Asia markets rise to months-long highs


Japan's Nikke index shot up 3.4 percent, to a 3-month high, with investors keen to see banks writing off their bad debts

By staff and wire reports

HONG KONG, China -- Asian stocks rose sharply on Monday, with many markets driving to their highest level in months.

Japan's Nikkei index roared ahead 3.4 percent, closing at 11,064.30. That's its highest level in three months.

The market was encouraged by signs that Japan's banks are getting tough on bad loans.

The Topix index lifted 2.48 percent to end at 1,088.77. The stock market largely ignored a downgrade of Japan's creditworthiness from rating agency Fitch.

The strongest Asian market on Monday was South Korea. The Kospi, which was already trading at its highest level this year, skyrocketed 4.55 percent to end at 674.56.

That's its highest level in 14 months. Taiwan's market rose to its highest in three months.

Stocks in Australia and New Zealand locked in tidy gains. In fact, almost every market in the Asia Pacific region was up.

Singapore was up more than a percent going into the last hour. Indian stocks were up more than 2 percent in afternoon trade.

Mizuho up in Japan on earnings

In Japan, strong gains for Japan's banks led a broad rally.

Mizuho Holdings, the world's biggest bank by assets, lifted 2.58 percent to 358,000 yen.

After the close of trade, the bank posted a net loss of 265 billion yen ($2.13 billion) for the six months through September.

It also said it would write off 2.0 trillion yen in bad loans this business year, through March. That makes it the latest in a string of banks to get tougher on problem debts, one of Japan's most troubling business issues.

Mitsubishi Tokyo Financial Group, one of Japan's Big Four bank groups, said on Monday it still expects a 20 billion yen ($161 million) profit this year. It is the only Big Four bank to predict a profit.

The Japanese yen has lost ground, and was trading at 124.37 to the U.S. dollar on Monday afternoon.

That weakness boosted the stocks of major exporters, which see their overseas revenues rise and their products get cheaper.

Weak yen helps

Japan's No. 3 carmaker Honda Motor Co. climbed 4.94 percent to 4,890 yen. Office-equipment maker Canon Inc. put on 5.3 percent to 4,180 yen.

Electronics maker Sony Corp., which gets one third of sales in the United States, ended up 3.7 percent at 5,900 yen for the day.

That helped other tech stocks, with chipmaker Fujitsu rising 3.24 percent to 1,052 yen.

In Australia, the benchmark S&P/ASX 200 index posted a 0.47 percent rise to 3,348.5.

The country's largest telecom, Telstra, was very active, rallying 2.4 percent to A$5.45, its highest in five months. An increase in mobile-phone costs is expected to boost its profits.

Banking stocks, which have in the last week come off record highs, resumed their rise with modest gains.

Miners moving in Australia

Merger speculation was moving mining stocks again, though there were no firm deals. BHP Billiton rose 5 cents to A$9.75. Rio Tinto gained 50 cents to A$35.10.

In New Zealand, the benchmark NZSE-40 Capital index closed up 0.3 percent at 1,172.22.

Recent listing Fisher & Paykel Healthcare jumped 4.2 percent to NZ$17.70 after climbing 16 percent last week.

Telecom New Zealand fell 1.0 percent to NZ$4.73, which surprised some investors since Telstra climbed in Australian trade.

South Korea's strong showing took the Kospi to its highest close since September 6 last year.

Market participants noted heavy buying from overseas buyers. They were climbing in after third-quarter data last week showed Korea's economy performed better than most of Asia.

Financials were prime beneficiaries, with Korea's largest brokerage, Samsung Securities, rising 8.1 percent to 47.900 won.

Big cap stocks, which tend to attract the most overseas attention, also had a good day.

Seoul's largest listing, Samsung Electronics, ended up 3.60 percent at 230,000 won. Cell-phone carrier SK Telecom finished up 2.79 percent at 295,00 won.

Taiwan up on overseas buying

Taiwan's Taiex rose to its three-month high on U.S. stock gains - Nasdaq rose 1.5 percent on Friday - and further easing of relations with mainland China.

Taiwan said late last week it would start allowing visits from Chinese tourists who are living overseas.

Overseas investors were also buying Taiwanese stocks like contract chip maker United Microelectronics, up 2.4 percent to T$38.70.

Chipset maker VIA Technologies gained 4.7 percent to T$124 after a legal victory in the United States in its patent fight with Intel Corp.

Hong Kong's Hang Seng index ended up 0.77 percent at 11,409.84.

Property stocks performed particularly well, with Cheung Kong Holdings climbing 1.6 percent to HK$79.50.

It clung onto its rise, while buying in other blue chips lagged as the day went on. China's mobile-phone leader, China Mobile, ended up 0.55 percent at HK$27.60.

In China, stocks were off around half a percent on profit taking.

Singapore's Straits Times index was up 1.3 percent at 1,477.28 shortly before the end of trade.

In India, a speculative rise was holding up as stocks went into afternoon trade. Mumbai's market was up 2.25 percent.

Reuters contributed to this report.