Asian stocks rose for a third week, its longest streak of weekly advances since July last year, as manufacturing growth from China to the US stoked optimism the global economy would withstand Europe’s sovereign-debt crisis.
“Markets are a lot more comfortable with the US economy at this point,” said Belinda Allen, a Sydney-based senior investment analyst at Colonial First State Global Asset Management. “Europe is going to be a headwind with all the bond auctions coming up.”
The MSCI Asia Pacific Index rose 0.5 percent to 114.39 this week on rising factory activity in Australia, China, India and the US and as China’s oil companies surged on market reforms and the prospect of lower taxes. The gauge pared gains at the end of the week as France faced higher borrowing costs at a bond auction and Greek Prime Minister Lucas Papademos said the country must cut spending to avoid economic collapse.
Taiwan’s TAIEX ended up 0.7 percent this week to close at 7,120.51 on Friday.
The Shanghai Composite Index slid 1.6 percent this week, extending losses for a ninth week, the longest such streak since June 2004, on concern government tightening measures are making it hard for small businesses to borrow money. The gauge rose on Friday afternoon amid renewed speculation the central bank would lower banks’ reserve-requirement ratios.
Hong Kong’s Hang Seng Index added 0.9 percent. Australia’s S&P/ASX 200 gained 1.3 percent as the better outlook for manufacturing boosted commodity producers.
Japan’s Nikkei 225 Stock Average decreased 0.8 percent this week as the euro fell to an 11-year low against the yen, clouding the earnings outlook for exporters. South Korea’s KOSPI rose 1 percent.
The MSCI Asia-Pacific gauge declined 17 percent last year as energy, financial and raw material companies declined amid Europe’s worsening debt crisis, US lawmakers’ bickering over how to reduce that country’s deficit and China’s efforts to curb inflation.
In other markets on Friday:
Manila closed 0.79 percent, or 35.55 points, lower from Thursday at 4,483.36.
Wellington ended 0.93 percent, or 30.69 points, lower from Thursday at 3,253.43.
Mumbai added 10.65 points, or 0.07 percent, to 15,867.73 from Thursday in lackluster trade.
AI AIM: The chipmaker wants joint research and development programs with the Czech Republic, and the government is considering supporting investments in a Czech location Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is planning to build more plants in Europe with a focus on the market for artificial intelligence (AI) chips as the chipmaker expands its global footprint, a senior Taiwanese official said. “They have started construction of the first fab in Dresden; they are already planning the next few fabs in the future for different market sectors as well,” National Science and Technology Council (NSTC) Minister Wu Cheng-wen (吳誠文) told Bloomberg TV in an interview that aired yesterday. Wu did not specify a timeline for TSMC’s further expansion in Europe. TSMC in an e-mailed statement said it
AVIATION: Despite production issues in the US, the Taoyuan-based airline expects to receive 24 passenger planes on schedule, while one freight plane is delayed The ongoing strike at Boeing Co has had only a minor impact on China Airlines Ltd (CAL, 中華航空), although the delivery of a new cargo jet might be postponed, CAL chairman Hsieh Su-chien (謝世謙) said on Saturday. The 24 Boeing 787-9 passenger aircraft on order would be delivered on schedule from next year to 2028, while one 777F freight aircraft would be delayed, Hsieh told reporters at a company event. Boeing, which announced a decision on Friday to cut 17,000 jobs — about one-tenth of its workforce — is facing a strike by 33,000 US west coast workers that has halted production
Advanced Micro Devices Inc (AMD) suffered its biggest stock decline in more than a month after the company unveiled new artificial intelligence (AI) chips, but did not provide hoped-for information on customers or financial performance. The stock slid 4 percent to US$164.18 on Thursday, the biggest single-day drop since Sept. 3. Shares of the company remain up 11 percent this year. AMD has emerged as the biggest contender to Nvidia Corp in the lucrative market of AI processors. The company’s latest chips would exceed some capabilities of its rival, AMD chief executive officer Lisa Su (蘇姿丰) said at an event hosted by
WEAK DEMAND: A further decline in China’s consumer price index has prompted renewed calls for fiscal stimulus before deflationary expections become entrenched China’s consumer inflation unexpectedly eased last month, while producer price deflation deepened, heightening pressure on Beijing to roll out more stimulus measures quickly to revive flagging demand and shaky economic activity. Chinese Minister of Finance Lan Foan (藍佛安) told a news conference on Saturday there would be more “counter-cyclical measures” this year, but officials did not provide details on the size or timing of the fiscal stimulus being prepared, which investors hope would ease deflationary pressures in the world’s second-largest economy. The consumer price index (CPI) rose 0.4 percent from a year earlier last month, the slowest in three months, compared with