Investing.com - Asian stock markets were broadly higher on Wednesday, as appetite for riskier assets improved ahead of a liquidity boosting operation by the European Central Bank later in the day.
During late Asian trade, Hong Kong's Hang Seng Index rose 0.35%, Australia’s ASX/200 Index climbed 0.85%, while Japan’s Nikkei 225 Index added 0.1%.
Investors looked ahead to the launch of the ECB’s second three-year long-term refinancing operation, after a similar liquidity injection in December eased pressure on peripheral euro zone bond markets.
Market participants expect the liquidity operation to total nearly EUR500 billion, after banks borrowed EUR489 in the December operation.
In Japan, the Nikkei rose to a fresh seven-month high during intraday trade, climbing above the 9,800-level for the first time since last August, before retreating to close nearly flat on profit-taking.
The index has gained nearly 11% since the beginning of the month, its second best February since 1991, as investors turned bullish on Japanese stocks after the Bank of Japan unexpectedly announced fresh easing measures earlier in the month.
Shares in Panasonic rose 1.5% after promoting Senior Managing Director Kazuhiro Tsuga to president, in an effort to return to profitability. The change will take effect June 27, subject to shareholder approval.
But shares in Elpida Memory plunged 97.2% to fall to JPY7 per share, a day after filing for bankruptcy protection. The stock will be delisted from the Tokyo Stock Exchange on March 28.
The company, which is the only chipmaker in Japan to specialize in DRAM chips used in mobile phones and computers, has been beset by plummeting prices, fierce competition and flooding in Thailand last year that disrupted production.
Meanwhile, in Hong Kong, shares in airliners performed strongly for the second day after oil prices retreated below USD106 a barrel, easing concerns that higher fuel costs would weigh on profits.
Cathay Pacific Airways jumped 3.5%, China Eastern Airlines shares rose 2%, while Air China added 1.75%.
On the downside, shares in property developers came under pressure after Shanghai’s housing bureau dismissed expectations that the city will ease restrictions on property purchases, as has been speculated by market players.
China Overseas Land & Investment saw shares drop 3.35%, Sino Land fell 1.9%, while Country Garden Holdings slumped 3.3%.
In Australia, retailers were in focus after official data showed that retail sales rose 0.3% in January, in line with expectations.
Supermarket operator Wesfarmers saw shares gain 1%, while Harvey Norman shares tumbled 4.2% after reporting disappointing first-half earning results.
Looking ahead, the outlook for European stock markets was upbeat. The EURO STOXX 50 futures pointed to a gain of 0.3%, France’s CAC 40 futures added 0.35%, London’s FTSE 100 futures rose 0.1%, while Germany's DAX futures pointed to a 0.4% increase.
Later in the day, Finland’s parliament was to vote on Greece’s bailout, while the U.S. was to release a preliminary report on fourth-quarter gross domestic product.
In addition, Federal Reserve Chairman Ben Bernanke was due to testify on the semi-annual monetary policy report before the House Financial Services Committee in Washington.
During late Asian trade, Hong Kong's Hang Seng Index rose 0.35%, Australia’s ASX/200 Index climbed 0.85%, while Japan’s Nikkei 225 Index added 0.1%.
Investors looked ahead to the launch of the ECB’s second three-year long-term refinancing operation, after a similar liquidity injection in December eased pressure on peripheral euro zone bond markets.
Market participants expect the liquidity operation to total nearly EUR500 billion, after banks borrowed EUR489 in the December operation.
In Japan, the Nikkei rose to a fresh seven-month high during intraday trade, climbing above the 9,800-level for the first time since last August, before retreating to close nearly flat on profit-taking.
The index has gained nearly 11% since the beginning of the month, its second best February since 1991, as investors turned bullish on Japanese stocks after the Bank of Japan unexpectedly announced fresh easing measures earlier in the month.
Shares in Panasonic rose 1.5% after promoting Senior Managing Director Kazuhiro Tsuga to president, in an effort to return to profitability. The change will take effect June 27, subject to shareholder approval.
But shares in Elpida Memory plunged 97.2% to fall to JPY7 per share, a day after filing for bankruptcy protection. The stock will be delisted from the Tokyo Stock Exchange on March 28.
The company, which is the only chipmaker in Japan to specialize in DRAM chips used in mobile phones and computers, has been beset by plummeting prices, fierce competition and flooding in Thailand last year that disrupted production.
Meanwhile, in Hong Kong, shares in airliners performed strongly for the second day after oil prices retreated below USD106 a barrel, easing concerns that higher fuel costs would weigh on profits.
Cathay Pacific Airways jumped 3.5%, China Eastern Airlines shares rose 2%, while Air China added 1.75%.
On the downside, shares in property developers came under pressure after Shanghai’s housing bureau dismissed expectations that the city will ease restrictions on property purchases, as has been speculated by market players.
China Overseas Land & Investment saw shares drop 3.35%, Sino Land fell 1.9%, while Country Garden Holdings slumped 3.3%.
In Australia, retailers were in focus after official data showed that retail sales rose 0.3% in January, in line with expectations.
Supermarket operator Wesfarmers saw shares gain 1%, while Harvey Norman shares tumbled 4.2% after reporting disappointing first-half earning results.
Looking ahead, the outlook for European stock markets was upbeat. The EURO STOXX 50 futures pointed to a gain of 0.3%, France’s CAC 40 futures added 0.35%, London’s FTSE 100 futures rose 0.1%, while Germany's DAX futures pointed to a 0.4% increase.
Later in the day, Finland’s parliament was to vote on Greece’s bailout, while the U.S. was to release a preliminary report on fourth-quarter gross domestic product.
In addition, Federal Reserve Chairman Ben Bernanke was due to testify on the semi-annual monetary policy report before the House Financial Services Committee in Washington.