Asian stocks cheered by improving US picture

Technology stocks powered Tokyo’s equities benchmark to its biggest gain in three weeks on Wednesday, after strong earnings from US technology companies boosted sentiment across the sector.

Better than expected results from Apple and IBM stimulated demand for their peers around the Pacific. Wider exporters received further cheer from news of a sharp rise in US housing starts, which bolstered optimism about the state of the US economy. Furthermore, financial companies gained ground on signs of progress in Washington negotiations on raising the government debt ceiling.

The combined effect produced broad-based gains for indices across the region, but especially in Japan, where the Nikkei 225 gained 1.2 per cent to 10,005.90, its best close in five sessions. Nikon was one of its best-performing stocks, up 3.5 per cent at Y1,830. Pioneer rose 1.8 per cent to Y392, Toshiba gained 2.7 per cent to Y413 and TDK jumped 3.1 per cent to Y4,375. Honda Motor gained 1.3 per cent to Y3,185.

South Korea’s market heavyweight Samsung Electronics climbed 3.5 per cent to Won851,000. LG Display jumped 4.8 per cent to Won30,550 and battery producer Samsung SDI climbed 7.1 per cent to Won174,500. Overall, the Kospi index rose 1.2 per cent to 2,154.95, with gains dulled by profit-taking in shipbuilders Hyundai Heavy Industries – down 3.9 per cent at Won432,000 – and Daewoo Shipbuilding & Marine Engineering, 4.9 per cent lower at Won38,550.

The region’s financials were buoyed by comments from US President Barack Obama that there had been “some progress” in talks over raising the US debt ceiling. In Hong Kong, Bank of Communications advanced 1.4 per cent to HK$6.71, while in Tokyo Sumitomo Mitsui Trust Holdings added 1.1 per cent to Y287 and Mitsubishi UFJ Financial Group gained 1.6 per cent to Y389. In Sydney, Westpac Banking Corp rose 2.3 per cent to A$21.16 and Commonwealth Bank of Australia added 2.1 per cent to $49.55.

Australia’s S&P/ASX 200 index gained 1.8 per cent overall to 4,549.71, as strong news from its dominant resource stocks added to the momentum from the financial sector. BHP Billiton, the miner, was up 1.9 per cent at A$43.44 after reporting quarterly iron ore output up 14 per cent to a record, while Rio Tinto advanced 1.5 per cent to A$82.55.

There was a 5.1 per cent gain for News Corp – taking its stock to A$15.24 – as bargain-hunters chased it following an 8.9 per cent loss so far this month. Rupert Murdoch, News Corp chief executive, on Tuesday denied any knowledge of alleged phone hacking at his now-defunct News of the World tabloid before a UK parliamentary committee.

In Hong Kong, the Hang Seng index added 0.5 per cent to 22,003.7, as property developers added to gains driven by banks. China Resources Land added 1.9 per cent to HK$15.14, while Li & Fung was 1.8 per cent higher at HK$13.72.

Overall, the FTSE 100 Asia Pacific index gained 1.2 per cent to 264.48.