Stocks in Hong Kong and Australia jumped to multi-month highs Wednesday as Asian markets began their 2013 journey on a buoyant note after the U.S. House of Representatives voted in favor of legislation to undo much of the fiscal cliff. Hong Kong’s Hang Seng Index  rallied 2.9% to 23,311.98 and Australia’s S&P/ASX 200  gained 1.2% to 4,705.90, pushing both indexes to their highest finish since June 2011. South Korea’s Kospi  jumped 1.7% and Taiwan’s Taiex rose 1%. All four markets, which were on their first trading day of 2013, held their gains after the House voted 257-to-167 in favor of a Senate-approved deal to undo tax hikes and spending cuts that began going into effect at the start of the year. “Regardless whether the U.S. bill looks like a flimsy stop-gap, the risk rally was very strong,” said Woon Khien Chia, head of Asian emerging markets research. More»

European stock markets rallied at the open on Wednesday on news U.S. lawmakers reached a last-minute budget deal. Europe tracked gains in Asia, where Hong Kong’s Hang Seng index surged 1.9%, toward levels not seen since June 2011. Led by banking and energy stocks, the Stoxx Europe 600 index jumped 1.4% to 283.57. The German DAX 30 index rose 2% to 7,770.47, the French CAC 40 index jumped 1.9% to 3,709.34 and the FTSE 100 index rose 1.4% to 5,989.78. Heavyweight gainers included a 1.7% rise for HSBC Holdings PLC and a 1.9% rise for energy group Total SA . More»

European stock markets moved broadly lower in thin Friday trading, after U.S. policy makers remained stymied over a budget deal but left the door open to further negotiations aimed at averting the so-called fiscal cliff. The Stoxx Europe 600 index  fell 0.7% to close at 278.78, and closed out the week 0.8% lower. Banks were among the benchmark’s major decliners in Friday’s trading. U.S. stocks also traded lower on Wall Street. “Focus today will remain on U.S. budget negotiations, and the market will be quite sensitive to news flow regarding the fiscal cliff,” analysts at Danske Bank said. “However, as a small deal will probably not tackle the debt ceiling, political uncertainty is set to remain high next year,” they wrote in a note. “Hence a small deal just before deadline is not likely to cause big relief in the market.” More»

Japan's Nikkei average rose to a 21-month high on Friday, heading for its best yearly gain since 2005, as exporters were buoyed by a weaker yen on expectations of aggressive monetary stimulus under new Prime Minister Shinzo Abe. Export-focused firms leading the index higher included Toyota Motor Corp (7203.T), Honda Motor Co (7267.T), Canon Inc (7751.T) and Nikon Corp (7731.T), up between 1.2 and 2.4 percent. Index heavyweight and industrial robot maker Fanuc Corp (6954.T) gained 1.7 percent. The Nikkei .N225 advanced 0.9 percent to 10,412.73 in mid-morning of its last trading day of the year, touching its highest level since March 11, 2011 and shrugging off a slump in Japan's factory output in November. "We expect the yen to hit 90, and the Nikkei to reach 11,000 as early as late January or early February," said Shun Maruyama, chief Japan equity strategist at BNP Paribas. "The market is pricing in a new inflation target of 2 percent. However, the problem is how to achieve the target. The market is focusing on what the BOJ will announce in its next meeting." Maruyama said if the Bank of Japan, which is to hold its next policy meeting on January 21-22, fell short of market expectations, investors would take profit. The benchmark Nikkei has rallied 20.2 percent over the past 6-1/2 weeks, on speculation that Abe will pursue policies to weaken the currency, which has hurt Japanese exporters' competitiveness and their overseas earnings when repatriated. The Nikkei is up 23.2 percent this year, on track for its best yearly gain since 2005, while the Japanese currency has lost 12.4 percent against the greenback this year, and is set to post its biggest annual loss since 2005. The yen hit a more than two-year low of 86.64 to the dollar on Friday. The broader Topix .TOPX index gained 0.5 percent to 858.00. Nippon Electric Glass Co (5214.T), however, shed 3.5 percent after the glassmaker cut its earnings forecast for the nine-month period through December, citing a price decline in glasses used in flat panel displays. More»

Asia stocks extended their gains into Wednesday, with most major markets ending higher, and with Japanese shares advancing as the yen hit its lowest levels against the dollar and euro since 2011. In Tokyo, the Nikkei Stock Average  finished 1.5% higher, adding to its 1.4% rally on Tuesday. Singapore’s Straits Times Index  was up 0.5% in late trading, while the Shanghai Composite Index ended with a 0.3% gain after a choppy, range-bound session following its 2.5% surge the previous day. South Korea’s Kospi  and Taiwan’s Taiex  lagged the region, with each closing little changed, while bourses in Hong Kong and Australia remained shut for holiday, with both due to reopen Thursday. The gains for Japanese equities got help from a further decline in the yen, with the currency’s losses accelerating after the minutes from the Bank of Japan’s November meeting showed a dovish tilt and some determination to drive the yen lower. Read: Yen hits year’s low, with other pairs steady More»

