Asian stocks rose as agreement on formal talks between protesters and Hong Kong officials boosted shares in the city. Japan's Topix index slid as the yen climbed after the Bank of Japan refrained from adding stimulus.
China Mobile added 1.1 per cent, providing the biggest boost to Hong Kong's Hang Seng Index. Rio Tinto Group surged 4.3 per cent in Sydney, the most in more than a year, after saying it rejected a merger approach from Glencore Plc that would have created the world's largest miner. Sony Corp, a maker of consumer electronics, dropped 1.2 per cent in Tokyo. The MSCI Asia Pacific Index added 0.2 per cent to 139.44 as of 6:52 pm in Hong Kong. The Hang Seng Index gained 0.5 per cent at the close after sinking 2.6 per cent last week, the biggest such drop since March, after police used tear gas and pepper spray in attempts to quell demonstrations in the city. Markets reopen tomorrow in China after the Golden Week holiday.
Hong Kong's "market is still continuing its rebound from last week," said William Fung, investment manager at Tanrich Securities Co. in Hong Kong. "The political situation is better compared to last week, though the market may not be able to rebound further as uncertainty continues." Japan's Topix slipped 0.4 per cent. The Bank of Japan kept its pledge to increase the monetary base at an annual pace of 60 trillion yen to 70 trillion yen ($644 billion), in line with all 33 economists surveyed by Bloomberg News. The yen climbed 0.1 per cent to 108.73 after strengthening 0.9 per cent yesterday, the biggest gain since April. South Korea's Kospi index added 0.2 per cent. Taiwan's Taiex Index lost 0.6 per cent, and Singapore's Straits Times Index declined 0.3 per cent.
