Asia: Stimulus talk fuels advance

Date: Tuesday 29 May 2012

Asian markets advanced on Tuesday on the back of speculation that China may administer further stimulus measures to boost growth.

The benchmark Nikkei 225 index closed up for the fourth consecutive session by 63 points to 8,657 in Tokyo. The Hang Seng increased 256 points to 19,057 in Hong Kong.

The Nikkei overcame earlier losses after Premier Wen Jiabao said China, Japan's biggest export market, needs to stimulate growth.

Shares on the move included construction equipment companies Komatsu and Hitachi Construction Machinery. Both gained over 3% in Tokyo.

Chipmaker Renesas Electronics went into freefall, tumbling over 16% after it said it plans to raise more than 100bn yen to fund company restructuring.

Hong Kong property stocks also did well on the prospect of more stimulus. Shares of China Resources Land piled on 3.5% while Agile Property leapt 4%.

Oil stocks headed north as crude oil prices rose. Inpex beefed up 2%, Petrochina firmed 0.78% while Cnooc increased 1.8%.

Hong Kong financials found friends following stimulus speculation. HSBC added 0.32%, Bank of China rose 0.34% while insurer China Life gained 2.86%.




CJ

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