Asian stocks gained this week, driving up the MSCI Asia-Pacific Index by the most in seven weeks as concern eased that the Federal Reserve will raise borrowing costs to curb inflation.
Evergreen Marine Corp (長榮海運), Asia’s largest container-shipping line, surged 11 percent in Taipei after boosting freight rates. Li & Fung Ltd (利豐), which gets 62 percent of sales from the US, gained 2.9 percent in Hong Kong as Fed Chairman Ben Bernanke said low interest rates are still needed to boost growth. Woolworths Ltd, Australia’s biggest retailer, advanced 4 percent in Sydney after reporting higher profit and announcing a share buyback.
“Bernanke stuck to the script and emphasized the Fed’s commitment to maintaining interest rates at low levels until the economic recovery becomes self-sustaining,” said Tim Schroeders, who helps manage about US$1.1 billion of equity investments at Pengana Capital Ltd in Melbourne.
The MSCI Asia-Pacific Index gained 2.4 percent to 118.07 this week, the most since the week ended Jan. 8. The gauge has lost 6.9 percent from a 17-month high on Jan. 15 on speculation central banks will start withdrawing stimulus measures. It has risen 1.5 percent this month.
Hong Kong’s Hang Seng Index climbed 3.6 percent this week, the biggest gain in the Asia-Pacific region, as the city’s economic growth beat estimates.
Japan’s Nikkei 225 Stock Average rose less than 0.1 percent to 10,126.03 as the nation’s exports and factory output increased.
China’s Shanghai Composite Index increased 1.1 percent, resuming trade after a one-week holiday for the Lunar New Year, as the government said it will extend support for the country’s industries amid weak global demand.
The MSCI Asia-Pacific Index surged 34 percent last year as governments worldwide boosted spending and central banks lowered interest rates to help restore economies battered by the global recession. The gauge has fallen about 2.3 percent this year on signs governments from China to the US and India will tighten lending and withdraw stimulus policies.
Japanese exports climbed at the fastest pace in almost 30 years last month and the country’s factory output increased for the 11th straight month, government reports said this week.
Taiwan’s TAIEX index rose 9.1, or 0.1 percent, to 7,436.1 at the close of Taipei trading on Friday. The benchmark index was little changed for the week and fell 2.7 percent this month.
Coretronic Corp (中強光電) rose 2.7 percent to NT$43.85 after the Economic Daily News reported sales of the company’s liquid-crystal-display backlight products will rise 30 percent this year from last year.
Hua Nan Financial Holdings Co (華南金控) gained 3.6 percent to NT$20 on speculation investors are buying the stock ahead of a board election, Masterlink Securities Corp (元富證券) analyst Greg Ou said.
“There has been ongoing speculation the government may increase its board member seats in the coming board elections,” Ou said in a telephone interview in Taipei.
Other markets on Friday:
Singapore closed flat, edging up 1.71 points from Thursday to 2,750.86.
Seoul rose 0.45 percent, or 7.07 points, from Thursday to 1,594.58.
Wellington gained 0.14 percent, or 4.42 points, from Thursday to close at 3,156.10.
Manila closed 0.41 percent, or 12.49 points, higher from Thursday at 3,043.75.
Bangkok rose 0.60 percent, or 4.27 points, from Thursday to close at 721.37. Trading was relatively heavy for the market, with nearly 20 billion baht exchanged, despite Thailand being on edge as it awaits a court verdict on the fate of former Thai premier Thaksin Shinawatra’s US$2.3 billion fortune.
Mumbai rose 175.35 points, 1.08 percent, from Thursday to 16,429.55. The market was boosted by a budget that promised to cut its enormous budget deficit from a 16-year high.
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.
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