Asian stocks fell for a fourth week on concern the global economy was slowing, sending the region, along with Europe, into a bear market.
The regional benchmark ended the week lower even as its biggest two-day drop in 18 years was pared after the US Federal Reserve cut borrowing costs and lawmakers agreed on a plan to stimulate the world's biggest economy. Mitsubishi UFJ Financial Group Inc led gains among banks.
The MSCI Asia Pacific Index fell 0.6 percent this week, its fourth straight weekly decline. The measure plunged 10 percent in the first two trading days of this week, the steepest drop since April 1990. It regained most of its loss after the Fed on Tuesday cut its benchmark rate in its first emergency reduction since 2001.
PHOTO: AFP
Prior to the rate cut on Tuesday, Asian and European stock indexes had tumbled more than 20 percent from their recent highs, entering bear markets on concern the US will fall into recession. A 20 percent decline defines a bear market.
TAIPEI
Taiwanese share prices closed 2.96 percent higher, dealers said.
The weighted index closed up 222.54 points at the day's high of 7,739.59 on turnover of NT$118.14 billion (US$3.66 billion).
"Technology stocks in particular applauded the firmer showing of their US counterparts overnight," said Mao Jen-chieh (毛仁傑), president of Pro Standard Capital Management (禮正證券投顧).
"Until lately Taiwanese exporters were being battered by worries about the prospects of their largest market, the US," Mao said.
TOKYO
Japanese share prices closed up 4.1 percent, with a three-day rebound picking up steam after US political leaders reached a deal aimed at warding off recession, dealers said.
The Tokyo Stock Exchange's benchmark Nikkei-225 index ended up 536.38 points at 13,629.16. The broader TOPIX index of all-first section shares gained 60.32 points, or 4.7 percent, to 1,344.77. The Nikkei is still down 1.68 percent from a week ago and nearly 11 percent since the start of the year.
SYDNEY
Australian share prices closed up 5 percent, dealers said.
The benchmark S&P/ASX 200 closed up 279.9 points at 5,860.3. The broader All Ordinaries ended the day up 280.5 points at 5,886.3.
HONG KONG
Hong Kong share prices closed up 6.7 percent, dealers said.
The Hang Seng index closed up 1,583.10 points at 25,122.37.
"The Hong Kong market can be likened to a casino these days," said Eugene Law from Celestial Asia Securities Holdings. "Some hedge funds have been picking on rumors and almost every bit of bad or positive news to move the key index by 1,000 points or more in one day."
SHANGHAI
Chinese share prices closed up 0.93 percent, dealers said.
The benchmark Shanghai Composite index, which covers both A and B shares, closed up 43.95 points to 4,761.69.
The Shanghai A-share index rose 0.94 percent to 4,997.67. The Shenzhen A-share index was up 0.44 percent at 1,509.64.
The Shanghai B-share index rose 0.13 percent to 321.11. The Shenzhen B-share index rose 2.94 percent to 657.47.
SEOUL
South Korean share prices closed up 1.8 percent, dealers said.
The KOSPI index ended up 29.41 points at 1,692.41.
SINGAPORE
Singapore share prices closed 3.59 percent higher, dealers said.
The blue-chip Straits Times index rose 109.39 points at 3,159.48.
KUALA LUMPUR
Malaysian share prices closed 1.6 percent higher, dealers said. The Kuala Lumpur Composite Index (KLCI) closed up 22.05 points.
BANGKOK
Thai share prices closed 4.27 percent higher, dealers said. The Stock Exchange of Thailand (SET) composite index jumped 31.14 points to 759.72 and the blue-chip SET-50 gained 26.30 points to 547.37.
MANILA
Philippine share prices closed 2.9 percent higher, dealers said. The composite index rose 89.99 points to close at 3,237.41. The broader all-share index advanced 42.21 points, or 2.2 percent, to 1,981.39.
MUMBAI
Indian share prices surged 6.62 percent, dealers said.
The benchmark 30-share SENSEX index soared 1,139.92 points to 18,361.66, its biggest single-day point gain.
EARLY TALKS: Measures under consideration include convincing allies to match US curbs, further restricting exports of AI chips or GPUs, and blocking Chinese investments US President Donald Trump’s administration is sketching out tougher versions of US semiconductor curbs and pressuring key allies to escalate their restrictions on China’s chip industry, an early indication the new US president plans to expand efforts that began under former US president Joe Biden to limit Beijing’s technological prowess. Trump officials recently met with their Japanese and Dutch counterparts about restricting Tokyo Electron Ltd and ASML Holding NV engineers from maintaining semiconductor gear in China, people familiar with the matter said. The aim, which was also a priority for Biden, is to see key allies match China curbs the US
The popular Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) arbitrage trade might soon see a change in dynamics that could affect the trading of the US listing versus the local one. And for anyone who wants to monetize the elevated premium, Goldman Sachs Group Inc highlights potential trades. A note from the bank’s sales desk published on Friday said that demand for TSMC’s Taipei-traded stock could rise as Taiwan’s regulator is considering an amendment to local exchange-traded funds’ (ETFs) ownership. The changes, which could come in the first half of this year, could push up the current 30 percent single-stock weight limit
NOT TO WORRY: Some people are concerned funds might continue moving out of the country, but the central bank said financial account outflows are not unusual in Taiwan Taiwan’s outbound investments hit a new high last year due to investments made by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and other major manufacturers to boost global expansion, the central bank said on Thursday. The net increase in outbound investments last year reached a record US$21.05 billion, while the net increase in outbound investments by Taiwanese residents reached a record US$31.98 billion, central bank data showed. Chen Fei-wen (陳斐紋), deputy director of the central bank’s Department of Economic Research, said the increase was largely due to TSMC’s efforts to expand production in the US and Japan. Investments by Vanguard International
‘SACRED MOUNTAIN’: The chipmaker can form joint ventures abroad, except in China, but like other firms, it needs government approval for large investments Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) needs government permission for any overseas joint ventures (JVs), but there are no restrictions on making the most advanced chips overseas other than for China, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. US media have said that TSMC, the world’s largest contract chipmaker and a major supplier to companies such as Apple Inc and Nvidia Corp, has been in talks for a stake in Intel Corp. Neither company has confirmed the talks, but US President Donald Trump has accused Taiwan of taking away the US’ semiconductor business and said he wants the industry back
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