Japanese stocks shot higher in a day of mixed trade in Asia on Tuesday, while investors were digesting a flurry of earnings reports in Australia.
Japan’s Nikkei 225 index leaped 450.13 points, or 3.1%, to 14,843.24, extending earlier gains after the Bank of Japan said it would double incentives designed to increase bank lending — an attempt to increase the effect of monetary stimulus measures that the country is using to battle inflation. The central bank left its main policy program unchanged.
The market was supported by a weaker yen, which fell after the Bank of Japan announcement — last at ¥102.58, compared with ¥101.92 late Monday in New York.
Despite the gain on Tuesday, the Nikkei remains Asia’s worst performing market for the year--down 9.1% so far in 2014.
The Hang Seng Index in Hong Kong gained 51.78 points, or 0.2%, to 22,587.12
The Australian dollar picked up slightly in Asian trade — last at $0.9063 U.S., compared with $0.9031 U.S. late Monday in New York — after the Reserve Bank of Australia continued to forecast a period of stable interest rates in the minutes from its board meeting, held earlier in the month.
Australia’s reporting season continued on Tuesday, with shares in a number of the country’s major companies reacting to earnings news.
At the forefront was BHP Billiton, the world’s largest mining company by output, which gained 1.8% after reporting that its first-half profit rose as it reduced spending and extracted more from its assets, including its large Australian iron-ore pits.
The company’s $8.1 billion U.S. net profit in the six months through Dec. 31 comfortably exceeded analyst expectations for $7 billion U.S.
Also in Australia, shares in Seven West Media fell 1.6%, even after the company returned to profit in its fiscal first half and forecast low-single-digit growth for the full year. Overall revenue for the six months, however, was 1.2% lower.
Australian rail and port operator Asciano fell 0.2% after it said that profit dipped in the first-half of its fiscal year due to extra costs in the redevelopment of a major port in Sydney. Coca-Cola Amatil lost 4.3% after the soft drink distributor reported an 83% fall
In other markets;
The Shanghai CSI 300 Index erased 29.21 points, or 1.3%, to 2,282.44
Taiwan’s Taiex Index tacked on 36.68 points, or 0.4%, to 8,556.23
Singapore’s Straits Times Index inched higher 1.5 points to 3,070.78
Korea’s Kospi Index added on 0.55 points to 1,946.91
The New Zealand Exchange 50 index added 0.11 points to 4,895.10
In Australia, the S&P/ASX 200 hiked 9.93 points, or 0.2%, to 5,392.82
