By Laura He, MarketWatch
Japan stocks close above 20,000 for first time in three
weeks
HONG KONG (MarketWatch) -- Chinese stocks posted their biggest
advance in nearly four months on Tuesday, after the government
unveiled guidelines to reform its economic system in 2015, which
includes further opening up capital markets.
The mainland China's benchmark Shanghai Composite Index rose
3.1% to 4,417.55, its highest settlement in two weeks. The index
also marked its biggest daily percentage gain since late
January.
The State Council, China's cabinet, said in a guideline
published on Monday that the country needs deepen the economic
system reform in 2015 by further opening up the financial sector to
both foreign and domestic investors, expanding capital markets, and
intensifying the reform of state-owned enterprises, according to
the Chinese government's official website.
Financial shares rallied across the board, with brokers rising
sharply. Huatai Securities Co. Ltd. , one of China's largest
brokerage firms soared limit-up by 10%, after it kicked off its
Hong Kong initial public offering on Monday, aiming to raise up to
$4.5 billion. Orient Securities Co. Ltd. and Dongxing Securities
Co., Ltd. also surged 10%. Haitong Securities and Citic Securities
Co. Ltd. gained 7.5% and 6.6% respectively.
Banks also recorded a solid advance, with China Merchants Bank
Co., Ltd. spiking 4.6%, and Bank of China Ltd , China Citic Bank
Corporation Ltd. , China Construction Bank Corporation and China
Minsheng Banking Corp., Ltd. all rallying 3%.
Railway stocks jumped, after China's top economic planning
agency said Monday it gave the green light to six rail and subway
projects, with a total investment of close to 250 billion yuan ($40
billion), to spur economic growth. China Communication Construction
Co. Ltd. surged 10%, China Railway Construction Corporation Ltd.
jumped 3.5% and China Railway Group Ltd. climbed 2.6%.
In Hong Kong, the benchmark Hang Seng Index also rose 0.4%, with
the mainland-China-tracking Hang Seng China Enterprises popping
1.9% higher.
In other Asian markets, Japan's Nikkei Average also advanced
0.7% to 20,026.38, back above 20,000 for the first time in three
weeks. The index had risen for a third day in a row. The broader
Topix added 0.4%.
Then yen (USDJPY) weakened a little against the greenback, with
the dollar buying Yen120.04, compared to Yen119.67 at the previous
Tokyo stock close.
Elsewhere, Seoul's Kospi Composite Index tacked on 0.3%, while
Sydney's S&P/ASX 200 fell 0.8%.
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