(RTTNews.com) – Asian stocks extended gains for a second consecutive session on Tuesday, as a weaker yen, a jump in oil prices and a rebound on Wall Street overnight led by technology stocks helped to offset worries over China’s economy. Energy stocks were among the big gainers across the region as oil extended sharp overnight gains on worries about supply outages and declining U.S. output.
Chinese shares fell slightly on speculation that Beijing will not resort to large stimulus measures to boost growth. While the benchmark Shanghai Composite index dropped 7.18 points or 0.25 percent to 2,843.68, Hong Kong’s Hang Seng index rallied 234.85 points or 1.18 percent to finish at 20,118.80.
China will push forward supply-side reforms to counter ongoing economic headwinds and address outstanding issues such as excess capacity, state television quoted President Xi Jinping as saying on Monday after weak April data.makeAd(‘4′,’300×250′,’mktsnews’,’article’,”,”);
Also, ahead of the first estimate of Q1 GDP due out Wednesday, final data published by the Economy Ministry showed that Japan’s industrial production grew more than estimated in March. Output grew 3.8 percent from February instead of 3.6 percent estimated initially.
The Nikkei average ended the session up 186.40 points or 1.13 percent at 16,652.80 and the broader Topix index closed 1.07 percent higher at 1,335.85. Energy explorer Inpex and Japan Petroleum ended up more than 3 percent each. Sumitomo Bakelite soared 9.5 percent after forecasting higher profit for its fiscal 2016.
Apple suppliers Japan Display and Minebea rose over 2 percent each after Warren Buffett’sBerkshire Hathaway Inc. disclosed a $1.07 billion stake in Apple. Toyota Motor rose 1.2 percent on a Nikkei report it plans to build a new plant in Malaysia. Banking and insurance firm Sony Financial Holdings tumbled 4.9 percent after its fiscal-year profit fell 20 percent.
Australian shares rose notably, although banks lagged after minutes from the May 3Reserve Bank of Australia board meeting revealed the board had to be persuaded to cut the cash rate to a record low 1.75 percent. The benchmark S&P/ASX 200 rose 37 points or 0.69 percent to 5,395.90 and the broader All Ordinaries index closed up 38.20 points or 0.70 percent at 5,458.50.
Stronger metal prices lifted miners, with BHP Billiton rallying 3.5 percent and smaller rival Fortescue Metals Group climbing 7.9 percent. Oil & gas producer Santos soared 6.3 percent, Oil Search gained 3.1 percent and Woodside Petroleum advanced 2.9 percent.
ANZ Bank rose 0.8 percent as it unveiled plans to cut around 200 jobs from its local workforce. Rival Commonwealth rose about 0.9 percent and Westpac gained half a percent, while NAB shares fell over 3 percent on going ex-dividend.
Drilling services provider Boart Longyear tumbled 4 percent on reporting an underlying first quarter loss of $US61 million on the back of lower oil prices and unfavorable currency movements. Paint company DuluxGroup declined 3 percent after its first-half profit fell short of forecasts.
Seoul shares ended largely unchanged despite positive cues from Wall Street and other regional markets. The benchmark Kospi average inched up 0.15 point or 0.01 percent to finish at 1,968.06 amid selling by foreign investors. Samsung Electronics rose 1.3 percent and S-Oil climbed 2.9 percent, while steelmaker POSCO lost 2.4 percent.
New Zealand shares gained ground as investors hunted for high yield stocks in a low interest-rate environment. The benchmark S&P/NZX 50 index rose 60.74 points or 0.88 percent to 6,974.87, with Spark New Zealand, Ryman Healthcare, Meridian Energy and Steel & Tube Holding climbing 2-3 percent. New Zealand Refining slumped 6.8 percent after reporting lower refining margins for the March/April period.
The quarterly survey of inflation expectations done on behalf of the Reserve Bank of New Zealand showed business managers forecast annual inflation to average 1.22 percent over the next twelve months, up from 1.09 percent in the previous survey in February.
Elsewhere, Singapore’s Straits Times index was climbing 1.8 percent, India’s Sensex was up 0.8 percent, Malaysia’s KLSE Composite was gaining 0.7 percent and the Taiwan Weighted rose 0.9 percent while Indonesian shares were marginally lower.
Singapore’s non-oil domestic exports fell at a slower-than-expected pace in April, due to a contraction in both electronic and non-electronic shipments, official data showed.
U.S. stocks rallied overnight as sharp gains in oil prices in the wake of a bullish report from Goldman Sachs and a rally in tech stocks outweighed weaker-than-expected regional manufacturing data. The Dow and the S&P 500 rose about 1 percent each while the tech-heavy Nasdaq added 1.2 percent.
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