Asian stocks advanced this week, lifting the MSCI Asia-Pacific Index for the first time in a month, after G20 governments agreed to maintain stimulus efforts and Japan’s machinery orders grew more than estimated.
BHP Billiton Ltd and rival Rio Tinto Group both jumped in Sydney amid speculation looser monetary policies will continue to sustain inflows of cash into equities. Tractor maker Kubota Corp soared 9.9 percent in Tokyo. HSBC Holdings PLC gained 8.9 percent in Hong Kong this week after saying third-quarter profit was “significantly” higher than a year ago.
The MSCI Asia-Pacific Index advanced 1.6 percent to 118.28 this week, breaking a three-week losing streak. The gauge has lost 2.4 percent from a 13-month high on Oct. 20 on concern governments will withdraw stimulus measures.
“Asian economies are set to recover ahead of other regions,” said Soichiro Monji, chief strategist at Tokyo-based Daiwa SB Investments Ltd, which manages the equivalent of US$38 billion. “That’s the reason why exports and industrial production are improving so quickly. Next year, growth will be led by Asian economies.”
Australia’s S&P/ASX 200 Index gained 2.5 percent this week. Axa Asia-Pacific Holdings Ltd surged 34 percent after rejecting a hostile bid. The Hang Seng Index climbed 3.3 percent in Hong Kong, adding to last week’s 0.4 percent advance. Tokyo’s Nikkei 225 Stock Average dipped 0.2 percent.
The MSCI Asia-Pacific Index has climbed 68 percent from a more than five-year low on March 9, outpacing gains by the S&P 500 and Europe’s Dow Jones STOXX 600 Index. Dividend yields on the Asian gauge, based on payouts in the past 12 months, dropped to 2.3 percent on Wednesday, the lowest level in at least a year.
Taiwanese share prices are expected to encounter pressure next week as investors take profits from gains made in recent sessions, dealers said.
Investors are afraid that Wall Street will suffer further losses as it has showed signs of “rally fatigue” after failing to react to positive economic and corporate news, they said.
With a lackluster Wall Street, foreign institutional investors may cut their holdings in local shares, in turn also scaring away their retail counterparts, they added.
For the week to Friday, the weighted index rose 202.58 points or 2.71 percent to 7,665.63 after a 1.68 percent increase a week earlier.
Other markets on Friday:
SHANGHAI: Up 0.46 percent from Thursday. The Shanghai Composite Index, which covers both A and B shares, was up 14.70 points at 3,187.65.
SEOUL: Flat. The KOSPI lost 0.74 points from Thursday to close at 1,571.99. Concerns mounted about the potential loss of price competitiveness by major exporters as the US dollar remained weak.
SINGAPORE: Flat. The blue-chip Straits Times Index closed 0.99 points higher from Thursday at 2,727.23.
BANGKOK: Up 0.23 percent from Thursday. The Stock Exchange of Thailand (SET) composite index rose 1.61 points to close at 698.33 points.
KUALA LUMPUR: Flat. The Kuala Lumpur Composite Index fell 0.79 points from Thursday to close at 1,270.96.
MANILA: Down 1.29 percent from Thursday. The composite index fell 39.60 points to 3,034.32. Mining companies that had risen during the week felt the brunt of the fall on Friday.
MUMBAI: Up 0.92 percent from Thursday. The 30-share SENSEX index rose 152.8 points to 16,848.83.
STILL COMMITTED: The US opposes any forced change to the ‘status quo’ in the Strait, but also does not seek conflict, US Secretary of State Marco Rubio said US President Donald Trump’s administration released US$5.3 billion in previously frozen foreign aid, including US$870 million in security exemptions for programs in Taiwan, a list of exemptions reviewed by Reuters showed. Trump ordered a 90-day pause on foreign aid shortly after taking office on Jan. 20, halting funding for everything from programs that fight starvation and deadly diseases to providing shelters for millions of displaced people across the globe. US Secretary of State Marco Rubio, who has said that all foreign assistance must align with Trump’s “America First” priorities, issued waivers late last month on military aid to Israel and Egypt, the
France’s nuclear-powered aircraft carrier and accompanying warships were in the Philippines yesterday after holding combat drills with Philippine forces in the disputed South China Sea in a show of firepower that would likely antagonize China. The Charles de Gaulle on Friday docked at Subic Bay, a former US naval base northwest of Manila, for a break after more than two months of deployment in the Indo-Pacific region. The French carrier engaged with security allies for contingency readiness and to promote regional security, including with Philippine forces, navy ships and fighter jets. They held anti-submarine warfare drills and aerial combat training on Friday in
COMBAT READINESS: The military is reviewing weaponry, personnel resources, and mobilization and recovery forces to adjust defense strategies, the defense minister said The military has released a photograph of Minister of National Defense Wellington Koo (顧立雄) appearing to sit beside a US general during the annual Han Kuang military exercises on Friday last week in a historic first. In the photo, Koo, who was presiding over the drills with high-level officers, appears to be sitting next to US Marine Corps Major General Jay Bargeron, the director of strategic planning and policy of the US Indo-Pacific Command, although only Bargeron’s name tag is visible in the seat as “J5 Maj General.” It is the first time the military has released a photo of an active
CHANGE OF MIND: The Chinese crew at first showed a willingness to cooperate, but later regretted that when the ship arrived at the port and refused to enter Togolese Republic-registered Chinese freighter Hong Tai (宏泰號) and its crew have been detained on suspicion of deliberately damaging a submarine cable connecting Taiwan proper and Penghu County, the Coast Guard Administration said in a statement yesterday. The case would be subject to a “national security-level investigation” by the Tainan District Prosecutors’ Office, it added. The administration said that it had been monitoring the ship since 7:10pm on Saturday when it appeared to be loitering in waters about 6 nautical miles (11km) northwest of Tainan’s Chiang Chun Fishing Port, adding that the ship’s location was about 0.5 nautical miles north of the No.
RSS