Asian stocks fell for a second week, led by exporters and financial firms on concern losses linked to US subprime mortgages will spread and damp growth in the region's biggest export market.
Toyota Motor Corp declined after US retail sales slumped and homebuilder confidence remained at a low. Mitsubishi UFJ Financial Group Inc and Commonwealth Bank of Australia dropped and Goldman Sachs Group Inc said it was "cautious" about the outlook for its own business.
"Slowing US demand will hurt Asian exporters as well as other industries because of the massiveness of the US economy," said Kevin Yang (
PHOTO: AFP
The MSCI Asia-Pacific Index declined 2.1 percent this week to 153.47. It lost 4.7 percent last week after a US interest-rate cut failed to ease concerns that the US may slide into a recession. For the year, the measure is up 9.2 percent, set for its smallest annual gain in five years.
Taiwan's TAIEX index fell 2.2 percent this week to end the week 19 percent lower than this year's closing high on Oct. 29, a decline widely regarded as signaling a bear market. The index's gain of 1.5 percent this year makes it Asia's fourth-worst performer, behind Japan, Sri Lanka and New Zealand.
"This is certainly a bear market," said Michael On (洪瑞泰), who oversees US$100 million as managing director at Beyond Asset Management Co in Taipei. "To many people it may feel like the world is crashing. Stocks have more to fall before the condition of the global economy becomes clear."
Jakarta and Mumbai were closed for public holidays.
TAIPEI
Taiwanese share prices closed 1.07 percent higher on Friday, with sentiment buoyed by Wall Street's firmer tone overnight. The weighted index closed up 84.36 points at 7,941.44, on turnover of NT$100.44 billion (US$3.09 billion).
While margin call pressure briefly dragged down the index in early trade, bargain hunters focusing on bellwether technology stocks pushed it to a firmer close, dealers said.
TOKYO
Japanese share prices rebounded 1.5 percent as bargain hunters waded into the market after the key NIKKEI index dipped briefly below the key 15,000 points level.
Dealers said sentiment was boosted by a report of a tie-up between electronics giants Toshiba and Sharp in liquid-crystal displays (LCDs).
The NIKKEI-225 index ended up 225.40 points at 15,257.00. Volume rose to 1.98 billion shares from 1.67 billion on Thursday.
HONG KONG
Hong Kong share prices closed 2.26 percent higher led by the property sector as housing sales are expected to remain strong next year.
The Hang Seng index closed up 609.83 points at 27,626.92, off a low of 27,192.80 and a high of 27,670.31.
SYDNEY
Australian share prices ended a seven-day losing streak to close up 1.1 percent, with major banks leading the way on speculation a Chinese government agency had bought stakes in them.
The S&P/ASX 200 closed up 70.1 points at 6,247.0.
SHANGHAI
Chinese share prices closed 1.15 percent higher, led by airlines and metal companies, with investors shrugging off the latest interest rate hike.
The Shanghai Composite Index closed up 58.24 points to 5,101.78.
SEOUL
South Korean share prices closed 1.8 percent higher after a volatile session, with banks leading the rebound on hopes that ownership restrictions will be eased under the new government.
The KOSPI index ended 33.95 points higher at 1,878.32.
SINGAPORE
Singapore share prices closed 1.21 percent higher as investors sought out bargains after a recent selloff.
The Straits Times Index closed up 40.76 points at 3,398.10.
MANILA
Philippine shares closed 1.2 percent higher a day after the central bank trimmed its key interest rates to slow the peso's rise against the US dollar.
The composite index rose 41.02 points to 3,532.98.
KUALA LUMPUR
Malaysian share prices closed up 1.2 percent due to gains in key blue chips, but trading volumes were thin ahead of the year-end holidays.
The composite index was up 16.35 points at 1,403.56. Volume was 636.24 million shares.
BANGKOK
Thai share prices closed 2.76 percent higher, lifted by steady gains across the region and a sharp rise in local energy-linked stocks.
The composite index rose 21.89 points to 813.60.
WELLINGTON
New Zealand share prices rose 1.16 percent, as investors welcomed gains in offshore markets.
The NZX-50 index rose 45.95 points to close at 3,993.51.
MULTIFACETED: A task force has analyzed possible scenarios and created responses to assist domestic industries in dealing with US tariffs, the economics minister said The Executive Yuan is tomorrow to announce countermeasures to US President Donald Trump’s planned reciprocal tariffs, although the details of the plan would not be made public until Monday next week, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. The Cabinet established an economic and trade task force in November last year to deal with US trade and tariff related issues, Kuo told reporters outside the legislature in Taipei. The task force has been analyzing and evaluating all kinds of scenarios to identify suitable responses and determine how best to assist domestic industries in managing the effects of Trump’s tariffs, he
TIGHT-LIPPED: UMC said it had no merger plans at the moment, after Nikkei Asia reported that the firm and GlobalFoundries were considering restarting merger talks United Microelectronics Corp (UMC, 聯電), the world’s No. 4 contract chipmaker, yesterday launched a new US$5 billion 12-inch chip factory in Singapore as part of its latest effort to diversify its manufacturing footprint amid growing geopolitical risks. The new factory, adjacent to UMC’s existing Singapore fab in the Pasir Res Wafer Fab Park, is scheduled to enter volume production next year, utilizing mature 22-nanometer and 28-nanometer process technologies, UMC said in a statement. The company plans to invest US$5 billion during the first phase of the new fab, which would have an installed capacity of 30,000 12-inch wafers per month, it said. The
Taiwan’s official purchasing managers’ index (PMI) last month rose 0.2 percentage points to 54.2, in a second consecutive month of expansion, thanks to front-loading demand intended to avoid potential US tariff hikes, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. While short-term demand appeared robust, uncertainties rose due to US President Donald Trump’s unpredictable trade policy, CIER president Lien Hsien-ming (連賢明) told a news conference in Taipei. Taiwan’s economy this year would be characterized by high-level fluctuations and the volatility would be wilder than most expect, Lien said Demand for electronics, particularly semiconductors, continues to benefit from US technology giants’ effort
‘SWASTICAR’: Tesla CEO Elon Musk’s close association with Donald Trump has prompted opponents to brand him a ‘Nazi’ and resulted in a dramatic drop in sales Demonstrators descended on Tesla Inc dealerships across the US, and in Europe and Canada on Saturday to protest company chief Elon Musk, who has amassed extraordinary power as a top adviser to US President Donald Trump. Waving signs with messages such as “Musk is stealing our money” and “Reclaim our country,” the protests largely took place peacefully following fiery episodes of vandalism on Tesla vehicles, dealerships and other facilities in recent weeks that US officials have denounced as terrorism. Hundreds rallied on Saturday outside the Tesla dealership in Manhattan. Some blasted Musk, the world’s richest man, while others demanded the shuttering of his