Asia stocks rally on EU debt plan hopes; Nikkei jumps 2.8%

Investing.com – Asian stock markets rallied on Tuesday, boosted by strong overnight gains on Wall Street made on the back of hopes that euro zone policy makers will act to support the region’s struggling economy.

During late Asian trade, Hong Kong's Hang Seng Index jumped 2.6%, Australia’s ASX/200 Index surged 3.55%, while Japan’s Nikkei 225 Index rallied 2.82%.

Market sentiment was boosted amid speculation that the European Central Bank may ease monetary policy to help the euro zone economy after a senior bank official said Monday that a reduction in interest rates could not be ruled out.

Reports that the ECB is likely to debate the resumption of covered-bond purchases along with further measures to inject liquidity into European lenders at its policy-setting meeting next week further supported sentiment.

Strong gains in the financial sector helped lift the Nikkei from a 29-month low. Japan’s largest lender Mitsubishi UFJ Financial Group surged 4.3%, while rivals Sumitomo Mitsui Financial Group and Mizuho Financial Group advanced 3.4% and 1.8% respectively.

Shares in Japanese exporters with high exposure to Europe also contributed to gains. Consumer electronics giant Sony saw shares climb 3.65%, digital camera maker Canon rose 4.3%, while automakers Nissan and Honda added 4.5% and 3.4% respectively.

Elsewhere, in Hong Kong, shares in commodity producers led gains, as metal and oil prices rebounded on the New York Mercantile Exchange.
 
Oil and gas giant CNOOC saw shares rally 7.65%, Aluminum Corporation of China shares jumped 7.5%, China’s largest gold miner Zijin Mining advanced 4.5%, while shares in Jiangxi Copper soared 12.3%. 

Shares in the financial sector performed strongly, rebounding from recent losses. China’s largest lender Industrial and Commercial Bank of China shares climbed 7.1%, rival China Construction Bank rose 4.5%, while shares in insurer Ping An jumped 8.1%.

Also contributing to gains, shares in Esprit Holdings, the Hong Kong-based retailer that counts Europe as its largest market advanced 5.7%.

Meanwhile, the outlook for European stock markets was sharply higher. The EURO STOXX 50 futures pointed to a gain of 3.1%, France’s CAC 40 futures climbed 2.9%, the FTSE 100 futures advanced 2.75%, while Germany's DAX futures pointed to a strong gain of 3.4%.

Later in the day, the U.S. was to publish industry data on house prices, as well as a report on consumer confidence.