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Asian Stock Markets Rally on Wall Street Cues, Earnings Season Results

· 02/05/2021 00:44

05:36 AM EST, 02/05/2021 (MT Newswires) -- Asian stock markets rallied Friday after overnight zeniths on Wall Street and as the unfolding Asian earnings season more often rewarded than disappointed. Hong Kong and Tokyo finished in the green although Shanghai slipped, while other regional exchanges ended higher. The Mumbai Sensex index again closed at an all-time peak, after the Reserve Bank of India held rates steady.

In Japan, the Nikkei 225 opened higher on New York signals and gained in trading, as a generally good earnings season provided support to index members. The yen depreciated against the US dollar, regarded as a positive in export-oriented Japan. Investors also weighed prospects for the Biden Administration's $1.9 trillion fiscal stimulus package.

The Nikkei 225 rose 437.24 to 28,779.19, as gaining issues outnumbered losers 169 to 48.

Leading the upside was Mazda Motor (MZDAY, 7261:Tokyo), up 18.5% after issuing an improved financial outlook.

The Nikkei 225 is up 4.9% year-to-date.

The Tokyo Stock Exchange REIT Index rose 0.4% on the day.

In economic news, Japan household spending fell 5.3% in 2020 from 2019, as the COVID-19 pandemic and related business and travel restrictions cut consumer outlays.

In other news, Japan's beverage-maker Kirin (KNBWY, 2503:Tokyo) disclosed it will end two joint ventures in Myanmar, due to the military coup that took place in the Southeast Asian nation this week.

The Hong Kong Hang Seng Index opened higher but waffled in trading, finishing up 0.6% on strength in casino stocks as tech issues faded. The Hang Seng TECH Index fell back 1%, led by Semiconductor Manufacturing International, aka SMIC (981:HK), which declined 10.6% after reporting softer earnings.

The broad gauge Hang Seng rose 175.18 to 29,288.68, as gaining issues outnumbered loser 30 to 21.

Leading the upside were Macau gaming-houses Galaxy Entertainment (27:HK), up 6.3%, and Sands China (1928:HK), up 4.1%. The casino stocks rose on reports COVID-19 vaccines were being delivered to Macau, the gaming capital of China.

Kuaishou Technology, a China-based short-video social-app operator, closed up 161% in its IPO on the Hong Kong exchange, for a market capitalization of $160 billion.

The Hang Seng is up 7.6% year-to-date.

On the mainland, the Shanghai Composite fell 0.2%.

On the other exchanges, the S. Korean Kospi rose 1.1%; the Taiwan TWSE inclined 0.6%; the Australian ASX 200 inclined 1.1%; the Singapore Straits Times Index rose 0.1%, and the Thai Set inclined 0.9%. In late trading in Mumbai, the Sensex was up 0.2%.