Asia surges, Nikkei closes up 5.9%

HONG KONG, China -- Asian markets ended Monday with stellar gains, boosted by improved sentiment that followed big jumps in U.S. shares.

In Japan, the benchmark Nikkei index closed 5.9 percent higher, while Seoul was at a 20-month high.

The Nikkei 225 average ended up 638.22 points, or 5.9 percent, at 11,450.22, for its highest close in six months. The broader capital-weighted Topix rose 48.87 points, or 4.74 percent, to 1,079.04.

Investors took inspiration from Wall Street's performance. They also saw the failure of debt-ridden builder Sato Kogyo Co Ltd as a sign that Japanese banks are speeding up their disposal of bad loans.

Mizuho, the world's largest banking group by assets, jumped 14.23 percent to 297,000 yen while Sumitomo Mitsui rose 9.55 percent at 562 yen. UFJ Holdings soared 13.65 percent at 333,000 yen.

Japan's leading mobile phone company NTT Docomo rose 7.04 percent at 1.52 million yen.

Electronics giant Sony Corp rose 4.15 percent at 6,530, while rival Kyocera gained 7.01 percent at 8,850 yen.

In the auto sector, Japan's leading carmaker Toyota Motor rose 6.38 percent at 3,670 yen. Its rival Honda Motor added 6.31 percent at 5,730 yen.

Tokyo shares are also expected to gain more ground by the end of the business year on March 31, helped in part by the government's stringent regulations on short selling.

20-month high

Seoul shares closed at a 20-month high, lifted by telecoms. That came on upbeat U.S. economic data and a poll that showed South Korean business confidence at a record high.

The Kospi closed up 1.73 percent to 834.21, while the over-the-counter Kosdaq rallied 5.50 percent to end at 83.04.

South Korea's largest fixed-line and Internet service company KT Corp rose 6.17 percent to a 10-month closing high of 61,900 won, while wireless giant SK Telecom bounced 6.54 percent to 277,000 won.

In Australia, shares closed modestly higher as investors remained quietly confident about the market's outlook.

The latest domestic data and encouraging profit result by supermarket leader Woolworths indicates that consumer spending is supporting Australia's own economic performance.

The S&P/ASX 200 index closed up 7.0 points, or 0.2 percent, at 3,424,3,

Data released on Monday with 1.4 percent surge in January retail sales showed that Australian consumers have returned to the shops.

But the Bureau of Statistics said Australia's current account deficit more than doubled in the December quarter.

The Reserve Bank of Australia is also expected to keep interest rates on hold when its policy-making board meets on Tuesday.

Woolworths rallied 2.9 percent to A$12.49 on a better than expected first half net profit rise of 24 percent to A$295.5 million. Rival grocer and retailer Coles Myer rallied 1.9 percent to A$8.61.

The banking sector was weaker, led down by a 1.4 percent slide to A$35.00 in National Australia Bank.

Technology up

In Taiwan, shares shot up more than three percent, powered by the technology sector.

The main Taiex ended the day up 193.70 points, or 3.41 percent, at 5,874.48.

Taiwan Semiconductor Manufacturing Co, the world's largest contract chip maker, advanced the daily seven percent trading limit to T$86.50, boosted by a 7.14 percent rally in its ADRs on Friday.

Rival United Microelectronics Corp was also limit-up at T$50.00. Its ADRs gained nearly nine percent on Friday, boosted by the 11-percent jump on the Philadelphia Stock Exchange semiconductor index.

In Hong Kong, blue chips pushed the market higher.

Investors awaited the release of full year results for global banking giant HSBC Holdings and Hang Seng Bank.

The benchmark Hang Seng index was up 2.67 percent at 10,704.12 points.

HSBC rose 1.46 percent to HK$86.75, while its 62-percent-held subsidiary Hang Seng Bank gained 1.75 percent at HK$87.25.

In Singapore, shares roared higher as electronics contract maker Venture Manufacturing led a surge by blue chips after its better than expected earnings last week.

The Straits Times Index was up 3.36 percent at 1,779.43 points near the close.

Venture, Singapore's largest electronics contract manufacturer, was up S$2.40 at S$17.10.

DBS Group and OCBC Bank were both up 50 cents at S$14.00 and S$13.00 respectively, while United Overseas Bank added 60 cents to S$14.60.

Singapore Airlines rose 3.73 percent to S$13.90, while Singapore Telecommunications rose three cents at S$1.66.