Asian stocks climbed for a sixth week, the longest streak of gains in more than two years, on increasing confidence the worst of the global recession is over.
China Cosco Holdings Co, the world’s largest operator of dry-bulk ships, surged 21 percent on rising Chinese exports and shipping rates. PT Bumi Resources, Asia’s largest exporter of power-station coal, jumped 21 percent in Jakarta as elections strengthened the hold Indonesia’s president has over parliament. JFE Holdings Inc, Japan’s No. 2 steelmaker, soared 22 percent on speculation it won’t make large price cuts and as the government unveiled a record stimulus package.
“We’re probably seeing a bottoming out in the economy,” said Arjuna Mahendran, Singapore-based chief investment strategist for Asia at HSBC Private Bank, which oversees US$494 billion in assets. “The second quarter will be good for stocks as corporate earnings should bounce.”
The MSCI Asia-Pacific Index rose 2 percent this week to 89.69, completing the longest stretch of gains since December 2006. Asian markets have rallied 27 percent since the MSCI benchmark dropped to a six-year low on March 9.
Japan’s Nikkei 225 Stock Average lost 0.6 percent. South Korea’s KOSPI index dropped 0.5 percent as brokerages cut recommendations on financial companies. Thailand’s SET Index gained 0.6 percent in a week shortened by new year holidays. The Thai government called a state of emergency following clashes between security forces and protesters in Bangkok.
MSCI’s Asian index plunged by a record 43 percent last year as the credit crunch tipped the world’s largest economies into recession, forcing companies to cut jobs amid slumping profits.
The gauge has rallied 27 percent from a five-year low reached on March 9 amid signs government measures to ease the financial crisis are working. Earnings estimates for companies included in the MSCI benchmark started to rise this month after a year of falling predictions, data compiled by Bloomberg showed.
China’s exports rose 39 percent last month from a month earlier, the customs bureau said on April 10, when Hong Kong markets were shut for a holiday. The Baltic Dry Index, a measure of shipping costs for commodities, jumped 13.8 percent this week. The gauge had slumped as much as 94 percent from a peak in May last year.
China posted a 6.1 percent annualized growth rate for the first quarter, the slowest rate of expansion in nearly a decade. That may mark the bottom for the world’s third-largest economy as a 4 trillion yuan (US$585 billion) stimulus package cushions the effects of the global recession.
Taiwanese share prices are expected to fall further in the week ahead following steep losses on Friday, with the market having failed to push above the key 6,000 point mark this week, dealers said.
Friday’s decline prompted many investors to be wary of stiff technical resistance ahead of 6,000 points, with the market having gained more than 30 percent since the beginning of last month, they said. Analysts said market sentiment toward the bellwether electronic sector is likely to turn cautious as high-tech heavyweights start to release their first quarter results next week.
However, companies with close business ties to China may attract interest, as they are expected to outperform the broader market, they added.
In the week to Friday, the TAIEX fell 26.58 points, or 0.50 percent, to 5,755.38 after a 4.56 percent increase a week earlier. Average daily turnover stood at NT$168.57 billion (US$4.99 billion), compared with NT$144.05 billion a week ago.
Other markets on Friday:
JAKARTA: Up 0.6 percent. The Jakarta Composite index rose 9.7 points to 1,634.79. The index has risen 24.59 percent over the past month.
MANILA: Up 1.42 percent. The composite index rose 29.47 points to 2,094.13. “Expectations of bad financial figures aren’t coming through,” Eagle Equities president Joseph Roxas said.
WELLINGTON: Up 1.81 percent. The NZX-50 gained 48.13 points to 2,711.29. The focus was on leading stocks and signs of fresh money entering the market, dealers said.
MUMBAI: Up 0.69 percent. The 30-share SENSEX rose 75.69 points to 11,023.09. Stocks shed most intraday gains as investors chose to unwind positions ahead of the weekend, dealers said.
Super Typhoon Kong-rey is the largest cyclone to impact Taiwan in 27 years, the Central Weather Administration (CWA) said today. Kong-rey’s radius of maximum wind (RMW) — the distance between the center of a cyclone and its band of strongest winds — has expanded to 320km, CWA forecaster Chang Chun-yao (張竣堯) said. The last time a typhoon of comparable strength with an RMW larger than 300km made landfall in Taiwan was Typhoon Herb in 1996, he said. Herb made landfall between Keelung and Suao (蘇澳) in Yilan County with an RMW of 350km, Chang said. The weather station in Alishan (阿里山) recorded 1.09m of
NO WORK, CLASS: President William Lai urged people in the eastern, southern and northern parts of the country to be on alert, with Typhoon Kong-rey approaching Typhoon Kong-rey is expected to make landfall on Taiwan’s east coast today, with work and classes canceled nationwide. Packing gusts of nearly 300kph, the storm yesterday intensified into a typhoon and was expected to gain even more strength before hitting Taitung County, the US Navy’s Joint Typhoon Warning Center said. The storm is forecast to cross Taiwan’s south, enter the Taiwan Strait and head toward China, the Central Weather Administration (CWA) said. The CWA labeled the storm a “strong typhoon,” the most powerful on its scale. Up to 1.2m of rainfall was expected in mountainous areas of eastern Taiwan and destructive winds are likely
The Central Weather Administration (CWA) yesterday at 5:30pm issued a sea warning for Typhoon Kong-rey as the storm drew closer to the east coast. As of 8pm yesterday, the storm was 670km southeast of Oluanpi (鵝鑾鼻) and traveling northwest at 12kph to 16kph. It was packing maximum sustained winds of 162kph and gusts of up to 198kph, the CWA said. A land warning might be issued this morning for the storm, which is expected to have the strongest impact on Taiwan from tonight to early Friday morning, the agency said. Orchid Island (Lanyu, 蘭嶼) and Green Island (綠島) canceled classes and work
KONG-REY: A woman was killed in a vehicle hit by a tree, while 205 people were injured as the storm moved across the nation and entered the Taiwan Strait Typhoon Kong-rey slammed into Taiwan yesterday as one of the biggest storms to hit the nation in decades, whipping up 10m waves, triggering floods and claiming at least one life. Kong-rey made landfall in Taitung County’s Chenggong Township (成功) at 1:40pm, the Central Weather Administration (CWA) said. The typhoon — the first in Taiwan’s history to make landfall after mid-October — was moving north-northwest at 21kph when it hit land, CWA data showed. The fast-moving storm was packing maximum sustained winds of 184kph, with gusts of up to 227kph, CWA data showed. It was the same strength as Typhoon Gaemi, which was the most
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