Strong gains surfaced in the few Asian stock markets open Tuesday for Christmas, with Tokyo jumping on a weakened yen, and Shanghai rallying on a sharp advance for realtors and banks. Japan’s Nikkei Stock Average  climbed 1.4% as investors returned from a three-day weekend for the Emperor’s Birthday, while Taiwan’s Taiex  advanced 1.3%. The Shanghai Composite Index  opened lower but quickly shot upward to end the day with a 2.5% gain, returning to positive territory for the year for the first time since mid summer. Most other major Asian markets were shut for the holiday, including those in Australia, Hong Kong, Indonesia, Malaysia, the Philippines, Singapore and South Korea. The majority were due to reopen Wednesday, while Sydney and Hong Kong were slated to close until Thursday. More»

Hong Kong stocks rose in light volume early Monday, as recently battered bank shares rebounded in a shortened trading day ahead of the two-day Christmas holiday. The Hang Seng Index gained 0.3% to 22,568.19, while the Hang Seng China Enterprises Index added 0.8%. Over on the Chinese mainland, where the markets will remain open all week, the Shanghai Composite Index improved by 0.4%. Banks gained ground, as HSBC Holdings PLC rose 0.6%, Agricultural Bank of China Ltd. added 1.3%, Industrial & Commercial Bank of China Ltd. climbed 1.1%, and China Merchants Bank Co. gained 1.7%. The lenders’ advance was more muted in Shanghai, where Agricultural Bank traded up 0.4%, while China Merchants and ICBC rose 0.8% apiece. Back in Hong Kong, reported bargain-hunting also helped shares of Esprit Holdings Ltd. snap seven sessions of losses with a 1.3% rise. Improvement for gold futures late last week boosted miner Zijin Mining Group Co. , which added 1.7%. More»

Most Asian markets ended higher Thursday, with Australian stocks shrugging off remarks the nation was unlikely to post a budget surplus this fiscal year to end at a 17-month high, while Japanese shares fell on profit-taking after strong recent gains. The S&P/ASX 200 index  gained 0.4% to 4,634.10 in Sydney, its best closing level in more than 17 months, while China’s Shanghai Composite Index  and Hong Kong’s Hang Seng Index  overcame early losses to finish up 0.3% and 0.2%, respectively. South Korea’s Kospi  climbed 0.3%, as investors returned from a one-day break for an election that ushered in the country’s first female president, Park Geun-hye. “The new president appears likely to increase fiscal stimulus, provide more support to small businesses, and alleviate the burden of household debt. In turn, these initiatives would help sustain domestic demand as the external outlook gradually improves in the coming year,” said HSBC economist Ronald Man. “With fiscal policy set to play a bigger role in supporting growth, there would be less pressure on the Bank of Korea to deliver more rate cuts,” Man said. More»

Japanese stocks surged again Wednesday, sending the benchmark Nikkei Stock Average back over the 10,000-point mark for the first time since early April, while the rest of Asia also gained ground. The Nikkei Stock Average  rose 2.4% to end at a session-high, bringing week-to-date gains to 4.3% and year-to-date gains to a whisker shy of 21%. Elsewhere in Asia, Hong Kong’s Hang Seng Index , rose 0.7%, while the Shanghai Composite Index  edged down 0.2%. Australia’s S&P/ASX 200 index , extended near-17-month highs by rising 0.5%. New Zealand’s NZX 50 climbed 1.2%, while Singapore’s Straits Times Index  and Taiwan’s Taiex  each added 0.2%. The South Korean market was closed for the country’s presidential election. Asian equities got a boost after U.S. stocks ended Tuesday’s session with strong gains, with investors taking heart from fresh signs of progress on a compromise solution to avert the fiscal cliff of tax hikes and spending cuts due to take place next year. More»

European equities kicked off Wednesday’s trading on an upbeat note, led largely, by banks with continued optimism over U.S. fiscal-cliff negotiations inspiring investors. “Sentiment in the market has been consistent with adding risk, as high beta sectors such as financials and insurers continue to outperform into the year’s end,” said David White, financial trader at Spreadex, in emailed comments. The Stoxx Europe 600 index rose 0.2% to 281.05, with shares of BNP Paribas SA up 1%. The German DAX 30 index rose 0.2% to 7,669.65, and the French CAC 40 index gained 0.3% to 3,658.28. The FTSE 100 index rose 0.2% to 5,950.20. More»