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The Nikkei 225 Average rose 2.0% to 10513.67, with banks rebounding after falling sharply recently on concerns they may have to raise capital after the G-20 nations agreed to tighten capital requirements last week. Shares of Mitsubishi UFJ Financial Group rose 4.4%, with Sumitomo Mitsui Financial Group rising 3.6% and Mizuho Financial Group gaining 2%.
Chinese shares defied the broad trend in Asia to end a seven-session winning run as metals producers and auto makers retraced some of their hefty gains of late. But analysts remained confident likely strong economic data for August due Friday could spur further advances.
"There is strong evidence of accelerating domestic economic growth in response to the fiscal stimulus program of last November and front loading of overall 2009 bank lending in the first half of the year," Cantor Fitzgerald analysts Uwe Parpart and Wing Sze Liu wrote in a report. "We expect the August data due out (Friday) to reinforce those trends," they said, adding the Shanghai Composite was expected to hit 3800 by the first quarter of 2010.
In Thursday's trading, the benchmark index ended down 0.7% at 2924.88, with recent gainers leading declines. Zhongjin Gold fell 3.4%, Jiangxi Copper shed 1.6% and Baoshan Iron & Steel gave up 1.5%.
Elsewhere, Hong Kong's Hang Seng Index added 1.1%, South Korea's Kospi climbed 2.3%, Australia's S&P/ASX 200 advanced 1.1%, New Zealand's NZX 50 inched up 0.3%, Taiwan's Taiex edged up 1.1% and Singapore's Straits Times advanced 1.2%. In afternoon trading, India's Sensex fell 0.1%.
Dow Jones Industrial Average futures were flat in screen trade.
The gains in Tokyo were in spite of data showing Japanese core machinery orders fell by a steeper-than-expected 9.3% in July from the previous month.
"Machinery orders in July were weak, but leading indicators of corporate investment are turning. The rise in capacity utilization and corporate profitability points to stronger investment," Macquarie Group economist Richard Jerram said.
Shares of Kirin Holdings rose 1.2% after Suntory Holdings confirmed it was in talks to buy soft drink maker Orangina SAS; Suntory itself is in parallel merger talks with Kirin Holdings.
Semiconductor shares advanced around the region after Texas Instruments raised its third-quarter outlook, further evidence of improving demand. Elpida Memory climbed 3.4% and Tokyo Electron added 2.8% in Tokyo, Taiwan Semiconductor Manufacturing Co. rose 2.4% in Taipei and Hynix Semiconductor advanced 2.6% in Seoul.
In Mumbai, shares of Bharti Airtel climbed 1.3% after people familiar with the situation told Dow Jones Newswires the mobile-services operator had increased its offer for a 49% stake in South Africa's MTN Group by about $900 million to a total of $14 billion in cash and stock. Bharti had earlier denied a Bloomberg report that it has reached a preliminary agreement with MTN after sweetening its offer.
Taiwanese financial stocks gained after the Economic Daily News quoted an unnamed senior finance official as saying Taiwan and China have resolved most of the issues hindering the signing of a memorandum of understanding on financial sector cooperation. Fubon Financial Holding climbed 5.4% and Cathay Financial Holding added 3.5%.
Genting Singapore closed 4.2% lower in Singapore as trading resumed after Wednesday's news of its S$1.63 billion ($1.15 billion) rights issue.
In currency trading, the euro was recently buying $1.4533, from $1.4551 late in New York, and 133.97 yen, from 133.90 yen, while the U.S. dollar was at 92.18 yen, from 92.08 yen.
The Australian dollar turned weak after data showed the economy shed 27,100 jobs in August, which was worse than economists had expected. The Australian dollar was recently buying 85.45 U.S. cents.
October Nymex crude oil futures were recently 83 cents higher at $72.14 a barrel on Globex, after weekly U.S. oil inventory data from the American Petroleum Institute showed a higher-than-expected drop of 7.2 million barrels in oil stocks. Earlier, the Organization of Petroleum Exporting Countries agreed, as expected, to keep oil-production quotas unchanged.
Spot gold was down $10 from the New York close at $983.40 a troy ounce, with much debate on whether the yellow metal can retake - and hold - the $1,000 mark.
-Dow Jones Newswires; +65-6415-4140; markettalk@dowjones.com
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(END) Dow Jones Newswires
09-10-09 0616ET
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