Nikkei:10,464.42 (+119.31) Hang Seng:23,788.83 (–12.95) Shanghai Comp:2,677.43 (–12.95)

SHARES IN Tokyo had their best day in two weeks yesterday, as earnings optimism on Wall Street bolstered hopes for the forthcoming earnings season in Japan.

Among companies reporting earnings this week, NEC climbed 3.4 per cent to ¥246 and Canon rose 0.7 per cent to ¥4,120.

Banks were also in demand as foreign investors continued to focus on the sector’s relative cheapness, traders said.

Mitsubishi UFJ rose 2.9 per cent to ¥454 and Sumitomo Mitsui Financial added 1.4 per cent to ¥2,934.

Australian stocks also had a strong session as muted inflation figures encouraged the view that interest rates would be left on hold for some time.

Retailers were among the day’s gainers, with Woolworths rising 1.6 per cent to A$27.18 and Myer up 1.1 per cent to A$3.69.

By contrast, Mumbai retreated as the country’s central bank raised rates by 25 basis points to a two-year high. The BSE Sensex index fell 1 per cent to 18,969.45, as ICICI Bank tumbled 4.2 per cent to Rs1,038.30 and Tata Motors fell 1.9 per cent to Rs1,165.30. – (Copyright The Financial Times Limited 2011)