Sharp gains in U.S. stocks fueled Asian share market rises Thursday, prompting more yen buying despite repeated, suspected intervention to weaken the currency by the Bank of Japan.
Japan's Nikkei index finished up 2.24 percent to 10,593.53, led by banks, up 2.5 percent, and insurers, which rallied 11.6 percent. Investors sought domestically-exposed stocks that would not be hurt by a strong yen. Convenience store Seven-Eleven Japan soared 7.6 percent.
MSCI's dollar-based index of Asian share markets outside of Japan jumped 1.9 percent by 0620 GMT, lagging a 2.52 percent gain on Hong Kong's Hang Seng Index and a 2.12 percent jump on Taiwan's TAIEX.
Traders cited Bank of Japan intervention supporting the dollar in the morning and the afternoon, but after sharp bounces, the dollar plodded back toward its recent lows.
The U.S. unit finished Tokyo trade at 111.04. It rose as high as 111.30 yen after falling earlier to within a half percent of Tuesday's three-year low of 110.10. Since the beginning of August, the dollar has lost 7.6 percent of its value against the yen.
"Even if they intervene at lower levels and cause knee-jerk reactions, fresh selling comes in once the rise stalls," said Hideaki Furumaya, head of the interbank desk at Trust & Custody Services Bank.
The Nihon Keizai Shimbun financial daily reported that Japan's Ministry of Finance was considering expanding the borrowing limit for its foreign exchange account -- the war chest for its yen-selling intervention -- by up to 20 trillion yen ($180.7 billion) from 79 trillion yen currently.
Officials confirmed there were discussion about increasing the limit, but would not say by how much.
The euro rose to three-month highs above $1.1760, up a quarter cent on the day, amid worries about the health of the U.S. economy, and despite better-than-expected U.S. data on Wednesday.
The Dow Jones average and the Standard & Poor's 500 index jumped 2.09 percent and 2.23 percent respectively, their biggest one-day gains since June, boosted by a manufacturing report that was not as weak as had been feared.
The Nasdaq Composite Index rose 2.54 percent after losing more than 2 percent Tuesday.
CAUTION ADVISED
Hong Kong stocks had topping the psychologically important 11,500-point level by midday as property counters rallied on hope that a new money-for-residency scheme from the government will boost real estate sales.
Investors have grown increasingly bullish that the ailing property sector has bottomed out as the economy shows signs of recovery, but some analysts are skeptical about the market gains.
"Property shares are definitely way overheated," said Stephen Pang, deputy managing director at Hunlicar Securities Ltd.
The property sub-index jumped 5.49 percent, led by leading developers Sun Hung Kai Properties Ltd. and Cheung Kong (Holdings) Ltd.
Other Asian traders such as Tu Jin-lung, vice president at Grand Cathay Securities in Taiwan, expressed caution about the rises.
"It is largely because of the rebound in U.S. stocks, but we don't expect the market to rise sharply before we are sure U.S. stocks have stabilized," said Tu.
South Korea's stock market rose 1.55 percent on the back of a 2.13 percent jump in index heavyweight Samsung Electronics, while Australian miners exposed to the U.S. economy led the benchmark S&P/ASX 200 1.27 percent higher to 3176.9.
Singapore's Straits Times Index was 1.4 percent higher by midday, rising to 1,653.71, led by a 3.08 percent jump in Southeast Asia's biggest bank, DBS Group.
NYMEX crude oil futures gave up eight cents to profit-taking, with the key November futures contract falling to $29.35 a barrel.
Spot gold firmed to $385.40 after slipping in New York, with dealers expecting the precious metal to hold in a range of $383 to $385 an ounce.
Japan's Nikkei index finished up 2.24 percent to 10,593.53, led by banks, up 2.5 percent, and insurers, which rallied 11.6 percent. Investors sought domestically-exposed stocks that would not be hurt by a strong yen. Convenience store Seven-Eleven Japan soared 7.6 percent.
MSCI's dollar-based index of Asian share markets outside of Japan jumped 1.9 percent by 0620 GMT, lagging a 2.52 percent gain on Hong Kong's Hang Seng Index and a 2.12 percent jump on Taiwan's TAIEX.
Traders cited Bank of Japan intervention supporting the dollar in the morning and the afternoon, but after sharp bounces, the dollar plodded back toward its recent lows.
The U.S. unit finished Tokyo trade at 111.04. It rose as high as 111.30 yen after falling earlier to within a half percent of Tuesday's three-year low of 110.10. Since the beginning of August, the dollar has lost 7.6 percent of its value against the yen.
"Even if they intervene at lower levels and cause knee-jerk reactions, fresh selling comes in once the rise stalls," said Hideaki Furumaya, head of the interbank desk at Trust & Custody Services Bank.
The Nihon Keizai Shimbun financial daily reported that Japan's Ministry of Finance was considering expanding the borrowing limit for its foreign exchange account -- the war chest for its yen-selling intervention -- by up to 20 trillion yen ($180.7 billion) from 79 trillion yen currently.
Officials confirmed there were discussion about increasing the limit, but would not say by how much.
The euro rose to three-month highs above $1.1760, up a quarter cent on the day, amid worries about the health of the U.S. economy, and despite better-than-expected U.S. data on Wednesday.
The Dow Jones average and the Standard & Poor's 500 index jumped 2.09 percent and 2.23 percent respectively, their biggest one-day gains since June, boosted by a manufacturing report that was not as weak as had been feared.
The Nasdaq Composite Index rose 2.54 percent after losing more than 2 percent Tuesday.
CAUTION ADVISED
Hong Kong stocks had topping the psychologically important 11,500-point level by midday as property counters rallied on hope that a new money-for-residency scheme from the government will boost real estate sales.
Investors have grown increasingly bullish that the ailing property sector has bottomed out as the economy shows signs of recovery, but some analysts are skeptical about the market gains.
"Property shares are definitely way overheated," said Stephen Pang, deputy managing director at Hunlicar Securities Ltd.
The property sub-index jumped 5.49 percent, led by leading developers Sun Hung Kai Properties Ltd. and Cheung Kong (Holdings) Ltd.
Other Asian traders such as Tu Jin-lung, vice president at Grand Cathay Securities in Taiwan, expressed caution about the rises.
"It is largely because of the rebound in U.S. stocks, but we don't expect the market to rise sharply before we are sure U.S. stocks have stabilized," said Tu.
South Korea's stock market rose 1.55 percent on the back of a 2.13 percent jump in index heavyweight Samsung Electronics, while Australian miners exposed to the U.S. economy led the benchmark S&P/ASX 200 1.27 percent higher to 3176.9.
Singapore's Straits Times Index was 1.4 percent higher by midday, rising to 1,653.71, led by a 3.08 percent jump in Southeast Asia's biggest bank, DBS Group.
NYMEX crude oil futures gave up eight cents to profit-taking, with the key November futures contract falling to $29.35 a barrel.
Spot gold firmed to $385.40 after slipping in New York, with dealers expecting the precious metal to hold in a range of $383 to $385 an ounce.
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