Asian markets turned positive in afternoon trading (MarketWatch) (11-03-2008)

HONG KONG (MarketWatch) -- Asian stocks recovered morning losses on Tuesday, as Japanese stocks were led by exporters that gained after the yen weakened against the U.S. dollar.

Australia's leading index fell as shares of miners such as Rio Tinto pulled back, while Australia & New Zealand Bank led a rebound among financial stocks after recent declines. Australia's S&P/ASX 200 eased 46 points, or 0.9%, to 5,134.20

Tokyo's Nikkei 225 Average reversed early losses in the afternoon to close 1% higher at 12,658.28, while the Topix index added 0.9% 1,235.15

In Hong Kong the Hang Seng shot straight back in the afternoon session and closed 1% higher, while the Hang Seng China Enterprises Index was little changed at 12,534.56.

Shares of HSBC Holdings were up 2.2%. Analysts said investors were focused on the share following media reports Monday that the U.K.-headquartered bank may be taking steps to increase its 19% stake in Bank of Communications.

In Sydney, shares of BHP Billiton fell 4.6% while Rio Tinto was off 5.7%.

China shares rebounded as investors digested government data showing consumer prices rose 8.7% in February, the fastest pace of gains in 11 years, as prices for food and energy surged. That bumped up prospects that the central bank will lift interest rates.

Shanghai's Composite Index fell 0.1% and Singapore's Straits Times added 0.7%. Taiwan's Weighted Price Index climbed 1% and Indonesia's Composite Index fell 2.5%.

Elsewhere around the region, New Zealand's NZX-50 fell 0.8%, Thailand's SET was up 0.4%, and India's Sensex added 1.2%.

Among Australian financials, shares of Macquarie Group shed losses to end 2.4% higher while Australia & New Zealand Banking Group added 4.3%.

In Japan, financials and banks were mixed, with Mitsubishi UGJ closing up by 1.76%, Sumitomo gaining 3.19% and Mizuho Financial adding 2.32%.

Source: MarketWatch