Asian stocks had their biggest weekly advance this month on speculation that companies’ earnings will withstand credit-market losses and slowing global growth, and after China reduced an equity-trading tax.
Sumitomo Mitsui Financial Group Inc rose after Citigroup Inc posted a loss that was smaller than analysts had estimated. Japan’s Nidec Corp, Samsung Electronics Co in South Korea and Air China Ltd led gains among companies that reported higher profits. Citic Securities Co (中信證券) surged in Shanghai, helping China’s benchmark CSI 300 index to its biggest weekly rally on record.
“The market is more ready for good news than bad news,” said Nicole Sze, a Singapore-based investment analyst at Bank Julius Baer & Co who manages US$350 billion in assets. “We have seen better-than-expected earnings from some of the larger companies and Citigroup’s results have helped to give a leg up to the market.”
The MSCI Asia-Pacific Index gained 4.9 percent to 149.23, its biggest weekly advance since the five days ended March 28. The MSCI gauge has rebounded 12.3 percent since closing at a two-month low on March 17, after JPMorgan Chase & Co rescued Bear Stearns Cos and the Federal Reserve cut interest rates to shore up confidence in the financial system.
The MSCI Asia-Pacific Financial Index surged 4.51 percent, the best performance among the regional benchmark’s 10 industry groups, even as increased credit losses at Credit Suisse Group and Bank of America Corp this week trimmed some gains.
Investors are nervously waiting for key numbers next week, including US economic growth figures and more corporate earnings data.
The markets in Australia and New Zealand were shut.
TAIPEI
Taiwanese share prices closed 0.47 percent lower, dealers said.
The weighted index closed down 42.50 points at 8,947.83 on turnover of NT$149.52 billion (US$4.93 billion).
Michael Hsu (�?@) at Taiwan Life Asset Management (台壽保投信) said expectations of improved economic ties with China had already been priced in by the market.
“Old-economy stocks had enjoyed a bounce on [policy] deregulation hopes since the presidential election” and there is now mounting profit-taking pressure, he said.
TOKYO
Japanese share prices closed up 2.38 percent at a two-month high, lifted by gains on Wall Street and a weaker yen which gave a boost to exporters, dealers said.
The benchmark Nikkei-225 index climbed 322.60 points to end at 13,863.47. The broader TOPIX index of all first-section shares advanced 32.34 points or 2.47 percent to 1,339.91.
“The extremely pessimistic view about the US economy appears to be gone,” said Fumiyuki Nakanishi, chief strategist at SMBC Friend Securities.
HONG KONG
Hong Kong share prices closed down 0.64 percent, dealers said.
The Hang Seng index closed down 164.0 points at 25,516.78.
“China-related stocks led the falls following a weak close on mainland bourses, and on profit-taking after four straight days of gains,” said Peter Lai, sales director at DBS Vickers.
SEOUL
South Korean shares closed 1.4 percent higher, dealers said. The index ended up 25.34 points at 1,824.68.
Investors shrugged off downbeat quarterly South Korean economic growth figures.
“The market is poised for further upside potential. 1,900 points appears to be pretty realistic now,” said Kim Young-jun, an analyst at SK Securities.
SINGAPORE
Singaporean shares closed up 0.4 percent, dealers said.
The Straits Times index finished up 11.65 points at 3,189.20.
“There is still a nagging fear that although the worst is likely over, the market will [still] undergo a correction in May-June,” Najeeb Jarhom at AmFraser Securities said.
SHANGHAI
Chinese share prices closed mixed with Shanghai down 0.71 percent, dealers said.
The benchmark Shanghai Composite index, which covers A and B shares, closed down 25.28 points at 3,557.75.
The index surged almost 10 percent on Thursday, the biggest one-day rise in more than six years.
“There are still many uncertainties in the market, including inflation concerns. It may be hard for the key index to rebound above 4,000,” said Hu Yu, an analyst at ChinaLion Securities.
The Shanghai A-share index was down 0.71 percent to 3,732.85. The Shenzhen A-share index gained 1.46 percent to 1,110.48.
The Shanghai B-share index gained 0.57 percent to 256.61. The Shenzhen B-share Index lost 1.36 percent to 569.82.
KUALA LUMPUR
Malaysian shares closed down 0.4 percent, dealers said.
The Kuala Lumpur Composite Index was down 5.0 points at 1,288.08.
“The market took a pause today after relatively high trading volumes in recent sessions,” Phua Kwee Hock at SJ Securities said.
BANGKOK
Thai share prices closed 0.25 percent lower, dealers said.
The Stock Exchange of Thailand (SET) composite index slipped 2.12 points to 832.19, while the blue-chip SET 50 index fell 1.90 points to 598.33.
“The market fell slightly today because foreign investors sold their stocks, mainly for profit taking in major stocks,” Sukit Udomsirikul at Siam City Securities said.
JAKARTA
Indonesian shares closed 1.3 percent lower, dealers said.
The Jakarta composite index was down 29.40 points at 2,240.58.
“Our market has fallen by about 3.5 percent in just two days. The main reason behind the market’s sharp fall was the trending up of the inflation rate,” Batavia Prosperindo analyst Santikno Suherman said.
MANILA
Philippine share prices closed 2.3 percent lower, dealers said.
The composite index fell 66.09 points to 2,777.93 points. The all-share index lost 26.11 points or 1.5 percent to 1,730.66.
“Market liquidity is also drying up, indicating that there is absolutely no more interest in the market,” Francisco Liboro of PCCI Securities said.
MUMBAI
Indian share prices closed up 2.42 percent, dealers said.
The benchmark Mumbai 30-share SENSEX index rose 404.9 points to 17,125.98.
“A fresh wave of buying was seen in index stocks. Banking stocks rose on expectations that the [central bank] may not hike rates further,” Hiten Mehta at Fortune Financial Services said.
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