Asian stocks rose, driving the MSCI Asia-Pacific Index higher for a third week, as better-than-estimated US jobs data and easing concern over Greece’s debt spurred confidence in a global economic recovery.
Nissan Motor Co, which gets 35 percent of its revenue in North America, climbed 9.1 percent in Tokyo. China Life Insurance Co (中國人壽) jumped 6.1 percent after saying profit probably climbed more than 200 percent. In Sydney, Telstra Corp, Australia’s largest telephone company, rose 5.2 percent on optimism it will avoid a breakup.
“Improving economic figures from the US bodes well for equities as it will help boost Asian exports,” said Michiya Tomita, a Hong Kong-based fund manager for Mitsubishi UFJ Asset Management Co, which holds US$65 billion in assets. “Concerns about Greece have also been waning as investors are hoping the situation will be resolved soon.”
The MSCI Asia-Pacific Index gained 2.4 percent this week. The gauge has lost 2.8 percent since reaching a 17-month high on Jan. 15 amid concern governments from China to India will start withdrawing economic-stimulus measures and that Greece will struggle to curb its budget deficit.
Hong Kong’s Hang Seng Index rose 2 percent in the week, while Australia’s S&P/ASX 200 Index increased 1.1 percent and South Korea’s KOSPI Index gained 1.7 percent. The Shanghai Composite Index lost 0.6 percent as a government report showing consumer prices rose the most in 16 months added to concern China will pare back stimulus measures that spurred growth.
Japan’s Nikkei 225 Stock Average increased 3.7 percent in the past five days amid speculation the nation’s economy is recovering. The government will raise its economic assessment for the first time in eight months in a report to be released next week, public broadcaster NHK reported on Friday.
The MSCI World Index plunged 43 percent in 2008, the most in its almost 40-year history, as losses and writedowns swelled to more than US$1.7 trillion following the collapse of the US subprime-mortgage market and Lehman’s bankruptcy, prompting investors to exit equities. Stocks have risen from their post-Lehman lows, boosted by efforts such as China’s 4 trillion yuan (US$586 billion) in spending to stimulate growth.
Taiwan’s TAIEX index was little changed at 7,748.33 at the close of Taipei trading. It gained 1.1 percent this week.
Motech Industries Inc (茂迪), the nation’s largest solar cell maker, rose 1.6 percent to NT$124, the second day of gains. Citigroup Inc said in a report Motech and Gintech Energy Corp (昱晶能源) were its top picks for Taiwanese solar cell makers.
Novatek Microelectronics Corp (聯詠), the nation’s largest maker of chips used in LCDs, advanced 1.9 percent to NT$100.
Other markets on Friday:
Singapore closed 0.26 percent, or 7.45 points, higher from Thursday at 2,881.36.
Jakarta lost 0.37 percent, or 10.01 points, from Thursday to 2,666.51. Profit-taking on recent rally offset news of Indonesia’s ratings upgrade by Standard & Poor’s.
“It’s good news, because it confirms the good fundamentals of our economy, but shares are already overbought,” a trader said.
Astra Agro gained 1 percent to 24,650 rupiah, but Telkom fell 2.3 percent to 8,400.
Kuala Lumpur lost 0.77 percent, or 10.23 points, from Thursday to close at 1,311.20.
Manila closed 1.68 percent, or 52.65 points, lower from Thursday at 3,072.91. Jomar Lacson of Campos, Lanuza and Co said dealers were “reacting to the central bank’s withdrawal of emergency liquidity-enhancing measures, which signals they’ll soon raise interest rates.”
Wellington was flat, edging 1.69 points higher from Thursday to 3,225.14.
Bangkok closed 1.02 percent, or 7.39 points, higher from Thursday at 733.34, despite demonstrations in the capital ahead of a mass anti-government rally this weekend.
Mumbai closed flat, edging down 1.34 points from Thursday to 17,166.62. The market ignored industrial output data showing a rise of 16.7 percent in January year on year, broadly in line with forecasts.
PLA MANEUVERS: Although Beijing has yet to formally announce military drills, its coast guard vessels have been spotted near and around Taiwan since Friday The Taiwanese military is on high alert and is closely monitoring the Chinese People’s Liberation Army’s (PLA) air and naval deployments after Beijing yesterday reserved seven airspace areas east of its Zhejiang and Fujian provinces through Wednesday. Beijing’s action was perceived as a precursor to a potential third “Joint Sword” military exercise, which national security experts said the PLA could launch following President William Lai’s (賴清德) state visits to the nation’s three Pacific allies and stopovers in Hawaii and Guam last week. Unlike the Joint Sword military exercises in May and October, when Beijing provided detailed information about the affected areas, it
CHINA: The activities come amid speculation that Beijing might launch military exercises in response to Lai’s recent visit to Pacific allies The Ministry of National Defense (MND) yesterday said China had nearly doubled the number of its warships operating around the nation in the previous 24 hours, ahead of what security sources expect would be a new round of war games. China’s military activities come amid speculation Beijing might organize military drills around the nation in response to President William Lai’s (賴清德) recent visit to Pacific allies, including stops in Hawaii and Guam, a US territory. Lai returned from the week-long trip on Friday night. Beijing has held two rounds of war games around Taiwan this year, and sends ships and military planes
Five flights have been arranged to help nearly 2,000 Taiwanese tourists return home from Okinawa after being stranded due to cruise ship maintenance issues, the Ministry of Transportation and Communications announced yesterday. China Airlines Ltd (中華航空), and EVA Airways Corp (長榮航空) have arranged five flights with a total of 748 additional seats to transport 1,857 passengers from the MSC Bellissima back to Taiwan, the ministry said. The flights have been scheduled for yesterday and today by the Civil Aviation Administration, with the cruise operator covering all associated costs. The MSC Bellissima, carrying 4,341 passengers, departed from Keelung on Wednesday last week for Okinawa,
China is deploying its largest navy fleet in regional waters in nearly three decades, posing a threat to Taiwan that is more pronounced than previous Chinese war games, the Ministry of National Defense said today. Speaking in Taipei, ministry spokesperson Sun Li-fang (孫立方) said the scale of the current Chinese naval deployment in an area running from the southern Japanese islands down into the South China Sea was the largest since China held war games around Taiwan ahead of 1996 Taiwanese presidential elections. China's military has yet to comment and has not confirmed it is carrying out any exercises. "The current scale is
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