Dipo Olowookere
By Investors Hub
Asian stocks ended broadly higher on Monday as commodity prices advanced, Chinese inflation data for September met expectations and finance ministers from around the world expressed their desire for lower interest rates at a weekend meeting of the International Monetary Fund.
US crude futures jumped to hover near a six-month high on concerns over potential renewed U.S. sanctions against Iran as well as conflict in Iraq. The dollar changed hands in the upper 111-yen zone, while gold prices eased on a firmer dollar.
Japanese shares hit a fresh 21-year high as the yen stayed flat against the dollar amid expectations that Shinzo Abe will win another majority in the House of Representatives election on October 22nd. The Nikkei 225 Index climbed 100.38 points or 0.5 percent to 21,255.56, the highest level since late 1996. The broader Topix Index closed 0.6 percent higher at 1,719.18.
Index heavyweight SoftBank Group rose 1.3 percent after reports it has reached a broad agreement to merge its U.S. unit Sprint with T-Mobile U.S.
Banks Mitsubishi UFJ Financial, Mizuho Financial Group and Sumitomo Mitsui Financial rose between 1.4 percent and 1.6 percent.
Australian shares rose notably, led by material stocks after base metals prices rallied broadly last week on the back of strong Chinese import data.
The benchmark S&P/ASX 200 Index advanced 32.60 points or 0.6 percent to a five-month high of 5,846.80, while the broader All Ordinaries Index ended 32.50 points or 0.6 percent higher at 5,917.20.
Mining heavyweights BHP Billiton and Rio Tinto rallied 2-3 percent, Mineral Resources jumped 4.2 percent and Galaxy Resources soared 7.3 percent.
Gold miner Evolution Mining advanced 1.8 percent after reporting increased production during the September quarter.
Energy stocks also saw widespread gains after crude oil futures rallied nearly 2 percent on Friday amid hopes for strong demand from the U.S. and China.
Meanwhile, Chinese shares ended slightly lower even as inflation figures matched forecasts and People’s Bank of China Governor Zhou Xiaochuan said the economy is set to achieve 7 percent growth in the second half of the year on rapid growth in household consumption.
The benchmark Shanghai Composite Index dropped 12.05 points or 0.4 percent to 3,378.47, dragged down by technology stocks. Hong Kong’s Hang Seng Index climbed 216.37 points or 0.8 percent to 28,692.80.
