Asian stocks advanced for the second time in three weeks as companies reported higher-than-estimated profit and US economic reports spurred confidence the global economy was strengthening.
Harvey Norman Holdings Ltd surged 21 percent in Sydney after profit beat analyst estimates. Westfield Group, which operates 55 US shopping malls, gained 9.2 percent as a gauge of US home prices advanced. Casio Computer Co, the maker of Exilim cameras and G-Shock watches, surged 9.1 percent on merger speculation. BOC Hong Kong (Holdings) Ltd led the region’s banks higher as the threat of loan losses receded.
“People are generally happy that things are improving,” said Tim Schroeders, who helps manage about US$1 billion at Pengana Capital Ltd in Melbourne. “It’s now a question of how strong that is going to be. We’re probably still going to get the occasional rogue figure from time to time.”
The MSCI Asia-Pacific Index gained 3 percent this week to 113.94, taking the gauge’s rally since hitting an almost six-year low on March 9 to 61.4 percent. In Sydney, the S&P/ASX 200 Index climbed 0.9 percent in the week after Australian business investment unexpectedly rose in the second quarter.
Japan’s Nikkei 225 Stock Average gained 2.9 percent to 10,534.14 as a report showed the nation’s exports fell less than expected. The country holds parliamentary elections today, which the opposition Democratic Party of Japan is expected to win by a landslide, newspaper polls show.
A Japanese government report this week showed the country’s exports fell 36.5 percent last month from a year earlier, less than some economists predicted.
In Australia, capital spending gained 3.3 percent in the three months through June from the first quarter, the Bureau of Statistics said on Thursday, whereas the median estimate of 14 economists surveyed by Bloomberg was for a 5 percent decrease.
Taiwanese shares are expected to face cautious sentiment in the week ahead as a visit by the Dalai Lama could lead to cross-strait tensions, dealers said on Friday.
The Tibetan leader’s trip is seen to keep investors on the sidelines, leading to thin trading and preventing the market from passing 6,900-7,000 points, dealers said.
For the week to Friday, the weighted index rose 155.06 points, or 2.33 percent, to 6,809.86 after a 5.87 percent fall a week earlier.
Average daily turnover stood at NT$89.32 billion (US$2.71 billion), compared with NT$92.95 billion a week ago.
The Dalai Lama is scheduled to arrive in Taiwan today to comfort victims of Morakot, which struck two weeks ago, killing 543 people.
China has strongly opposed the trip after President Ma Ying-jeou (馬英九) approved the visit.
“Investor confidence has been undermined by recent non-economic factors. The Dalai Lama visit may add further impact,” Grand Cathay Securities Corp (大華證券) analyst Mars Hsu said.
The local bourse has been hard hit by swine flue fears and as the government faced heavy criticism for its slow response to Typhoon Morakot.
However, Hsu said electronic book makers may attract more attention on relatively low valuations.
Other markets on Friday:
SINGAPORE: Flat. The blue-chip Straits Times Index edged 0.57 points or 0.02 percent higher to 2,642.80.
KUALA LUMPUR: Down 0.22 percent.The Kuala Lumpur Composite Index lost 2.63 points to 1,174.27. Market players stepped back ahead of a long holiday weekend, dealers said.
MANILA: Up 0.10 percent. The composite index gained 2.78 points to 2,884.18. News of the economy growing 1 percent in the first half helped lift the index. The rise was moderated due to “concerns from the investors because the valuations are a bit pricey,” April Lee‑Tan of Citiseconline said.
MUMBAI: Up 0.9 percent. The 30-share SENSEX rose 141.27 points to 15,922.34. The index marked up its seventh straight day of gains on hopes of a sustained economic recovery, dealers said.
Taiwan moved clear of Mexico to be the only country at No. 2 in the World Baseball Softball Confederation (WBSC) Men’s Baseball World Rankings. Meanwhile, draft bills to set up a ministry of sports were approved at a joint session at the legislature in Taipei yesterday. After previously being tied with Mexico for second on 4,118 points, Taiwan moved clear on 5,498 points after they defeated Japan in the final of the WBSC Premier12 tournament on Sunday. Mexico (4,729) dropped to fourth, behind Venezuela (4,846), who finished fourth at the tournament. Taiwan narrowed the gap to first-placed Japan to 1,368 points from 1,638, WBSC
GLOBAL SUPPORT: The Ministry of Foreign Affairs said that the motion highlighted the improper exclusion of Taiwan from international discussion and cooperative mechanisms Taiwan yesterday thanked the British parliament for passing a motion stating that UN Resolution 2758 does not involve Taiwan, making it the latest body to reject China’s interpretation of the resolution. The House of Commons on Thursday debated the international status of Taiwan and unanimously passed a pro-Taiwan motion stating that the House “notes that UN Resolution 2758 does not address the political status of Taiwan or establish PRC [People’s Republic of China] sovereignty over Taiwan and is silent both on the status of Taiwan in the UN and on Taiwanese participation in UN agencies.” British Foreign, Commonwealth and Development Office Parliamentary
HIGH ALERT: The armed forces are watching for a potential military drill by China in response to the president’s trip, with the air force yesterday conducting an exercise President William Lai (賴清德) is to make stopovers in Hawaii and the US territory of Guam during his seven-day trip to the South Pacific, his first official visit since taking office in May, the Presidential Office said yesterday. Lai, accompanied by a delegation, is scheduled to depart for the South Pacific on a chartered flight at 4:30pm tomorrow, stopping first in Hawaii for a two-night layover before traveling to the Marshall Islands, an office official said. After wrapping up his visits to the Marshall Islands and Tuvalu, the president is to transit through Guam, spending a night there before flying to Palau,
‘IMPORTANCE OF PEACE’: President Lai was welcomed by AIT Managing Director Ingrid Larson, Hawaii Governor Josh Green, Honolulu Mayor Rick Blangiardi and others President William Lai (賴清德) was feted with red carpets, garlands of flowers and “alohas” as he began his two-day stopover in Hawaii on Saturday, part of a Pacific tour. Looking relaxed in a Hawaiian shirt, Lai flitted around the US island state, visiting the Bernice Pauahi Bishop Museum, Hawaii’s leading museum of natural history and native Hawaiian culture, the Hawaii Emergency Management Agency and the USS Arizona Memorial in Pearl Harbor. Lai was given the “red carpet treatment” on the tarmac of Honolulu’s international airport, his office said, adding that it was the first time a Taiwanese president had been given such
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