Asian markets end firm

Asian markets ended the week on an upbeat note supported by gains in Japanese manufacturing shares on reports that companies would resume production and rally in Chinese banking shares.
 
Investor sentiment was upbeat after US markets logged gains on encouraging earnings outlook by technology companies. Japan's Nikkei Stock Average closed the week at 9536.13, up 1.1%, posting weekly gain of 3.6%. However, investors would closely watch the developments at Japan's troubled nuclear power plant.

Foreign investors' net buying of Japanese shares reached a record high in the week after a devastating earthquake hit northeastern Japan, Ministry of Finance data showed, while Japanese investors bought foreign bonds despite widespread speculation that they would repatriate funds.

Overseas investors bought a net 891 billion yen ($11 billion) in Japanese stocks in the week of March 14-18, the highest since records began in 2005.Some analysts said that foreign buying may continue before the ex-dividend date on March 28."There was selling pressure around the 9,500-mark (in the past few days), but we may see the index top this level, supported by buying by investors who want dividends," said Hideyuki Okoshi, general manager at Chibagin Securities.

Hang Seng advanced 1.1% buoyed by banking shares after Bank of China posted positive earnings.  Shanghai Bank’s profit for 2010 surged 29%. The Hang Seng index closed at 23,158.67.  The Shanghai Composite index strengthened 1.1% to 2,977.81.

Among other Asian markets South Korea's Kospi Composite advanced 0.9%, Taiwan's weighted index climbed 0.4% and Singapore's Strait Times edged up 0.9%.

The gains were extended to European markets as bullish macroeconomic and company signals vied for attention, shunning away concerns over the euro zone sovereign debt situation and violence in Libya. The CAC 40 Index was up 0.3%, Germany’s DAX gained 0.7% and France FTSE was up 0.6%.