4.25 and United Overseas Bank edged up a cent to 9.14 while DBS eased five cents to 7.19.
Among property shares, CapitaLand was up 10 cents to 1.95 and Keppel Land gained three cents to 1.27 but City Developments fell 23 cents to 4.51.
KUALA LUMPUR: Down 0.2 percent. The Kuala Lumpur Composite Index lost 1.81 points to 866.93.
TMI dipped four percent to 2.64 ringgit, Public Bank lost 2.4 percent to 8.20 and Tenaga slipped 0.8 percent to 6.25.
Among gainers, IOI Corp added 1.7 percent to 3.66 ringgit, IJM gained 3.4 percent to 3.64 and Top Glove rose 2.7 percent to 4.56.
BANGKOK: Up 1.15 percent. The Stock Exchange of Thailand composite index rose 4.77 points to 417.86.
"Our market received a boost after the report that the Chinese government intends to expand its stimulus package to six trillion yuan," said Sasikorn Charoensuwan, head of research at Phillip Securities.
Mobile phone operator Advanced Info Service added 0.50 baht to 79.50, while coal miner Banpu rose 6.00 to 198.00.
Bangkok Bank gained 2.50 to 71.50 and Kasikornbank climbed 1.50 to 42.00.
JAKARTA: Up 1.9 percent. The Jakarta Composite Index gained 24.56 points to1,289.38 after the central bank slashed its key rate by half a percentage point.
Bank Central Asia jumped 7.3 percent to 2,575 rupiah, while Bank Rakyat Indonesia gained 6.1 percent to 3,925. Bank Mandiri climbed 2.7 percent to 1,800.
MANILA: Up 1.4 percent. The composite index climbed 25.94 points to 1,885.92 points.
Meralco added 2.23 percent to 92 pesos while PLDT rose 4.1 percent to 2,275 pesos. PLDT subsidiary Pilipino Telephone Corp. gained 1.35 percent to 7.50 pesos.
San Miguel Corp. saw its A and B shares fall 3.33 percent to 43.50 pesos.
MUMBAI: Up 0.23 percent. The benchmark 30-share Sensex index rose 19.2 points to 8,446.49.
WELLINGTON: Up 2.13 percent. The benchmark NZX-50 index rose 51.40 points to 2,469.34 in light trade.
Market leader Telecom rose 12 cents to 2.38 New Zealand dollars, Fletcher Building added 11 cents to 5.26, and Contact Energy gained two cents to 5.51. Fisher & Paykel Appliances rose two cents to 50 cents and PGG Wrightson was unchanged at 95. --AFP
