Asia stocks higher after PBOC injects cash; Nikkei ends up 1%

Investing.com - Asian stock markets were broadly higher on Tuesday, with shares in mainland China and Hong Kong rebounding after the People’s Bank of China injected liquidity into the financial system.

During late Asian trade, Hong Kong's Hang Seng Index rose 0.6%, China’s Shanghai Composite index climbed 0.9%, Australia’s ASX/200 Index closed 0.69% higher, while Japan’s Nikkei 225 Index ended up 0.99%.

China’s central bank added CNY255 billion to the financial system and expanded a loan facility to meet Lunar New Year demand for cash, easing concerns over a credit squeeze.

Shares in mainland China have been under pressure in recent weeks amid concerns that a flurry of new initial public offering listings will lead to a share glut and hurt liquidity.

In Hong Kong, the Hang Seng was higher as gains in the financial sector boosted the benchmark index.

China Construction Bank jumped 3%, Industrial and Commercial Bank of China rose 2.7%, while China Minsheng Bank and Agricultural Bank of China advanced 2.1% and 2.4% respectively.

Meanwhile, in Australia, the ASX/200 Index reversed earlier losses to close higher as shares in the financial sector provided support.

National Australia Bank and Commonwealth Banking Group rose 1% apiece, while ANZ Banking Group and Westpac Banking Group added 0.9% and 0.8% respectively.

Elsewhere, in Tokyo, the Nikkei snapped a three-day losing streak after the yen weakened against the U.S. dollar, boosting sentiment.

USD/JPY rose to hit a daily high of 104.68, moving off the previous session’s low of 103.85. A weaker yen increases the value of overseas income at Japanese companies when repatriated, boosting the outlook for export earnings.

Toyota saw shares rise 1.5%, Sharp added 4.4%, while index heavyweights Fast Retailing and Fanuc climbed 2.9% and 1.9% respectively.

Looking ahead, European stock market futures pointed to a higher open. The EURO STOXX 50 futures pointed to a gain of 0.4% at the open, France’s CAC 40 futures added 0.35%, London’s FTSE 100 futures indicated a rise of 0.2%, while Germany's DAX futures pointed to an increase of 0.3%.

Across the Atlantic, U.S. equity markets also pointed to a higher open. The Dow Jones Industrial Average futures pointed to a gain of 0.35%, S&P 500 futures inched up 0.4%, while the Nasdaq 100 futures indicated a rise of 0.5%.