Asian stocks rose for a second week, the first consecutive gain in six months, after central banks cut interest rates and US president-elect Barack Obama’s victory in the US election sparked speculation his spending plans will stimulate growth.
Mizuho Financial Group Inc jumped 20 percent, the best week since 2003, as Japan’s three-month interbank rate tumbled the most in almost a decade. Shinhan Financial Group Ltd gained 16 percent after South Korea pledged to pump US$10.5 billion into its economy and the Bank of Korea lowered rates for the third time in a month. Nintendo Co, the world’s biggest maker of handheld video-game consoles, rallied 7 percent after the election of Obama, who has urged Congress to pass a US$175 billion economic stimulus bill.
“The stability of financial markets has been restored somewhat,” said Hideyuki Ookoshi, who helps oversee about US$365 million at Chiba-Gin Asset Management Co in Tokyo. “Investors are keeping a keen eye on government efforts to shore up banks’ capital, which is the key to the recovery of global economies.”
PHOTO: AFP
The MSCI Asia-Pacific Index added 1.5 percent to 87.23 in the five days to Friday. It’s the first time the gauge has risen for consecutive weeks since May. A measure of financial companies climbed 5.1 percent, the most among the index’s 10 industry groups.
MSCI’s Asian index has lost 45 percent this year, exceeding declines for benchmark indexes in the US and Europe, as the 15-month credit crisis curtailed lending, and fund redemptions and currency market volatility prompted an exodus of capital from the region.
TAIPEI
Taiwanese share prices are expected to challenge the key 5,000-point mark on an extended technical rebound as investors hunt bargains, dealers said on Friday.
After being seriously hit recently, financials may continue to lead the upside on optimism of closer cross-strait economic exchanges which are expected to produce more opportunities in China for the sector, they said.
Investors also set aside anti-China sentiment from the Democratic Progressive Party, even though violent protests against a visit by a top Chinese envoy left more than 60 police and dozens of others injured, dealers said.
Buying interest is likely to shift back to transport and tourism stocks after Taiwan and China signed historic agreements on direct air and shipping links, they said.
While the market may rise to 5,000 points again next week, selling pressure may emerge to erode the gains with technical support at around 4,500 points, dealers said.
For the week to Friday, the TAIEX lost 128.33 points, or 2.63 percent, to 4,742.33 after a 6.36 percent increase a week earlier.
Average daily turnover stood at NT$72.04 billion (US$2.2 billion), compared with NT$68.42 billion a week ago.
The market staged a comeback in late Friday trading, recovering from early heavy losses, after a plunge on Thursday.
TOKYO
Japan’s Nikkei stock index ended down 3.55 percent. The benchmark fell 316.14 points to 8,583.00.
The TOPIX index of all first section issues fell 30.30 points, or 3.33 percent, to 879.00.
HONG KONG
Shares closed 3.3 percent higher. The benchmark Hang Seng Index was up 453.39 points to 14,243.43.
Analysts said investors likely saw a 25 basis point rate cut by HSBC as a sign of easing pressures on a tight interbank market, as local commercial banks had been reluctant to lend to one another due to the global credit crisis.
SYDNEY
Australian shares closed down 2.4 percent. The benchmark S&P/ASX200 closed down 98.4 points to 4,051.3, while the broader All Ordinaries fell 99.9 points to 4,006.6.
The fall followed a 4.3 percent drop on Thursday.
SHANGHAI
Chinese share prices closed up 1.75 percent.
Shares opened lower after some index heavyweights posted weak earnings or cut production, but bargain hunters emerged after the break on hopes Beijing may cut interest rates in the coming months, dealers said.
The benchmark Shanghai Composite Index, which covers A and B shares, closed up 29.99 points to 1,747.71.
SEOUL
South Korean share prices closed 3.9 percent higher. The KOSPI index ended up 42.27 points at 1,134.49.
SINGAPORE
Singapore shares closed 2.43 percent up. The main Straits Times Index rose 44.29 points to 1,863.49.
KUALA LUMPUR
Malaysian share prices closed 0.2 percent lower. The Kuala Lumpur Composite Index lost 2.00 points to close at 893.95.
BANGKOK
Thai share prices closed 0.19 percent higher. The Stock Exchange of Thailand (SET) composite index edged up 0.88 points to close at 463.81.
JAKARTA
Indonesian shares ended up 2.3 percent. The Jakarta Composite Index rose 30.47 points to 1,338.36.
MANILA
Philippine share prices closed 1 percent lower. The composite index lost 20.28 points to 1,921.34.
WELLINGTON
New Zealand share prices closed 1.71 percent lower. The benchmark NZX-50 index fell 48.48 points to 2,791.65.
MUMBAI
Indian shares rose 2.36 percent. The benchmark 30-share SENSEX index rose 230.07 points to 9,964.29.
GEARING UP: An invasion would be difficult and would strain China’s forces, but it has conducted large-scale training supporting an invasion scenario, the report said China increased its military pressure on Taiwan last year and took other steps in preparation for a potential invasion, an annual report published by the US Department of Defense on Wednesday showed. “Throughout 2023, Beijing continued to erode longstanding norms in and around Taiwan by employing a range of pressure tactics against Taiwan,” the report said, which is titled “Military and Security Developments Involving the People’s Republic of China (PRC) 2024.” The Chinese People’s Liberation Army (PLA) “is preparing for a contingency to unify Taiwan with the PRC by force, if perceived as necessary by Beijing, while simultaneously deterring, delaying or denying
‘ONE BRIDGE’: The US president-elect met with Akie Abe on Dec. 15 in Florida and the two discussed a potential Taiwan-China conflict’s implications for world peace US president-elect Donald Trump has described Taiwan as “a major issue for world peace” during a meeting with Akie Abe, the widow of late Japanese prime minister Shinzo Abe, Japanese newspaper the Yomiuri Shimbun quoted sources as saying in a report yesterday. Trump met with Akie Abe on Dec. 15 at the Mar-a-Lago estate in Florida, where the two discussed the Russo-Ukrainian war and the situation in the Taiwan Strait. During the meeting, Trump spoke on the implications for world peace of a potential Taiwan-China conflict, which “indicated his administration’s stance of placing importance on dealing with the situation in
QUICK LOOK: The amendments include stricter recall requirements and Constitutional Court procedures, as well as a big increase in local governments’ budgets Portions of controversial amendments to tighten requirements for recalling officials and Constitutional Court procedures were passed by opposition lawmakers yesterday following clashes between lawmakers in the morning, as Democratic Progressive Party (DPP) members tried to block Chinese Nationalist Party (KMT) legislators from entering the chamber. Parts of the Public Officials Election and Recall Act (公職人員選舉罷免法) and Constitutional Court Procedure Act (憲法訴訟法) passed the third reading yesterday. The legislature was still voting on various amendments to the Act Governing the Allocation of Government Revenues and Expenditures (財政收支劃分法) as of press time last night, after the session was extended to midnight. Amendments to Article 4
ALLIANCE: Washington continues to implement its policy of normalizing arms sales to Taiwan and helps enhance its defense, the Ministry of Foreign Affairs said US President Joe Biden on Friday agreed to provide US$571.3 million in defense support for Taiwan, the White House said, while the US State Department approved the potential sale of US$265 million in military equipment. Biden had delegated to the secretary of state the authority “to direct the drawdown of up to US$571.3 million in defense articles and services of the Department of Defense, and military education and training, to provide assistance to Taiwan,” the White House said in a statement. However, it did not provide specific details about this latest package, which was the third of its kind to
RSS