Asian stocks rose, snapping a four-week loss as commodity producers climbed along with metals and oil, and on speculation the US government will prevent the collapse of Fannie Mae and Freddie Mac.
BHP Billiton Ltd and Mitsubishi Corp climbed after oil jumped more than US$5 a barrel on Friday and zinc advanced the most since February.
Mizuho Financial Group Inc led banks higher after the New York Times said the government may take over the two largest buyers of US home loans and guarantee their debt, reducing the risk of further credit-market losses.
“People are comforted to see that some action is being taken,” said Angus Gluskie, who helps oversee the equivalent of US$500 million at White Funds Management in Sydney. “It eliminates one of the risks that they’re concerned about: the risk that we’ll get a breakdown of a big player in the marketplace.”
The MSCI Asia-Pacific Index rose 0.4 percent to 132.89 at 7:51pm Tokyo time, reversing a drop of 0.7 percent. A measure of raw-materials producers had the biggest gain among the 10 industry groups.
The MSCI Asian gauge had slumped 12 percent in the prior four weeks as oil climbed to a record, eroding earnings for manufacturers and deterring consumer spending, and as concerns over credit losses rekindled. The world’s largest banks and securities firms have posted writedowns and credit losses of more than US$400 billion as the US housing market collapsed, sparking turmoil in financial markets.
TAIPEI
Taiwanese share prices are expected to stay rangebound next week ahead of US corporate quarterly results, dealers said on Friday.
While the market staged a technical rebound on Friday, helping the index hold well above the key 7,000-point level, market sentiment remains cautious amid fears of further volatility on Wall Street and rising inflation, they said.
It is possible for the bourse to test 7,000 points again or even fall to 6,900 points next week amid uncertainty, while a technical rebound is likely during the trade with resistance seen at around 7,500 points, dealers said.
For the week to Friday, the weighted index closed up 16.35 points or 0.23 percent at 7,244.76 after a 4.24 percent fall a week earlier. The TAIEX gained 2.39 percent from Thursday.
Despite a 2.39 percent increase in one single session on Friday, it remains to be seen whether the recent slump has been reversed, President Securities Co (統一證券) analyst Steven Huang said.
“Old problems have not been resolved yet,” Huang said, referring to high energy prices and possible turbulence on US markets. “US corporate results are adding new uncertainty to the market.”
TOKYO
Japanese share prices on Friday closed down 0.21 percent from Thursday, slipping for the first day in three on renewed concerns about the fallout from the US credit crunch, dealers said.
The Tokyo Stock Exchange’s benchmark Nikkei-225 index dropped 27.52 points to 13,039.69. The broader TOPIX index of all first-section shares slipped 4.85 points or 0.38 percent to 1,285.91.
HONG KONG
Hong Kong share prices closed up 1.7 percent on Friday, dealers said. The benchmark Hang Seng Index was up 362.77 points at 22,184.55.
SYDNEY
Australian shares closed 0.9 percent higher, dealers said. The benchmark S&P/ASX 200 closed up 42.5 points at 4,979.9 while the broader All Ordinaries ended 47.3 points higher at 5,067.8.
SHANGHAI
Chinese share prices closed down 0.65 percent, dealers said. The benchmark Shanghai Composite Index, which covers both A and B shares, closed down 18.82 points at 2,856.63.
SEOUL
South Korean share prices closed 2.0 percent higher, dealers said. The KOSPI index closed up 30.08 points at 1,567.51.
SINGAPORE
Singapore share prices closed 0.87 percent higher, dealers said. The blue-chip Straits Times Index finished 25.26 points higher at 2,926.84.
MANILA
Philippine share prices closed 0.5 percent lower, dealers said. The composite index shed 12.63 points to 2,437.99.
MUMBAI
Indian shares closed 3.28 percent lower, dealers said. The benchmark Mumbai 30-share SENSEX index fell 456.39 points to 13,469.85.
CHANGE OF MIND: The Chinese crew at first showed a willingness to cooperate, but later regretted that when the ship arrived at the port and refused to enter Togolese Republic-registered Chinese freighter Hong Tai (宏泰號) and its crew have been detained on suspicion of deliberately damaging a submarine cable connecting Taiwan proper and Penghu County, the Coast Guard Administration said in a statement yesterday. The case would be subject to a “national security-level investigation” by the Tainan District Prosecutors’ Office, it added. The administration said that it had been monitoring the ship since 7:10pm on Saturday when it appeared to be loitering in waters about 6 nautical miles (11km) northwest of Tainan’s Chiang Chun Fishing Port, adding that the ship’s location was about 0.5 nautical miles north of the No.
A Chinese freighter that allegedly snapped an undersea cable linking Taiwan proper to Penghu County is suspected of being owned by a Chinese state-run company and had docked at the ports of Kaohsiung and Keelung for three months using different names. On Tuesday last week, the Togo-flagged freighter Hong Tai 58 (宏泰58號) and its Chinese crew were detained after the Taipei-Penghu No. 3 submarine cable was severed. When the Coast Guard Administration (CGA) first attempted to detain the ship on grounds of possible sabotage, its crew said the ship’s name was Hong Tai 168, although the Automatic Identification System (AIS)
An Akizuki-class destroyer last month made the first-ever solo transit of a Japan Maritime Self-Defense Force ship through the Taiwan Strait, Japanese government officials with knowledge of the matter said yesterday. The JS Akizuki carried out a north-to-south transit through the Taiwan Strait on Feb. 5 as it sailed to the South China Sea to participate in a joint exercise with US, Australian and Philippine forces that day. The Japanese destroyer JS Sazanami in September last year made the Japan Maritime Self-Defense Force’s first-ever transit through the Taiwan Strait, but it was joined by vessels from New Zealand and Australia,
COORDINATION, ASSURANCE: Separately, representatives reintroduced a bill that asks the state department to review guidelines on how the US engages with Taiwan US senators on Tuesday introduced the Taiwan travel and tourism coordination act, which they said would bolster bilateral travel and cooperation. The bill, proposed by US senators Marsha Blackburn and Brian Schatz, seeks to establish “robust security screenings for those traveling to the US from Asia, open new markets for American industry, and strengthen the economic partnership between the US and Taiwan,” they said in a statement. “Travel and tourism play a crucial role in a nation’s economic security,” but Taiwan faces “pressure and coercion from the Chinese Communist Party [CCP]” in this sector, the statement said. As Taiwan is a “vital trading
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