Asian commodity stocks advanced this week after copper prices rallied and crude oil futures touched a record, overshadowing concern widening credit-market losses will dent earnings growth at financial companies.
BHP Billiton Ltd, the world’s biggest mining company, posted its biggest weekly gain in eight months. Australia & New Zealand Banking Group Ltd slumped after it increased bad-debt provisions. Fukuoka Financial Group Inc fell in Tokyo after reporting profit that missed its own estimates.
“Given the huge potential earnings growth some of these large resources companies face as China continues to grow, it makes them look reasonable buys,” said Hans Kunnen, head of investment market research in Sydney at Colonial First State Global Management, which holds US$128 billion in assets.
“It’s a continual rotation between financial and resources” stocks, he said.
The MSCI Asia Pacific Index was little changed for the week at 145.66, following a two-week, 6.9 percent rally. A measure of energy stocks on the regional benchmark rose 1.1 percent this week, the most of 10 industry groups. The index of financial stocks slumped 1.8 percent.
Japan’s Nikkei 225 Stock Average added 0.2 percent this week, extending a three-week, 8.6 percent jump. Australia’s S&P/ASX 200 Index declined 3.2 percent, its biggest loss in a month. About half of the region’s benchmarks retreated.
TAIPEI
Taiwanese share prices closed 0.91 percent higher, dealers said.
The weighted index closed up 80.18 points at 8,909.58 on turnover of NT$203.18 billion (US$6.71 billion).
Dealers said investors were hoping for better commerical ties with China with Ma Ying-jeou (馬英九) set to take office next month.
“Investors raised exposure to the local bourse given prospects of a capital influx sparked by such cross-strait hopes,” said Tiger Cheng, a strategist at Polaris Securities Co (寶來證券).
TOKYO
Japanese shares surged almost three percent as investors chased bargains after three days of falls, cheered by a rebound on Wall Street overnight and a weaker yen, dealers said.
The benchmark index regained the symbolic 13,000-point level as investors hoped for positive news from finance chiefs from the G7 nations gathering in Washington to discuss ways to ease a global credit crunch.
The benchmark Nikkei-225 index fell gained 378.43 points or 2.92 percent to end at 13,323.73.
The broader TOPIX index of all first-section shares advanced 30.55 points or 2.45 percent to 1,278.62.
HONG KONG
Hong Kong share prices closed up 1.99 percent, dealers said.
The Hang Seng index closed up 480.69 points at 24,667.79.
“China banks contributed a big chunk of the gains today,” said Peter Lai, a director at DBS Vickers, noting strong earnings forecasts.
SYDNEY
Australian shares closed down 0.1 percent, dealers said.
The benchmark S&P/ASX 200 fell 7.1 points to 5,439.3 while the broader All Ordinaries index shed 10.3 points to close at 5,505.2.
SHANGHAI
Chinese share prices closed up 0.61 percent, dealers said.
The benchmark Shanghai Composite Index, which covers A and B shares, closed up 21.15 points at 3,492.89.
The Shanghai A-share Index rose 0.61 percent to 3,664.84. The Shenzhen A-share Index was up 0.94 percent at 1,130.88.
The Shanghai B-share Index rose 0.62 percent to 251.50. The Shenzhen B-share Index gained 0.63 percent to 558.78.
SEOUL
South Korean shares closed 0.9 percent higher, dealers said.
The KOSPI ended 15.07 points higher at 1,779.71.
SINGAPORE
Singapore share prices closed 2.03 percent higher, dealers said.
The Straits Times Index jumped 62.27 points to 3,126.87.
“Beyond the regional markets’ pull, maybe the strengthening of the Singapore dollar has also attracted more money to come here,” said Yeo Kee Yan, a market strategist with DBS Vickers Securities.
KUALA LUMPUR
Malaysian share prices closed 0.1 percent lower, dealers said.
The Kuala Lumpur Composite Index was down 1.4 points at 1,246.79.
BANGKOK
Thai share prices closed 0.75 percent higher, dealers said.
The Stock Exchange of Thailand composite index rose 6.12 points to close at 827.10, and the bluechip SET 50 index gained 4.82 to 594.56.
“The market moved in line with most regional markets and closed in the positive side today, like Hong Kong,” said Kavee Chukitkasem, assistant managing director at Kasikorn Securities.
JAKARTA
Indonesian shares closed 3.0 percent higher, dealers said.
The Jakarta Composite Index was up 68.00 points at 2,303.93.
“I would say today’s sharp gains were purely led by a technical rebound following steep falls in recent days, thanks to the rise in external markets,” Samuel Sekuritas anlayst Christine Salim said.
MANILA
Philippine share prices closed 0.5 percent lower, dealers said.
The composite index lost 14.13 points at 2,940.98. The all-share index fell 7.17 points to 1,804.47.
“It appears that investors are still in a wait-and-see mode because there’s a lot of uncertainty,” Nestor Aguila of DA Market Securities said.
WELLINGTON
New Zealand share prices closed 1.45 percent lower, dealers said.
The NZX-50 gross index fell 51.17 points to 3,488.84.
The fall came after the government rejected a Canadian pension fund’s bid for a significant stake in Auckland International Airport.
MUMBAI
Indian share prices rose 0.72 percent, dealers said. The SENSEX rose 112.54 points to 15,807.64.
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