Most Asian stocks rose for a second consecutive session on Wednesday, with signs that Greece may avoid a default on its debt, gains on Wall Street for the second day in a row overnight and strong industrial production data from Japan underpinning sentiment.
Japan's Nikkei average closed 1.5 percent higher at a seven-week high, as a weaker yen against both the euro and the U.S. dollar and growing optimism for a viable solution to the Greek debt crisis lifted exporter shares such as Canon and Honda Motor. The broader Topix index of all Tokyo Stock Exchange First Section issues jumped 1.7 percent.
Sentiment also improved after data showed the nation's industrial output rose at the fastest monthly pace in more than 50 years in May, as production continued to recover after the March 11 catastrophes. According to data released by the Ministry of Economy Trade and Industry, industrial production rose 5.7 percent in May compared to April, the biggest gain since 1953.
Among exporter shares, Advantest rose 1.5 percent, Honda Motor rose 1.8 percent, Canon advanced 2.1 percent and Fanuc climbed 3.6 percent. Utility shares gained ground on a Nikkei report that the opposition Liberal Democratic Party will urge the government not to make other utility companies contribute to a pending scheme to provide compensation to people affected by the nuclear reactor accident.
Tohoku Electric Power soared 6.3 percent and Chubu Electric Power rallied 4 percent. Tepco shares closed 2.8 percent higher after shareholders of the company rejected a motion for the company to abandon nuclear power.
China's benchmark Shanghai Composite index fell 1.1 percent, with banks and property developers leading the declines, amid fears the central bank has more interest rate hikes in the offing. The People's Bank of China yesterday lifted the yield on one-year bills issued in its regular open market operation for the second straight week, increasing speculation that it may soon announce an interest rate hike to combat inflation.
China's June consumer price index inflation may have risen to as high as 6.2 percent in June, as food prices continued to rise, said a report released earlier this week by China International Capital Corp. Hong Kong's Hang Seng index pared early gains to finish essentially unchanged.
The Australian market closed sharply higher, as a rally in copper prices bolstered mining shares. Both the benchmark S&P/ASX 200 and the broader All Ordinaries index closed up about 1.2 percent each. BHP Billiton rose 1.8 percent, rival Rio Tinto gained 1.5 percent and Fortescue added 3.5 percent. Meanwhile, a Senate report released today has asked the Gillard government to scrap the proposed mining and resources tax as it could harm Australia's competitiveness on an international level.
NAB led the financial sector higher, rising 1.5 percent, while Commonwealth gained 1.1 percent, ANZ advanced 0.9 percent and Westpac added 0.7 percent. Telstra Corp. shed 0.7 percent as the phone company announced that its long-standing CFO, John Stanhope, will retire on December 30, 2011 after more than four decades with the company.
South Korea's Kospi average climbed 1.5 percent, with automakers and refiners leading the gains, as investors believed that an agreement on Greek austerity measures is likely. Kia Motors rose 2.7 percent, Hyundai Motor climbed 3.5 percent, S-Oil jumped 4.5 percent and SK Innovation closed up 3.3 percent. CJ Group-related shares tumbled after the food company was named preferred bidder for Korea Express.
The average ratio of operating profit to sales of South Korean firms, a key gauge of profitability, rose to 5.9 percent last year from 5.2 percent a year ago, helped by strong overseas demand and relatively low oil costs, the Bank of Korea said in a report based on a survey of about 306,000 companies.
New Zealand's benchmark NZX-50 lost 0.8 percent, with Tower bearing the brunt of the selling on fears of rising reinsurance costs. Shares of the insurer, which counts Guinness Peat Group as its cornerstone shareholder, tumbled 3.7 percent. The costs of Christchurch's earthquake damage mean reinsurance rates will triple for some New Zealand insurance companies, Standard and Poor's said earlier this week.
Carpet maker Cavalier Corp. fell 2.6 percent after rival Godfrey Hirst filed its High Court appeal against a Commerce Commission's ruling that would allow Cavalier venture to become a monopoly in New Zealand wool scouring. Heartland New Zealand lost 2.8 percent after rural services firm PGG Wrightson received shareholder approval to sell its finance unit to Heartland.
India's Sensex was last trading up over a percent, extending gains for a fifth consecutive session, with renewed foreign inflows and expectations that inflationary pressures will ease in the coming months supporting sentiment.
Elsewhere, Indonesia's Jakarta Composite index was up 0.4 percent, Malaysia's KLSE rose 0.3 percent, Singapore's Straits Times added a percent and the Taiwan Weighted closed up 1.1 percent.
Crude futures were firm after rising more than 2 percent overnight, buoyed by a weaker dollar and data showing a decline in the U.S. crude inventories. Crude oil inventories dropped by 2.7 million barrels to 360.3 million last week, while gasoline stockpiles declined 91,000 barrels to 211.8 million, a report from the American Petroleum Institute released late Tuesday showed.
The major U.S. averages closed up between 1.2 percent and 1.5 percent overnight, with continued optimism about the likelihood of a resolution to the Greek debt crisis generating buying interest.
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May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.