Asian shares rise as oil fears ease
HONG KONG: Asian stocks rose on Tuesday with Tokyo performing strongly after a rally on Wall Street and as oil prices stabilised, although the crisis in the Arab world kept gains in check.
Tokyo ended the session up 1.22 percent, or 129.94 points, at 10,754.03 as exporter stocks were boosted by a weaker yen -- a result of dealers moving out of the safe-haven Japanese currency amid renewed risk appetite.
Hong Kong rose 0.25 percent, or 58.40 points, to 23,396.42.
Shanghai was 0.47 percent, or 13.72 points, up at 2,918.92 after a top official suggested inflation would fall in February, boosting hopes that further interest rate hikes in the near term can be avoided.
Taipei rose 1.49 percent, or 127.91 points, to end at 8,727.56.
Sydney ended lower however after the Australian central bank said it would keep rates on hold at 4.75 percent and forecast inflation within its 2-3 percent target this year, but added that monetary policy would remain mildly restrictive.
The S&P/ASX 200 index fell 0.11 percent, or 5.3 points, to 4,826.40.
Seoul was closed for a public holiday.
Traders welcomed Saudi Arabia's commitment on Monday to increase oil production in case of a supply shortfall caused by the unrest across the oil-rich Middle East and North Africa, particularly Libya.
Saudi Arabia, the largest producer in the OPEC oil cartel, said its cabinet had discussed the anti-regime protests in Libya "and their repercussion on oil production in that country".
Saudi Arabia "is committed to the stability of the market" and to ensuring that oil supplies remain available, it said in a statement.
New York's benchmark West Texas Intermediate contract for April delivery rose 44 cents to $97.41 and Brent North Sea crude for April was up 62 cents at $112.42.
While oil prices were up, they remained well short of last week's peaks, when Brent soared close to $120.
Protests that have sprung up across the region from Tunisia and Algeria to Egypt and Oman have now spread to Djibouti and Kuwait, increasing concerns for the region.
However Tokyo's Nikkei index was lifted by a weaker yen as dealers shifted attention to hopes for recovery in the US economy.
"It will be easier to shift from pessimistic to optimistic sentiment this week on the back of a recovery in the US economy," Masayoshi Yano, senior market analyst at Meiwa Securities, told Dow Jones Newswires.
The euro held steady against the dollar amid expectations that the European Central Bank is closer to raising its key rate than its US counterpart.
The euro was higher at $1.3819 compared to $1.3803. The unit rose to 113.40 yen from 112.85 yen.
The dollar also firmed against the yen, supported by interest rate differentials between the United States and Japan, dealers said.
The dollar traded at 82.14 yen in Tokyo afternoon trading, up from 81.79 yen in New York late Monday.
In China, hopes that rates will not be hiked in the near term were lifted after Zhang Ping, the director of the nation's top economic planning agency, was quoted as saying inflation in February was likely to turn out lower than January's 4.9 percent.
Two manufacturing indexes also suggested a slowdown in activity.
The HSBC Manufacturing PMI, or purchasing managers index, fell to a seven-month low of 51.7 in February from 54.5 in January, while a government survey showed factory production fell to a six-month low of 52.2 in February from 52.9 in January.
A reading above 50 indicates expansion while below 50 means contraction.
The easing follows a series of measures by Beijing to rein in the economy and inflation, including three rate hikes in four months and increases in the amount of money banks must keep in reserve.
However, the data was tempered by figures showing input prices rose for the third month in a row, fuelling inflation.
Regional markets were given a strong cue by the Dow, which gained 0.79 percent on Monday thanks to merger and acquisition activity.
Gold closed at $1,413.00-$1,414.00 an ounce, up from Monday's close of $1,411.30-$1,412.30.
In other markets:
-- Manila rose 0.46 percent, or 17.50 points, to 3,784.23.
Aboitiz Power added 1.91 percent to 29.35 pesos and Metropolitan bank gained 3.31 percent to 59.30 pesos, but Philippine Long Distance Telephone fell 0.92 percent to 2,140 pesos.
-- Wellington closed 0.41 percent, or 13.87 points, higher at 3,384.39.
Telecom ended up 3.4 percent at NZ$2.15 and Sky City rose 1.5 percent to NZ$3.30, but Fletcher Building ended down 0.3 percent at NZ$8.74.
-- Jakarta rose 1.20 percent, or 41.63 points, to 3,512.62, lifted by hopes the central bank will maintain its key interest rate at a policy meeting on Friday after benign February inflation data.
Bank Rakyat Indonesia rose 4.3 percent to 4,900 rupiah, while car distributor Astra International climbed 3.8 percent to 54,000 rupiah.
-- Kuala Lumpur rose 0.74 percent, or 10.99 points, to 1,502.24.
Gaming giant Genting climbed 2.7 percent to 10.26 ringgit, telecoms firm Axiata rose 2.3 percent to 4.99 and national carrier Malaysian Airlines slid 1.6 percent to 1.86.
-- Singapore rose 1.90 percent, or 57.09 points, to 3,067.6.
DBS Bank rose 1.69 percent to Sg$14.42 and Singapore Airlines advanced 0.73 percent to Sg$13.72.
-- Bangkok edged up 0.66 percent, or 6.57 points, to 994.48.
Siam Cement rose 1.3 percent to 315.00 baht, while PTT climbed 0.6 percent to 339.00 baht.
-- Mumbai jumped 3.50 percent, or 623.10 points, to 18,446.50, its third straight day of gains.
In addition to improved global sentiment, shares were lifted by a prediction from the government that the economy could grow nine percent in the next financial year.
Auto stocks were among the top gainers, as car makers Maruti Suzuki India and Tata Motors announced robust growth in sales for February.
India's leading auto maker Mahindra and Mahindra rose 8.36 percent, or 51.3 rupees, to 665.45, while Maruti Suzuki India rose 7.14 percent, or 86.2 rupees, to 1,292.9, after it said total sales in February rose 15.5 percent to 111,645.
India's largest private bank ICICI Bank rose 5.66 percent, or 54.95 rupees, to 1,025.95.