Markets surge on Saddam's capture
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Japanese and Korean carmakers surged on Monday.
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(CNN) -- Asian markets closed sharply higher Monday as investors delivered their first reaction to the capture of former Iraqi President Saddam Hussein.
Japan led the way, with the Nikkei 225 average jumping 3.2 percent to finish at a five-week high. South Korea put on 2 percent.
The dollar is trading at 107.93 yen in Tokyo late Monday, after touching 108.27 yen earlier in the day. It hit a three-year low against the Japanese currency of 106.82 on December 9.
Against the euro, the dollar is at $1.22.01 in Asia. The U.S. currency hit a record low of $1.2306 per euro on Friday, and is down 14 percent this year.
On the Tokyo share market, big Japanese banks powered ahead, with UFJ up more than 9 percent and Mizuho and SMFG posting gains of around 7 percent.
Consumer electronics leader Sony finished 3 percent higher to 3690 yen and Canon, another big exporter, rose 2.9 percent.
Tech-related stocks such as Toshiba, Hitachi and NEC also did well, while automakers Toyota, Honda and Nissan closed firmly in the black.
The Nikkei finished at 10,490.77 and the broader Topix index gained 2.43 percent to 102.95.
South Korea and Taiwan also moved higher, with the Kospi up 1.99 percent to 822.16 and the Taiex up 1.13 percent to 5924.24.
Hong Kong is about half a percent higher and Singapore's Straits Times index is 1.1 percent higher to 1747.46 near the close.
Big Korean exporters Hyundai Motor and Samsung Electronics were among the top gainers in Seoul, reflecting renewed confidence.
Leading bank Shinhan jumped 4.17 percent to 18,750 won.
Stocks in Australia and New Zealand, the first in the world to trade Monday, were also up strongly, with media heavyweight News Corp. 3.3 percent higher and resources giant BHP Billiton jumping 3.6 percent.
The benchmark S&P/ASX200 in Australia closed 1.09 percent higher at 3247.6, while the New Zealand Top 50 put on 0.94 percent to 2406.93.
Analysts expected Saddam's capture would see the price of gold and oil ease initially. In Asia, gold is trading at $404.30 an ounce Monday after going as high as $412.10 late last week.
That led to falls among Australian gold mining shares. Newcrest was down almost 3 percent and AngloGold fell 2 percent to A$12.30.
U.S. crude, which rose above $33 a barrel on Friday, is expected to ease by at least $0.50 a barrel later Monday.
On the equities front, investors in Japan also drew hope from a big improvement in business confidence, as revealed in last Friday's Bank of Japan tankan survey.
The market's biggest stock, mobile phone operator NTT DoCoMo, closed 1.32 percent ahead to 231,000 yen and Vodafone Holdings, the former Japan Telecom, was 3.3 percent higher to 278,000 yen.
European and U.S. stocks are expected to follow suit later Monday. On Wall Street Friday, the Dow Jones industrial average rose 1.82 percent to 10,042.16, its highest closing level since May 24, 2002.
The tech-heavy Nasdaq finished the week up 0.57 percent at 1949.00, below the 2000 level it broke through briefly the previous week.
The Dow is up 20 percent for the year, the S&P 500 is up 22 percent, and the Nasdaq is up 46 percent.
Investors in the United States will focus on Tuesday's Consumer Price Index for the latest read on inflation.
"Initially, there's little doubt that it's a boost for the market," Milton Ezrati, senior economic strategist at fund manager Lord Abbett & Co, told Reuters.
"A major uncertainty has been removed, and it also gives hope that this situation, on a fundamental basis, will improve.
