Asian Shares Advance In Thin Holiday Trade

Asian stocks rose in thin trade on Tuesday, with Chinese, Hong Kong and Seoul markets closed for the Chinese New Year break.

Underlying sentiment was supported after the Wall Street put up a strong show overnight, led by gains in technology stocks.

Japanese shares finished modestly higher after data showed manufacturing activity in the country grew at the fastest pace in nearly eight years in January and unemployment unexpectedly fell in December.

The Nikkei average edged up 76.50 points, or 0.28 percent, to 27,078.48, after rising as much as 1.5 percent earlier in the session. The broader Topix index closed marginally higher at 1,896.06.

Tech stocks followed their U.S. peers higher, with Advantest and Tokyo Electron rising 1-2 percent. TDK soared 11.2 percent after the electronic component maker raised its profit outlook for the second time this year.

Shionogi & Co jumped 10.3 percent after disclosing that its oral antiviral drug for Covid-19 was found to be effective in a study. Retailer Seven & i Holdings climbed 4.4 percent on reports it plans to offload its department unit.

Australian markets eked out modest gains after the country’s central bank lifted its key rate unchanged at a record low but decided to cease the further purchases under the bond purchase program.

Advocating patience on the case for interest rate increases, Reserve Bank governor Philip Lowe said the bank will not increase the cash rate until actual inflation is sustainably within the 2 to 3 percent target range.

The benchmark S&P/ASX 200 index rose 34.40 points, or 0.49 percent, to 7,006, led by banks and gold miners. The broader All Ordinaries index ended up 44.50 points, or 0.61 percent, at 7,312.80.

Gold miner Newcrest Mining jumped 3.5 percent and Northern Star Resources added 2.2 percent. Mining heavyweights led losses, with BHP and Rio Tinto falling 2-3 percent.

Building materials maker Boral soared 5.8 percent after announcing it would return A$3 billion to shareholders.

In economic releases, Australia’s manufacturing recovery stalled over the Christmas holiday period and retail sales sank in December while demand for mortgages picked up further in the month, separate reports showed.

New Zealand shares had their best session since early December 2021, with the benchmark NZX-50 index climbing 169.54 points, or 1.43 percent, to 12,058.94 after a tumultuous January on concerns about the outlook for higher interest rates. Gains were seen across the board, with heavyweight Fisher & Paykel Healthcare rallying 4.5 percent.

U.S. stocks ended the last trading day of January on a high note but still chalked up the worst month since March 2020.

Markets surged for a second day as traders continued to pick up tech stocks at reduced levels following positive analyst comments.

The tech-heavy Nasdaq Composite rallied as much as 3.4 percent, while the Dow rose 1.2 percent and the S&P 500 added 1.9 percent.

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