Tuesday's Asia ADR Recap: Solar Surge

Shares in mainland China weren't able to escape selling pressure as investors feared Monday's earthquake would cause food prices to rise as supply disruptions are likely.

The Shanghai Composite Index fell 67 points, or 1.8%, to 3,560, and Hong Kong's Hang Seng Index surged 490 points, or 2%, to 25,552.

Shares of Canada-based solar energy company Canadian Solar (CSIQ - Cramer's Take - Stockpickr) soared 19% after the company beat first-quarter profit and revenue estimates, due to strong demand in Europe, China and Canada. The company reported first-quarter net income of $19 million, vs. $3.9 million a year ago and net revenue of $171.2 million, vs. Wall Street estimates for $151.9 million. The company said second-quarter revenue will come in between the range of $185 million to $190 million, well ahead of Street expectations of $167.6 million.

Following the strong results, Lazard Capital Markets analyst Sanjay Shrestha raised the price target on CSIQ to $50. Shares of CSIQ jumped $6.68 to $40.78 on extremely heavy volume.

The Chinese solar sector caught fire Tuesday off the strong results from Canadian Solar. The top of the ADR list was made up of names like ReneSola (SOL - Cramer's Take - Stockpickr), which surged 15% to $21.67; China Sunergy (CSUN - Cramer's Take - Stockpickr), which jumped 8.8% to $10.82; Solarfun Power Holdings (SOLF - Cramer's Take - Stockpickr), which soared 8.3% to $16.19; Yingli Green Energy (YGE - Cramer's Take - Stockpickr), which added 7.7% to $24.34; and Suntech Power (STP - Cramer's Take - Stockpickr), which closed higher by 7.2% to $44.79.

Also in the Chinese solar sector, LDK Solar (LDK - Cramer's Take - Stockpickr) said first-quarter revenues surged 21% due to strong demand for the company's solar wafers. Revenues jumped to $233.4 million, vs. $73.4 million from a year earlier and first-quarter net income surged to $49.8 million, vs. $21.6 million from a year ago. The company said second-quarter sales will come in between the range of $278 million to $288 million, vs. estimates of $247 million and second-quarter revenues will be between $1.08 billion to $1.18 billion, vs. estimates of $1.07 billion. Shares of LDK traded down 4% to $35.94 on twice the average daily volume.