Asian stocks rose for a fourth week in five, driving the MSCI Asia-Pacific Index to the highest level in eight months, as US consumer confidence and Japanese production reports spurred hopes for a global economic recovery.
Toyota Motor Corp, which gets 31 percent of its revenue in North America, gained 6.7 percent in Tokyo. PetroChina Co, the nation’s biggest oil producer, advanced 6 percent as crude oil prices surged for a second week. Hang Lung Properties Ltd, Hong Kong’s fifth-biggest builder, surged 16 percent after Hong Kong’s government announced an additional stimulus package.
“Signs of a turnaround are coming through,” said Matt Riordan, who helps manage about US$3.1 billion at Paradice Investment Management in Sydney. “People who were initially dismissing this as a bear-market rally are concerned it might be sustainable.”
The MSCI Asia-Pacific Index gained 2.7 percent to 102.04, its highest level since Oct. 3. The gauge, which has rallied 45 percent from a five-year low on March 9, briefly pared gains this week after North Korea threatened a military strike in response to South Korea joining a program to seize weapons shipments.
South Korea’s KOSPI Index sank 0.6 percent as North Korea tested a nuclear device on May 25 and launched six short-range missiles in defiance of international condemnation.
“The North Korean missile test is providing investors a reality check,” said Roger Groebli, Singapore-based head of market analysis at LGT Capital Management, which oversees about US$20 billion. “Valuations in Asia are a little rich.”
Taiwanese share prices are expected to challenge the key 7,000-point level next week on continued inflows of foreign funds, dealers said.
Foreign institutional investors are likely to pick up financial heavyweights as their holdings remain relatively low and they need further short covering, they said.
However, as the bellwether electronic sector is scheduled to report sales data for this month, cautious sentiment toward high-tech stocks may cast a shadow over the broader market, the dealers added.
While the ample liquidity is expected to push the index through 7,000 or even higher next week, stiff technical resistance is likely to follow and drag it to around 6,600, they said.
In the holiday-shortened week to Wednesday, the weighted index rose 153.15 points, or 2.27 percent, to 6,890.44 after a 3.82 percent increase a week earlier.
Average daily turnover stood at NT$204.64 billion (US$6.28 billion), compared with NT$189.36 billion a week ago.
The market was closed on Thursday and Friday for the prolonged Dragon Boat Festival holiday.
Other regional markets on Friday:
HONG KONG: Up 1.60 percent. The Hang Seng Index rose 285.73 points at 18,171.00, its highest close since early October. Dealers said profit-taking pressure was strong as the local benchmark index has risen 17 percent since the start of May.
SYDNEY: Up 1.7 percent. The S&P/ASX 200 rose 62.2 points to 3,817.9. The market was “remarkably strong” and buoyed by gains in Commonwealth Bank, ANZ and Westpac after a positive lead from Wall Street, Ord Minnett private client adviser Jon Hancock said.
SEOUL: UP 0.27 percent. The KOSPI ended up 3.72 points at 1,395.89. Foreign buying outweighed concerns over instability on the Korean peninsula.
KUALA LUMPUR: Up 0.28 percent. The Kuala Lumpur Composite Index added 2.87 points at 1,044.11.
MANILA: Up 1.48 percent. The composite index rose 34.94 points to 2,389.31.
MUMBAI: Up 2.3 percent. The 30-share SENSEX rose 329.24 points to 14,625.25, a near nine-month high. Sentiment was lifted after the government said the economy grew by a better-than-expected 6.7 percent in the past fiscal year, dealers said.
Tropical Storm Gaemi strengthened into a typhoon at 2pm yesterday, and could make landfall in Yilan County tomorrow, the Central Weather Administration (CWA) said yesterday. The agency was scheduled to issue a sea warning at 11:30pm yesterday, and could issue a land warning later today. Gaemi was moving north-northwest at 4kph, carrying maximum sustained winds near its center of up to 118.8kph and gusts of 154.8kph. The circumference is forecast to reach eastern Taiwan tomorrow morning, with the center making landfall in Yilan County later that night before departing from the north coast, CWA weather forecaster Kuan Shin-ping (官欣平) said yesterday. Uncertainty remains and
DISRUPTIONS: The high-speed rail is to operate as normal, while several airlines either canceled flights or announced early departures or late arrivals Schools and offices in 15 cities and counties are to be closed today due to Typhoon Gaemi, local governments announced last night. The 15 are: Taipei, New Taipei City, Taoyuan, Tainan, Keelung, Hsinchu and Kaohsiung, as well as Yilan, Hualien, Hsinchu, Miaoli, Chiayi, Pingtung, Penghu and Lienchiang counties. People should brace for torrential rainfall brought by the storm, with its center forecast to make landfall on the east coast between tonight and tomorrow morning, the Central Weather Administration (CWA) said. The agency issued a sea warning for the typhoon at 11:30pm on Monday, followed by a land warning at 11:30am yesterday. As of
CASUALTY: A 70-year-old woman was killed by a falling tree in Kaohsiung as the premier warned all government agencies to remain on high alert for the next 24 hours Schools and offices nationwide are to be closed for a second day today as Typhoon Gaemi crosses over the nation, bringing torrential rain and whipping winds. Gaemi was forecast to make landfall late last night. From Tuesday night, its outer band brought substantial rainfall and strong winds to the nation. As of 6:15pm last night, the typhoon’s center was 20km southeast of Hualien County, Central Weather Administration (CWA) data showed. It was moving at 19kph and had a radius of 250km. As of 3pm yesterday, one woman had died, while 58 people were injured, the Central Emergency Operation Center said. The 70-year-old
SEA SEARCH: Nine crew members of a cargo ship had taken to the water after the vessel sunk off the southern coast, with a rescue effort under way, officials said The strongest typhoon to hit Taiwan in eight years yesterday killed three people and flooded parts of the nation’s second-biggest city, while rescuers were searching for nine sailors after their cargo ship sank in the storm. Typhoon Gaemi transformed streets in Kaohsiung into rivers, with some households flooded. Offices and schools were closed for the second consecutive day, with thousands of people evacuated. Three people died and 380 were injured due to strong winds and torrential rainfall brought by Typhoon Gaemi, the Central Emergency Response Center said. The typhoon made landfall in Yilan County’s Nanao Township (南澳) at midnight yesterday and departed Taiwan