Asian stocks surged after the US government proposed buying US$700 billion in bank assets and were led higher by financial and commodity companies.
Australia and Taiwan restricted the short selling of equities.
Mitsubishi UFJ Financial Group Inc and Macquarie Group Ltd rose more than 4 percent on the US Treasury’s plans to clean up bank balance sheets. Fortescue Metals Ltd jumped 25 percent after Australia’s regulator banned speculators from borrowing stocks and selling them to profit from falling prices. Bank of China Ltd (中國銀行) led Chinese shares higher after the securities regulator made it easier for companies to buy back stock.
“The positive thing about the Treasury plan is that it addresses the entire system, the bad debts and assets, rather than one by one,” said David Ng, who is buying financial shares for the US$1 billion in assets he helps manage at Hwang-DBS Asset Management Sdn in Kuala Lumpur. “The buying has been triggered by the short-selling bans. That’s been the main driver.”
The MSCI Asia Pacific Index gained 2.8 percent to 117.37 as of 5:23pm in Tokyo, extending Friday’s 5.5 percent jump.
The regional measure tumbled to the lowest in three years last week as the credit crisis forced Lehman Brothers Holdings Inc into bankruptcy. Japan’s Nikkei 225 Stock Average rose 1.4 percent today to 12,090.59.
The US dollar dropped against the yen on concern a US government plan to buy US$700 billion in troubled assets from banks will widen the country’s budget deficit.
The currency reached a three-week low against the euro before reports this week that may show tighter lending rules contributed to a drop in US home sales and durable goods orders.
The greenback also fell against the Swiss franc as two-year Treasury yields declined for the first time in three days on bets the US Federal Reserve will cut interest rates.
“Problems with the US deficit will haunt the dollar,” said Masanobu Ishikawa, general manager of foreign exchange at Tokyo Forex & Ueda Harlow Ltd. “Spending such a large amount on this rescue package will remind traders that the fiscal health of the US is set to worsen.”
The dollar fell to ¥106.05 as of 5:28pm in Tokyo, from ¥107.45 in New York late on Friday. The US currency declined to US$1.46 per euro, the lowest since Sept. 2, and traded at US$1.4575 from US$1.4466. The dollar declined to 1.0965 Swiss francs from SF1.1054. The euro bought ¥154.67 from ¥155.46.
Japan’s 10-year bonds fell on the US government’s plan to revive the country’s financial system by injecting as much as US$700 billion into markets, sending the Nikkei 225 higher for a second day.
The notes snapped two days of gains as the Nikkei 225 climbed 1.4 percent following a 4 percent increase in the Standard & Poor’s 500 Index on Friday.
Nvidia Corp’s demand for advanced packaging from Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) remains strong though the kind of technology it needs is changing, Nvidia CEO Jensen Huang (黃仁勳) said yesterday, after he was asked whether the company was cutting orders. Nvidia’s most advanced artificial intelligence (AI) chip, Blackwell, consists of multiple chips glued together using a complex chip-on-wafer-on-substrate (CoWoS) advanced packaging technology offered by TSMC, Nvidia’s main contract chipmaker. “As we move into Blackwell, we will use largely CoWoS-L. Of course, we’re still manufacturing Hopper, and Hopper will use CowoS-S. We will also transition the CoWoS-S capacity to CoWos-L,” Huang said
Nvidia Corp CEO Jensen Huang (黃仁勳) is expected to miss the inauguration of US president-elect Donald Trump on Monday, bucking a trend among high-profile US technology leaders. Huang is visiting East Asia this week, as he typically does around the time of the Lunar New Year, a person familiar with the situation said. He has never previously attended a US presidential inauguration, said the person, who asked not to be identified, because the plans have not been announced. That makes Nvidia an exception among the most valuable technology companies, most of which are sending cofounders or CEOs to the event. That includes
INDUSTRY LEADER: TSMC aims to continue outperforming the industry’s growth and makes 2025 another strong growth year, chairman and CEO C.C. Wei says Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), a major chip supplier to Nvidia Corp and Apple Inc, yesterday said it aims to grow revenue by about 25 percent this year, driven by robust demand for artificial intelligence (AI) chips. That means TSMC would continue to outpace the foundry industry’s 10 percent annual growth this year based on the chipmaker’s estimate. The chipmaker expects revenue from AI-related chips to double this year, extending a three-fold increase last year. The growth would quicken over the next five years at a compound annual growth rate of 45 percent, fueled by strong demand for the high-performance computing
TARIFF TRADE-OFF: Machinery exports to China dropped after Beijing ended its tariff reductions in June, while potential new tariffs fueled ‘front-loaded’ orders to the US The nation’s machinery exports to the US amounted to US$7.19 billion last year, surpassing the US$6.86 billion to China to become the largest export destination for the local machinery industry, the Taiwan Association of Machinery Industry (TAMI, 台灣機械公會) said in a report on Jan. 10. It came as some manufacturers brought forward or “front-loaded” US-bound shipments as required by customers ahead of potential tariffs imposed by the new US administration, the association said. During his campaign, US president-elect Donald Trump threatened tariffs of as high as 60 percent on Chinese goods and 10 percent to 20 percent on imports from other countries.
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