Asian stocks advance on optimism despite dire news (Bloomberg) (22-01-2009)

Jan. 22 (Bloomberg) -- Stocks in Asia ended the session higher, led by financial and drug companies, on signs the U.S., Japan and China are stepping up efforts to ease the global financial crisis.

The Nikkei 225 in Japan gained 1.9 percent, while Hong Kong’s Hang Seng Index added 2.1 percent. All markets in the region rose except Pakistan.

Among losers, Sony Corp. forecast its first annual loss in 14 years after markets closed today. Hitachi High-Technologies Corp., a Japanese electronics trader, plunged 7.8 percent after cutting its profit forecast. Newcrest Mining Ltd., Australia’s largest gold mining company, lost 3.5 percent on higher production costs.

HSBC climbed 5.3 percent to HK$57.90 in Hong Kong, while Mitsubishi UFJ Financial Group Inc., Japan’s biggest lender, added 0.8 percent to 487 yen.

National Australia Bank Ltd., the nation’s largest by assets, gained 2.8 percent to A$18.11. 

North China Pharmaceutical Co. surged 3.9 percent to 7.73 yuan in Shanghai, while Harbin Pharmaceutical Group Co. rose 4 percent to 12.05 yuan. China’s central and local governments will invest in healthcare spending over three years, according to a statement on the central government’s Web site.

China Petroleum & Chemical Corp., the nation’s second- biggest oil producer, jumped 4 percent to HK$4.38 in Hong Kong after saying it boosted crude-oil processing by 4.5 percent last year on higher domestic demand.

Policy makers at the Bank of Japan today kept the key overnight lending rate unchanged at 0.1 percent by a unanimous vote.

Japan’s December exports slumped 35 percent both due to the global slowdown and the stronger yen. Among exporters hurt by the slump, Toyota Motor Corp. slid 4.2 percent to 2,855 yen. Sony may have to close TV factories in Japan.

Source: Bloomberg