Asian stocks rose for the first time in a week, lifted by Japanese gains as the prospect of easing loan restrictions in the Osaka region buoyed consumer lenders while short covering helped exporters.
The FTSE Asia-Pacific index edged forward 0.2 per cent to 214.86, snapping a four-session losing streak, with Tokyo’s Nikkei 225 Average rising 0.7 per cent to 9,266.78, its best performance in two weeks.
Commenting on reports that Osaka’s regional government is set to introduce measures supporting consumer lending, Naoki Fujiwara, of Shinkin Asset Management, said: “The prospect of looser lending restrictions in Osaka is stoking expectations that consumer lenders will once again start to expand.”
Consumer lenders, which offer unsecured loans to individuals and small business owners, have been struggling for survival amid a shrinking market and stricter lending regulations.
But Acom led the surge on Monday, soaring 26.2 per cent to Y1,444, its steepest rise in at least 16 years.
Other consumer lenders to benefit included Takefuji Corp, which jumped 18 per cent to Y298, bouncing back from record lows reached last week, Aiful Corp, which leapt 24 per cent to Y135, Promise, which gained 17 per cent to Y685, and Credit Saison, which rose 9 per cent to Y997 for the biggest gain on the Nikkei 225.
Mitsubishi UFJ Financial was the biggest positive contributor to the Topix, Tokyo’s broader stock market index that gained 0.7 per cent to 836.89. Japan’s largest bank by market value is also Acom’s parent and rose 1 per cent to Y406.
Meanwhile, shares of exporters gained broadly after many fell to multimonth lows last week, prompting some short covering.
The dollar climbed further from a seven-month trough against the yen, boosting the revenues of Japanese companies trading abroad. Mr Fujiwara said: “The yen is also taking a breather from its strengthening and people are buying exporters.”
Elpida Memory, the computer memory chipmaker, rose 3.2 per cent to Y1,331 yen. The stock was also boosted by manufacturing deals with three Taiwanese companies.
The biggest drag on the Nikkei 225 yesterday was Fast Retailing, which fell 1.8 per cent to Y13,190 as domestic sales at its Uniqlo clothing stores dropped 5.8 per cent last month and Nomura Holdings cut the retailer’s rating.
Hong Kong stocks slid to their longest losing streak in two months as the Hang Seng index fell for a fourth session, down 0.3 per cent to 19,842.20.
Lenders were hit as Bank of China added to fears of excess share supply with plans for an $8.9bn rights offer. The nation’s third-largest lender dropped 1.3 per cent to HK$3.92.
Shanghai stocks hit a 15-month low, the Composite index retreating 0.8 per cent to 2,363.95.
SAIC Motor, the mainland’s biggest carmaker, slid 0.7 per cent to Rmb12.31, extending a 39 per cent decline this year, after China’s passenger car sales growth weakened in June.
Elsewhere, the S&P/ASX 200 in Sydney fell 0.4 per cent to 4,222.1 in spite of shares in Centennial Coal, Australia’s biggest independent coal producer, jumping 32 per cent to a two-year high of A$5.83 after it agreed to a $2bn takeover from Banpu, Thailand’s biggest coalminer.
Mumbai fell after the central bank lifted interest rates for the third time this year to control inflation, the BSE Sensex dipped 0.1 per cent to 17,441.44.
