Asia stocks mostly higher; Nikkei ends up 0.4% on earnings optimism

Investing.com - Asian stock markets were mostly higher during late Asian trade on Tuesday, as appetite for riskier assets continued to be supported by expectations the global economic recovery was gaining momentum.

During late Asian trade, Hong Kong's Hang Seng Index eased up 0.1%, Australia’s ASX/200 Index ended up 1.1%, while Japan’s Nikkei 225 Index closed up 0.4%.

In Tokyo, the Nikkei initially opened lower as a bout of profit-taking continued for a second day, before reversing losses to trade higher as market players snapped up shares of Japanese megabanks following a Nikkei Newspaper report saying lenders were expected to report a significant increase in earnings due to the rising value of their stock holdings.

Shares in Japan’s third-biggest bank Mizuho Financial Group climbed 3%, stocks of the nation’s largest lender Mitsubishi UFJ Financial Group advanced 3.75%, while Sumitomo Mitsui Financial Group jumped 4.4%.

The Nikkei has rallied nearly 22% since mid-November, as expectations for more aggressive monetary easing from the Bank of Japan under new Prime Minister Shinzo Abe underpinned sentiment.

Also in earnings news, mobile-phone operator KDDI Corp. tacked on 2.85% after raising its full-year operating-profit forecast to JPY505 billion from JPY500 billion and announced a stock split.

Elsewhere, in Australia, the benchmark ASX/200 Index jumped to a fresh 21-month high, as the market reopened after Monday’s holiday.

The big four banks all traded higher, with Australia's biggest lender, the Commonwealth Bank of Australia rising 1.8%, Westpac Banking Group adding 2.4%, while ANZ Banking Group and National Australia Bank climbed 1.7% and 1.75% respectively.

Meanwhile, in Hong Kong, the Hang Seng swung between modest gains and losses, as a sharp decline in index heavyweight Industrial and Commercial Bank of China limited gains.

China’s biggest lender lost 2% on news that Goldman Sachs was looking to sell USD1 billion worth of the bank's stock at a 3% discount to Monday's closing price.

Looking ahead, European stock market futures pointed to a flat open, as caution set in ahead of the outcome of a Federal Reserve meeting and U.S. data on fourth quarter growth on Wednesday.

The EURO STOXX 50 futures pointed to a loss of 0.15% at the open, France’s CAC 40 futures eased down 0.1%, London’s FTSE 100 futures were little changed, while Germany's DAX futures pointed to a flat open.  

The U.S. was to release reports on house price inflation and consumer confidence later in the trading day.

Get The News You Want

Read market moving news with a personalized feed of stocks you care about.

Get The App