Asian markets soar, Tokyo lifted by output data

HONG KONG—(UPDATE) Asian stocks surged on Tuesday, with Tokyo boosted by data showing factory output lifted last month, raising hopes for Japan’s recovery from the March 11 earthquake and tsunami.

The yen tumbled against the dollar and euro after Moody’s warned that it may cut Japan’s debt rating, while the European unit was also given a lift by a report that Germany may drop its call for Greece to restructure its debt.

Tokyo ended 1.99 percent, or 188.76 points, up at 9,693.73, its best percentage jump since March 30, while Sydney added 0.87 percent, or 40.8 points, to 4,708.3 and Seoul finished 2.32 percent, or 48.68 points, up at 2,142.47.

Hong Kong finished 2.16 percent higher, adding 499.81 points to 23,684.13 while Shanghai gained 1.37 percent, or 37.11 points, to 2,743.47.

The Nikkei rallied after the government said factory output rose one percent in April from the previous month.

Although the jump was lower than the 2.9 percent analysts had expected, it followed a record 15.5 percent drop in March, as the quake-tsunami broke supply chains and caused power outages that pushed the country back into recession.

The government forecast output would rise 8 percent in May and 7.7 percent in June.

“Production still remains stagnant due to the impact from the Great East Japan Earthquake,” the industry ministry said in a statement released with the figures, adding a recovery was expected in the near future.

Cosmo Securities strategist Toshikazu Horiuchi said: “Looking at these outlook figures, we are able to confirm the faster-than-expected recovery in Japan’s supply chain.”

However, he told Dow Jones Newswires that the outlook after June remained uncertain due to ongoing electricity shortages.

Most of the Nikkei’s big names rose, although Tokyo Electric Power, which operates the Fukushima atomic plant that was crippled by the March 11 disaster, slipped 2.76 percent a day after Standard & Poor’s cut its credit rating.

The agency downgraded Tepco by two notches to BB-plus from BBB, and slashed its long-term corporate credit rating five notches to B-plus, citing concerns over its debt.

The Nikkei added to its early gains thanks to a weak yen after Moody’s said it could lower Japan’s Aa2 credit rating in three months, citing doubt its leaders would manage to contain the industrialized world’s biggest debt.

The greenback rose to 81.23 yen in Tokyo afternoon trade from 80.79 yen in late Monday. The euro fetched $1.4382, up from $1.4264, and 116.82 yen from 115.24 yen.

New York markets were closed on Monday for a public holiday.

New York’s main contract, light sweet crude for July delivery, gained 57 cents to $101.16 a barrel and Brent North Sea crude for July delivery was up 62 cents at $115.30 in the afternoon.

Gold closed at $1,539-$1,540 per ounce in Hong Kong, up from Monday’s close of $1,535-$1,536.

In other markets:

— Taipei jumped 1.87 percent, or 165.16 points, to 8.988.84.

Taiwan Semiconductor Manufacturing Co was 2.13 percent higher at Tw$76.7 while leading smartphone maker HTC surged 4.27 percent at Tw$1,220.

— Manila fell 1.18 percent, or 50.60 points, to 4,244.64.

Philippine Long Distance Telephone Co. tumbled 4.98 percent to 2,328 pesos, Metropolitan Bank and Trust gave up 0.50 percent to 69 pesos and Ayala Land fell 4.16 percent to 15.20 pesos.

— Wellington rose 0.13 percent, or 4.66 points, to 3,547.64.

Fletcher Building closed up 1.3 percent to NZ$8.93, Air New Zealand gained 0.9 percent to NZ1.09 and Contact Energy rose 1.0 percent to NZ$6.00.

— Jakarta rose 10.83 points, or 0.28 percent, to 3,836.96 led by late foreign buying in bank and consumer-related blue chips on hopes for benign inflation data in May.

Bank Danamon gained 2.5 percent to 6,200 rupiah, while pharmaceutical company Kalbe Farma jumped 5.9 percent to 3,575 rupiah.

— Singapore closed up 19.33 points, or 0.62 percent, to 3,159.93.

SingTel gained 1.58 percent to Sg$3.21 and SIA was 0.14 percent higher at Sg$14.16.

— Kuala Lumpur ended up 1 percent or 15.45 points to close at 1,558.29.

Electricity company Tenaga gained 9 percent to 7.11 ringgit, while cigarette maker British American Tobacco rose 1.8 percent to 46.88. Construction company Lafarge Malayan Cement dropped 4 percent to 7.19.

— Bangkok edged down 0.25 percent, or 2.67 points, to 1,073.83.

Banpu fell 8 baht to 740, while Siam Cement lost 5 baht to 355.