Asian stocks fell this week, ending a two-week rally, as companies lowered earnings forecasts amid mounting evidence that economies are slowing.
Commonwealth Bank of Australia fell 20 percent after saying bad loans may double and Australian business confidence fell to a record low. Citizen Holdings Co dropped 9.7 percent after cutting its profit forecast. Hana Financial Group Inc tumbled 36 percent after Fitch Ratings cut its outlook on South Korean banks.
China’s CSI 300 Index posted the biggest weekly gain since April, led by steelmakers, after the government announced a US$586 billion stimulus plan.
GRAPHIC: AFP
The MSCI Asia-Pacific Index fell 4.7 percent to 82.10 this week, snapping a two-week rally. Financial and technology stocks had the biggest falls among the 10 industry groups.
Japan’s Nikkei 224 Stock Average lost 1.4 percent this week and Australia’s S&P/ASX 200 Index dropped 7.5 percent. Most other markets in the region fell.
Asia-Pacific equities retreated on mounting evidence economies are slowing. China’s industrial output missed estimates, while South Korea’s exports increased at the slowest pace in 13 months last month. In the US, the Treasury scrapped plans to buy mortgage assets to focus on supporting consumer credit.
The MSCI index for the Asia-Pacific region has lost more than half its value since the peak in November last year in the rout triggered by a widening global credit crisis that originated in the US subprime mortgage market. That left shares on the gauge valued at 10 times trailing earnings after last month falling to as low as 8.2 times. Prior to the current turmoil, it never dropped below 10, Bloomberg data dating back to 1995 show.
TAIPEI
Taiwanese share prices are expected to extend losses next week as investors remain concerned over a global economic recession, dealers said on Friday.
Fears of volatility on Wall Street are likely to impact the local bourse owing to uncertainty after the US government changed tack on its use of a US$700 billion mortgage bailout package, they said.
Foreign institutional investors may continue to sell the bellwether electronics sector as it feels the pinch amid falling global demand, they said.
The market is expected to test the nearest technical resistance at around 4,200 points next week owing to fragile confidence, while a technical rebound is likely to follow with a cap at around 4,500 points, dealers said.
For the week to Friday, the weighted index closed down 289.63 points or 6.11 percent at 4,452.70, after a 2.63 percent fall a week earlier.
TOKYO
Japanese share prices gained 2.72 percent on Friday.
The Tokyo Stock Exchange’s benchmark climbed 223.75 points to finish at 8,462.39 after jumping more than 5 percent in early trading.
The broader TOPIX index of all first-section shares rose 9.38 points or 1.12 percent to 846.91. Exporters rallied after the US dollar jumped against the yen overnight, although the greenback eased back in Asian trading on Friday.
SHANGHAI
Chinese share prices jumped 3.05 percent. The benchmark Shanghai Composite Index, which covers A and B shares, closed up 58.83 points to 1,986.44.
Property developers gained on hopes that lower mortgage rates would give a boost to weakening demand.
KUALA LUMPUR
Malaysian share prices closed flat. The Kuala Lumpur Composite Index was up 1.06 points or 0.12 percent to closed at 881.65.
JAKARTA
Indonesian shares ended up 0.4 percent. The Jakarta Composite Index rose 4.67 points to 1,264.38.
MANILA
Philippine share prices closed 3.07 percent higher. The composite index rose 59.08 points to 1,978.05 points.
WELLINGTON
New Zealand share prices closed 1.39 percent higher. The benchmark NZX-50 index rose 38.05 points to close at 2,767.67.
MUMBAI
Indian shares fell 1.58 percent. The benchmark 30-share SENSEX fell 150.91 points to 9,385.42, at a near three-year low.
DISCONTENT: The CCP finds positive content about the lives of the Chinese living in Taiwan threatening, as such video could upset people in China, an expert said Chinese spouses of Taiwanese who make videos about their lives in Taiwan have been facing online threats from people in China, a source said yesterday. Some young Chinese spouses of Taiwanese make videos about their lives in Taiwan, often speaking favorably about their living conditions in the nation compared with those in China, the source said. However, the videos have caught the attention of Chinese officials, causing the spouses to come under attack by Beijing’s cyberarmy, they said. “People have been messing with the YouTube channels of these Chinese spouses and have been harassing their family members back in China,”
The Central Weather Administration (CWA) yesterday said there are four weather systems in the western Pacific, with one likely to strengthen into a tropical storm and pose a threat to Taiwan. The nascent tropical storm would be named Usagi and would be the fourth storm in the western Pacific at the moment, along with Typhoon Yinxing and tropical storms Toraji and Manyi, the CWA said. It would be the first time that four tropical cyclones exist simultaneously in November, it added. Records from the meteorology agency showed that three tropical cyclones existed concurrently in January in 1968, 1991 and 1992.
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‘SOMETHING SPECIAL’: Donald Trump vowed to reward his supporters, while President William Lai said he was confident the Taiwan-US partnership would continue Donald Trump was elected the 47th president of the US early yesterday morning, an extraordinary comeback for a former president who was convicted of felony charges and survived two assassination attempts. With a win in Wisconsin, Trump cleared the 270 electoral votes needed to clinch the presidency. As of press time last night, The Associated Press had Trump on 277 electoral college votes to 224 for US Vice President Kamala Harris, the Democratic Party’s nominee, with Alaska, Arizona, Maine, Michigan and Nevada yet to finalize results. He had 71,289,216 votes nationwide, or 51 percent, while Harris had 66,360,324 (47.5 percent). “We’ve been through so
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