The Wall Street Journal: Chinese shares climb, bucking region's trend

HONG KONG -- Chinese stock markets jumped, bucking declines across much of Asia as investors generally preferred to await further word on negotiations over the U.S. government's $700 billion rescue plan for the financial sector.

The jump in Shanghai came after China Unicom raised its stake in China United Telecommunications, raising hopes that more mainland firms could buy back shares to support beaten-down valuations.

The Shanghai Composite gained 3.6% to 2297.50. China United Telecommunications gained 2.5%, adding to Wednesday's 7.7% surge, after its parent raised its stake to 60.97%, from 60.74%. China Unicom intends to buy as much as 2% of China United's shares.

"The market sentiment in the mainland markets has been steadily improving as some corporations are directly purchasing shares. Strong turnover in Shanghai and Shenzhen suggests the markets are stabilizing, and we could see more gains," said Patrick Yiu, associate director at CASH Asset Management in Hong Kong.

State-owned blue chips recorded the biggest gains. Baoshan Iron & Steel climbed 7.5%, and China Life Insurance jumped 7.9%.

In Hong Kong, the Hang Seng Index eased 0.1% to 18934.43. Bank of East Asia gained 3.4% as tycoon Li Ka-shing bought into the lender, and a run on the bank showed signs of abating. The stock had skidded 6.9% on Wednesday.

In Tokyo, the Nikkei Stock Average of 225 companies fell 0.9% to 12006.53. Mitsubishi UFJ Financial Group gave up 2%. Shipping firms were among the biggest decliners, with selling triggered by the overnight drop in the industry's benchmark Baltic Dry Index. Nippon Yusen lost 5.7%, and Mitsui O.S.K. Lines sank 6.3%.

Australia's S&P/ASX 200 shed 1.1%. BHP Billiton lost 3.9% as metals prices remained weak.

In Mumbai, the 30-stock Sensitive Index, or Sensex, fell 1.1% to 13547.18. S. Tulsian, a member of India's National Stock Exchange, said the weakness was linked to the expiration of September derivative contracts Thursday as well as uncertainty hovering over the U.S. bailout proposal.

"Investors are not willing to take risks and are happy with the index trading in a range. The upcoming earnings season is also expected to throw some mixed results," he said.