Asian stocks rose, led by financial companies and automakers, after G20 finance ministers vowed to combat the global recession and OPEC refrained from cutting output quotas to bolster economic growth.
Mitsubishi UFJ Financial Group Ltd, Japan’s biggest publicly traded bank, rose 6 percent as corporate bond risk fell following a pledge by G20 officials for coordinated action to clean up banks’ toxic assets. Mazda Motor Corp, Japan’s No. 4 carmaker, jumped 9.8 percent on optimism that production will rebound.
“People in the market have calmed down and started noticing authorities worldwide are doing what they can to revive the global economy and restore the financial system,” said Kiyoshi Ishigane, a strategist at Tokyo-based Mitsubishi UFJ Asset Management Co, which oversees about US$61 billion.
The MSCI Asia Pacific Index rose 1.4 percent to 75.77 as of 1:47pm in Tokyo, with about three stocks gaining for each one that declined. Japan’s Nikkei 225 Stock Average climbed 2 percent to 7,722.41, while Hong Kong’s Hang Seng Index gained 1 percent.
Markets in Asia rose except in South Korea, China, Singapore, Indonesia, Malaysia, Thailand and the Philippines.
Foxconn International Holdings Ltd (富士康), the world’s biggest contract maker of mobile phones, gained 7.7 percent in Hong Kong following a brokerage upgrade.
Futures on the Standard & Poor’s 500 Index fell 0.9 percent. The benchmark gauge rose 0.8 percent on Friday, capping an 11 percent rally for the week, as takeover speculation lifted health care companies.
The MSCI Asia Pacific Index rose 3.9 percent last week, its best performance this year. The gauge is down 16 percent this year, extending last year’s record 43 percent drop as the global recession decimated profits at companies from Mazda to Canon Inc, the world’s top maker of digital cameras.
Estimated earnings for companies included in the benchmark are down 66 percent from a year ago, data compiled by Bloomberg show. Companies on the index trade at an average of 1.1 times book value, near its October record low of 1 times book.
The Bank of Japan is considering buying subordinated debt from banks to shore up capital, the Nikkei Shimbun reported.
The cost of protecting investors in Asian bonds from default fell after the G20’s weekend pledges. The Markit iTraxx Japan index of credit-default swaps dropped 5 basis points, Barclays Capital prices showed. The Markit iTraxx Asia index of 50 investment-grade borrowers outside Japan also lost 5 basis points, ICAP Plc said.
Mazda, partly owned by Ford Motor Co, climbed 9.1 percent to ¥156 (US$1.59). The company will resume full production at two domestic plans in July, the Nikkei Shimbun said on Saturday.
Foxconn gained 7.7 percent to HK$2.66 (US$0.34) in Hong Kong after Macquarie Group raised its rating for the stock to “outperform” from “neutral” because it expects the company to return to profit this year.
HSBC, which is raising US$17.7 billion from a rights offering, rose 1.2 percent to HK$38.70 in Hong Kong.
COMPETITION: AMD, Intel and Qualcomm are unveiling new laptop and desktop parts in Las Vegas, arguing their technologies provide the best performance for AI workloads Advanced Micro Devices Inc (AMD), the second-biggest maker of computer processors, said its chips are to be used by Dell Technologies Inc for the first time in PCs sold to businesses. The chipmaker unveiled new processors it says would make AMD-based PCs the best at running artificial intelligence (AI) software. Dell has decided to use the chips in some of its computers aimed at business customers, AMD executives said at CES in Las Vegas on Monday. Dell’s embrace of AMD for corporate PCs — it already uses the chipmaker for consumer devices — is another blow for Intel Corp as the company
STIMULUS PLANS: An official said that China would increase funding from special treasury bonds and expand another program focused on key strategic sectors China is to sharply increase funding from ultra-long treasury bonds this year to spur business investment and consumer-boosting initiatives, a state planner official told a news conference yesterday, as Beijing cranks up fiscal stimulus to revitalize its faltering economy. Special treasury bonds would be used to fund large-scale equipment upgrades and consumer goods trade-ins, said Yuan Da (袁達), deputy secretary-general of the Chinese National Development and Reform Commission. “The size of ultra-long special government bond funds will be sharply increased this year to intensify and expand the implementation of the two new initiatives,” Yuan said. Under the program launched last year, consumers can
TECH PULL: Electronics heavyweights also attracted strong buying ahead of the CES, analysts said. Meanwhile, Asian markets were mixed amid Trump’s incoming presidency Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) shares yesterday closed at a new high in the wake of a rally among tech stocks on Wall Street on Friday, moving the TAIEX sharply higher by more than 600 points. TSMC, the most heavily weighted stock in the TAIEX, rose 4.65 percent to close at a new high of NT$1,125, boosting its market value to NT$29.17 trillion (US$888 billion) and contributing about 400 points to the TAIEX’s rise. The TAIEX ended up 639.41 points, or 2.79 percent, at 23,547.71. Turnover totaled NT$406.478 billion, Taiwan Stock Exchange data showed. The surge in TSMC follows a positive performance
FUTURE TECH: Nvidia CEO Jensen Huang would give the keynote speech at this year’s Consumer Electronics Show, which is also expected to highlight autonomous vehicles Gadgets, robots and vehicles imbued with artificial intelligence (AI) would once again vie for attention at the Consumer Electronics Show (CES) this week, as vendors behind the scenes would seek ways to deal with tariffs threatened by US president-elect Donald Trump. The annual Consumer Electronics Show opens formally in Las Vegas tomorrow, but preceding days are packed with product announcements. AI would be a major theme of the show, along with autonomous vehicles ranging from tractors and boats to lawn mowers and golf club trollies. “Everybody is going to be talking about AI,” Creative Strategies Inc analyst Carolina Milanesi said. “From fridges to ovens
RSS