Asian markets mostly rise, stimulus hopes lift

HONG KONG: Most Asian markets rose on Tuesday as bargain hunters moved in following the previous day's losses, with Shanghai and Hong Kong up on stimulus hopes but Tokyo hit by a stronger yen.

With the corporate earnings season approaching, dealers were taking a cautious approach, while a cut in growth forecasts for the regional and world economy by the International Monetary Fund (IMF) also weighed.

Hong Kong jumped 1.16 percent and Shanghai advanced 1.98 percent, while Sydney climbed 0.58 percent and Seoul added 0.46 percent but Tokyo fell 0.36 percent by the break.

Monday saw markets around the world slump on concerns about the eurozone, with Spain still refusing to ask for a bailout and Greece deadlocked in talks with its creditors over its next tranche of rescue funds.

In Shanghai, dealers were betting that China's leaders will unveil a fresh set of measures to boost the economy, especially with a date for a handover of power pencilled in for early next month.

The composite index fell on Monday owing to disappointment over manufacturing data that came out last week, when traders were on holiday. The government's purchasing managers' index edged up to 49.8 in September from 49.2 in August -- a slight improvement but still below the 50 mark, indicating contraction.

"The latest economic data, albeit weak, did show signs of stabilisation, and that gives investors some confidence," Shenzhen Zhongzheng Investment Consulting analyst Zhang Suoqing said.

"Expectations are heightened that more stimulus measures will be introduced."

The upbeat outlook had a knock-on effect for Hong Kong, marking its sixth gain in seven sessions.

However, shares in Tokyo, which was closed Monday for a public holiday, slipped as the yen, which rose in New York against the euro on European debt fears, hurt exporters.