Bargain hunting help Asian stocks

A bout of bargain-buying after recent losses caused by last week's rate hike by the US Federal Reserve combined with gains on Wall Street to send most Asian stocks higher yesterday.
However, Chinese investors, returning from a week-long Lunar New Year holiday, weighed credit tightening moves from Beijing as local stocks ended lower in choppy trade.
Japan's Nikkei jumped 2.74 percent, or 276.89 points, to 10,400.47 as earlier concerns following the US Federal Reserve move receded. The market recorded its biggest gain since December 3.
Hong Kong jumped 2.43 percent, or 483.25 points to end at 20,377.27.
Sydney closed 1.78 percent, or 82.4 points, higher at 4,717.5.
Markets in Asia were hit Friday after the Fed announced it would hike the primary credit rate on emergency loans to banks to 0.75 percent from 0.5 percent.
Despite the bank stressing the move did not signal a broader tightening of policy, dealers sold up fearing a drying up of credit.
"Caution prevailed in markets Friday following the Federal Reserve's surprise move to cut its discount rate. But that sense of vigilance has now eased," said Daiwa Securities Capital Markets equity chief Kazuhiro Takahashi.
Investors were given some cheer by a 0.09 percent gain on Wall Street Friday as fears over the Fed's move were soothed by New York Fed President William Dudley, who said it "is not at all a signal of any imminent tightening".
Among the gainers yesterday were resources stocks as crude jumped past 80 dollars a barrel due to a strike at French energy giant Total as well as tensions over Iran's nuclear programme.
New York's main futures contract, light sweet crude for delivery in March, was up 36 cents at 80.17 dollars a barrel in afternoon trade.
Brent North Sea crude for April delivery gained 40 cents to 78.59.
In Australia BHP Billiton added 2.83 percent and Rio Tinto rose 2.13 percent.
The euro gained in Asian trade on speculation that Europe may provide billions of dollars in aid to Greece to help it overcome its debt crisis, dealers said, following reports over the weekend.
The euro firmed to 1.3633 dollars in Tokyo afternoon trade from 1.3608 in New York late Friday, and to 124.91 yen from 124.62. The dollar was higher at 91.62 yen from 91.57.
Shanghai fell 0.49 percent, or 14.74 points, lower at 3,003.40 after the first session following the break as dealers took in central bank moves on February 12 to tighten liquidity as well as new lending curbs at the weekend.
The People's Bank of China said the deposit reserve ratio – the minimum amount of money banks must keep in stock – would be raised by 50 basis points as of February 25, the second reported increase since the start of the year.
And at the weekend the China Banking Regulatory Commission told financial institutions to tighten risk controls and curb loans for projects in overheated sectors such as property.
Taipei, which was also closed last week for the new year holiday, ended up 1.59 percent, or 118.20 points, at 7,560.04.
Hong Kong gold ended at 1,126.50-1,127.50 US dollars an ounce, up from Friday's close of 1,105.00-1,106.00 dollars.

In other markets:

•Singapore closed flat, edging up 0.32 points to 2,757.46.
Dealers mostly ignored a budget due to be released later in the day.
"Singapore's 2010 budget, to be announced today [yesterday], is not expected to give equities a short-term boost," said DBS Vickers securities.
Shipping firm Neptune Orient Lines climbed nine cents to 1.75 Singapore dollars, while property giant CapitaLand shed 14 cents to 3.76.
• Seoul closed 2.08 percent, or 33.20 points, higher at 1,627.10.
• Wellington added 0.73 percent, or 22.67 points, to 3,129.75.
Auckland Airport ended up 1.6 percent at 1.88 New Zealand dollars, while Contact Energy rose 1.7 percent to 5.80.
• Kuala Lumpur closed up 0.70 percent, or 8.77 points, at 1,266.44.
"There were across-the-board gains today with buying of selected blue chips and rotational plays like latex glove makers and some tech stocks," a dealer said.
Rubber glove-maker Supermax gained 5.10 percent to 5.75 ringgit while semi-conductor maker Unisem rose 5.30 percent to 2.20. Retail group Parkson lost 2.20 percent to 5.35.
• Jakarta ended 0.39 percent, or 9.88 points, up at 2,564.26.
• Manila rose 1.24 percent, or 37.06 points, to 3,015.59.
"Investors are hunting for bargains, looking forward for better growth this year," said Ron Rodrigo, research head at DBP-Daiwa Securities.
Ayala Land added 4.7 percent to 11.25 pesos after projecting stronger sales this year, while Philippine Long Distance Telephone added 1.4 percent to 2,585.
• Bangkok closed 0.77 percent, or 5.36 points, higher at 705.80.
Banpu added 2.00 baht to 530.00 baht and PTT Plc gained 3.00 baht to 227.00. (AFP)