Asian stocks climbed for a third straight week as a China purchasing manager’s index and better-than-expected Australia’s GDP figures spurred optimism the global economy is recovering.
Rio Tinto Ltd, the world’s third-biggest mining company, surged 12 percent after saying it would sell shares and form a joint venture with BHP Billiton Ltd instead of pursuing an investment from Aluminum Corp of China (Chinalco, 中國鋁業). BHP, the world’s biggest mining company, climbed 10 percent. CNOOC Ltd (中國海洋石油), China’s biggest offshore oil producer, rallied as oil prices rose.
“Positive economic numbers, particularly from China, should provide a further leg up for this rally,” said Khiem Do, head of multi-asset strategy at Baring Asset Management (Asia) Ltd in Hong Kong, which oversees US$7 billion. “Risk appetite is coming back with a vengeance.”
The MSCI Asia-Pacific Index advanced 1.3 percent to 103.33 in Tokyo. The gauge, which has surged 47 percent since falling to a more than five-year low on March 9, briefly pared gains after Yonhap News reported on Tuesday that North Korea was preparing to launch a medium-range missile.
South Korea’s KOSPI index fell 0.1 percent, dropping for a second week as concerns North Korea will step up military tests outweighed signs the global recession is abating.
Mining and energy companies are the best performers of the MSCI Asia-Pacific Index’s 10 industry groups in the past month as prospects of a global recovery fueled optimism that demand for commodities will increase.
Taiwanese share prices are expected to move in a narrow range next week amid cautious sentiment toward electronic heavyweights’ sales from last month, dealers said on Friday.
For the week to Friday, the weighted index lost 123.34 points, or 1.79 percent, to 6,767.10 after a 2.27 percent increase a week earlier.
The TAIEX yesterday rose 89.64 points, or 1.32 percent, to 6,856.74 from Friday’s close on turnover of NT$94.34 billion. The local stock market opened yesterday to compensate for a holiday last week.
Since the beginning of March, the local bourse has risen more than 27 percent on optimism about closer business ties with China.
Japanese shares will likely remain rangebound in the coming week as investors search for fresh leads amid hesitant trade, analysts said on Friday.
Over the week to Friday, the benchmark Nikkei-225 index gained 245.51 points, or 2.58 percent, to 9,768.01, following rallies on Wall Street. The broader TOPIX index of all first section shares gained 18.65 points, or 2.08 percent, to 916.56.
Other markets on Friday:
HONG KONG: Up 0.96 percent. The Hang Seng Index closed up 176.76 points at 18,679.53. A late surge provided some direction to a lackluster market, dealers said.
SHANGHAI: Down 0.48 percent. The Shanghai Composite Index, which covers A and B shares, was down 13.35 points to 2,753.89. The market was hit by renewed concerns over a possible resumption of initial public offerings later in the month, dealers said.
SEOUL: Up 1.2 percent. The KOSPI gained 16.57 points to 1,394.71, helped by gains in financial and technology stocks.
MUMBAI: Up 0.63 percent. The benchmark 30-share SENSEX rose 94.87 points to 15,103.55, a more than nine-month high.
‘TOO TIRED’: The former mayor’s political party said that he had been questioned for nearly 19 hours, so he declined to be questioned at night, as he felt exhausted Taiwan People’s Party (TPP) Chairman Ko Wen-je (柯文哲) was arrested early yesterday morning after being questioned by prosecutors over his alleged role in a corruption scandal concerning the Core Pacific City redevelopment project during his tenure as Taipei mayor. The arrest was made after Ko refused to be questioned at night and attempted to leave the prosecutors’ office, the Taipei District Prosecutors’ Office said. Prosecutors were worried that he would collude with others involved in the case to make false statements if they allowed him to leave, so they issued an order to arrest him, the office said. Ko yesterday sought a court
ECONOMIC RESILIENCE: Only 11.4 percent of Taiwan’s overseas investments last year were in China, and businesses are dispersing their investments elsewhere, Lai said China’s ambition to annex Taiwan is based on a desire to change the rules-based international order, rather than a desire for territorial gains, President William Lai (賴清德) said in an interview. During an appearance on the talk show The View With Catherine Chang, aired last night, Lai said China aimed to achieve hegemony, and that peace and stability in the Taiwan Strait was an issue of worldwide concern. During the interview, Lai also discussed his “four-pillar plan” for peace and prosperity, which he first outlined in an article published by the Wall Street Journal on July 4 last year. That
‘GLOBAL THREAT’: MOFA said that it welcomes the ‘staunch US support’ and that ‘China again made spurious claims about Taiwan that do not accord with reality’ US National Security Adviser Jake Sullivan stressed the importance of stability in the Taiwan Strait, while a senior Chinese military official warned the US to stop “collusion” with Taiwan in a rare one-on-one meeting yesterday, both sides said. Sullivan arrived in Beijing on Tuesday, the first US national security adviser to visit China since 2016, for three days of talks with Chinese Minister of Foreign Affairs Wang Yi (王毅) and other high-ranking officials. Yesterday morning, Sullivan met with Zhang Youxia (張又俠), vice chairman of the Central Military Commission and China’s second-highest-ranking military official, at the Beijing headquarters of the commission.
GRAFT PROBE: Critics questioned Ko claiming he did not know about the Core Pacific floor area ratio issue until this year, citing a 2021 video in which he was asked about it Taiwan People’s Party (TPP) Chairman Ko Wen-je (柯文哲) was released without bail early yesterday, while his deputy during his tenure as Taipei mayor was detained and held incommunicado after being questioned since Friday over graft allegations related to a shopping center redevelopment project. Prosecutors on Saturday filed a request with the Taipei District Court to officially detain Ko and former Taipei deputy mayor Pong Cheng-sheng (彭振聲) over allegations surrounding the redevelopment of Core Pacific City, also known as Living Mall (京華城購物中心). The court yesterday determined that the evidence provided by prosecutors was insufficient to justify the detention of Ko and ordered his