Asian stocks rose for a fourth week as improved Australian consumer confidence and US retail sales, rising investments in China and higher commodity prices added to evidence that the global recession is easing.
Fortescue Metals Group Ltd, Australia’s third-largest iron ore producer, added 31 percent through the week on speculation demand for iron ore in China will rise. Rio Tinto Ltd, which gets 19 percent of its sales from China, jumped 6.5 percent. China Construction Bank Corp (中國建設銀行), China’s second-biggest lender, advanced 8.3 percent after the central bank said lending doubled. Mitsubishi Heavy Industries Ltd soared 15 percent on its talks to build a power plant Australia.
“There is a general sense that the worst has passed,” said Matt Riordan, who helps manage about US$3.2 billion at Paradice Investment Management in Sydney. “As things recover in the US, people will start buying imported products again, and that also flows through into resources.”
The MSCI Asia-Pacific Index gained 1.8 percent to 105.17, its highest since Sept. 26. The gauge has climbed 49 percent from a five-year low on March 9, taking valuations of its companies to the highest in more than eight months, as signs of a recovery have increased in recent weeks.
China’s central bank said new lending doubled to 664.5 billion yuan (US$97 billion) last month from 318.5 billion yuan a year earlier, adding to a credit boom that is supporting the government’s 4 trillion yuan stimulus plan.
Taiwanese share prices are expected to encounter further profit-taking pressure in the week ahead after a roller-coaster ride this week, dealers said on Friday.
Selling in bellwether electronic stocks and financial shares are likely to continue as they have been overvalued following a recent significant showing, they said.
However, commodity stocks, in particular steel and cement makers, may attract interest as investors are happy with rising international commodity prices, they added.
The bourse is expected to test the support at the 6,300-6,400 point range as dealers take to the sidelines on fears of further downside, while technical rebounds are possible, with a cap at around 6,650, dealers said.
For the week to Friday, the weighted index fell 408.51 points, or 5.96 percent, to 6,448.23 after a 0.49 percent fall a week earlier.
Average daily turnover stood at NT$133.25 billion (US$4.07 billion), compared with NT$160.90 billion a week ago.
Other regional markets on Friday:
TOKYO: Up 1.55 percent. The Nikkei-225 rose 1.55 percent or 154.49 points to 10,135.82. “The market is in a state of euphoria” as retail investors turned bullish, Chuo Securities equity head Akira Ishida told Dow Jones Newswires.
SHANGHAI: Down 1.91 percent. The Shanghai Composite Index, which covers A and B shares, was down 53.56 points at 2,743.76. The market fell on concerns over tightening liquidity after securities regulators said they would lift a freeze on initial public offerings soon, dealers said.
SINGAPORE: Down 0.20 percent. The blue-chip Straits Times Index eased 4.74 points to 2,377.07. Dealers said the market was unaffected by overnight gains in the US.
KUALA LUMPUR: Up 0.11 percent. The Kuala Lumpur Composite Index gained 1.19 points to 1,090.15.
BANGKOK: Up 0.24 percent. The SET composite index added 1.48 points to close at 628.55.
JAKARTA: Flat. The Jakarta Composite Index added 1.36 points, or 0.06 percent, to 2,090.94.
MUMBAI: Down 1.13 percent. The 30-share SENSEX fell 173.53 points to 15,237.94. Investors unwound positions ahead of the weekend, taking profits from a three-month rally in which prices have risen nearly 90 percent, dealers said.
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