Asian stocks were mostly higher in holiday-thinned trade Friday after surprisingly upbeat earnings in the U.S., but Japanese banks tumbled on fresh worries about their balance sheets amid the country's crippling recession, AP reported. Japan's mega lenders got pummeled after Sumitomo Mitsui Financial Group warned investors that it sank into the red in the just-ended fiscal year. To shore up its capital position, the country's No. 3 bank said it was moving to issue new shares. The news contrasted sharply with financials in the U.S., where stocks surged overnight after Wells Fargo & Co. surprised the market with a hugely positive profit report. The banking giant _ the recipient of some $25 billion in funds as part of the government's bank bailout plan _ said it expected to post first-quarter earnings of $3 billion, far above analyst forecasts. With a number of high-profile banks set to unveil their first quarter earnings next week, investors were relieved by the report and took it as a sign that troubles in the country's ailing financial industry may be nearing an end. «The performance was better than expectations so everyone is thinking the financial sector is getting better,» said Christian Jin, who helps oversee $1.2 billion in assets as head of global investment at CJ Asset Management in Seoul. «A lot of people were worried about next week's earnings, but with the report investors are thinking there will be no problems with the financial companies.» Stock markets in Hong Kong, Singapore, India, New Zealand, Indonesia, the Philippines and Australia were closed for a public holiday. In Japan, the Nikkei 225 stock average gained 49.05 points, or 0.5 percent, to 8,961.11 _ its highest closing level since Jan. 7 even as gains were checked by losses among banking stocks. After trading closed, Japanese Prime Minister Taro Aso unveiled a new stimulus package, calling for 15 trillion yen ($150 billion) in government spending to lift the world's second-largest economy from its painful recession. Shares of Sumitomo, the smallest of Japan's three mega banks, faced a glut of sell orders and remained untraded for much of the day before plunging 13.9 percent. Its rivals also fared badly. Mizuho Financial Group Inc. shed 9.6 percent while Mitsubishi UFJ Financial Group, Japan's biggest bank, lost 1 percent. Tokyo's biggest winner of the day was Pioneer Corp., which skyrocketed 27 percent on news that it will form a joint venture with Sharp Corp. Other major exporters climbed as the dollar held above the key 100-yen level. Nissan Motor Co. advanced 4.9 percent and Sony Corp. added 4.2 percent. South Korea's Kospi climbed 19.69 points, or 1.5 percent, to 1,336.04. Shanghai's main index rose 2.7 percent to 2,444.23. Markets in Taiwan and Maylasia also gained. Thailand's stock benchmark rose 1.2 percent despite antigovernment protests causing gridlock in parts of Bangkok while another group of demonstrators converged on an Asian leaders summit in Pattaya, a beachside town about 140 kilometers (87 miles) southeast of the capital.
