Asian stocks rose for a second week as record sales at Intel Corp and unprecedented economic growth in Singapore overshadowed weak US factory reports and a slowdown in China.
LG Corp, the largest shareholder in the world’s third-biggest maker of mobile phones, surged 12 percent to 73,700 won as Intel’s second quarter sales beat estimates. DBS Group advanced 3.9 percent in Singapore after the city-state announced its economy expanded at a record 18.1 percent pace in the first half of this year. Li & Fung Ltd (利豐), the biggest supplier to retailers including Wal-Mart Stores Inc and Target Corp, dropped 3.4 percent in Hong Kong as US Federal Reserve officials downgraded their outlook for the US economy and retail sales slowed.
The MSCI Asia-Pacific Index climbed 0.05 points, or less than 0.1 percent, this week to 116.23, its smallest weekly advance since October 2005. A late surge by Indian shares pulled the index into positive territory after declining US factory output and weaker-than-expected earnings at Google Inc had seen the Asian gauge erase gains from earlier in the week.
Japan’s Nikkei 225 Stock Average declined 1.9 percent this week, led by banks after the ruling party lost control of the upper house in elections. China’s Shanghai Composite Index lost 1.9 percent as China’s expansion slowed.
Hong Kong’s Hang Seng Index declined 0.6 percent. Australia’s S&P/ASX 200 Index rose 0.6 percent. South Korea’s KOSPI Index rose 0.9 percent. Singapore’s Straits Times Index climbed 1.4 percent after its economy grew at a record pace.
Singapore’s GDP expanded at a 26 percent annualized pace in the second quarter from the previous three months, after a revised 45.9 percent gain in January to March, the trade ministry said on Wednesday. Growth in the first half was the fastest since records began in 1975, prompting the government to predict GDP will rise 13 percent to 15 percent this year.
Gains by technology stocks were pared after Google, owner of the world’s most popular search engine, reported profit was US$6.45 a share in the second quarter. Analysts had estimated US$6.52, according to a Bloomberg survey.
Taiwan’s TAIEX fell 39.95 points, or 0.5 percent, to 7,664.57 at the close of Taipei trading on Friday. The benchmark index advanced 0.2 percent this week.
Taiwanese share prices fell largely in response to losses posted by other regional markets amid concerns over the pace of global economic recovery, dealers said.
Select large high-tech stocks continued to take a beating as the market feared global consumption would be affected, while the financial sector extended its gains from the previous session on hopes that increasing cross-strait exchanges will boost their bottom lines.
Other markets on Friday:
Manila closed down 0.72 percent, or 24.95 points, from Thursday at 3,442.68 points.
Wellington slipped 0.55 percent from Thursday, pushing the benchmark NZX 50 Index below 3,000 points, despite a 5 percent increase for New Zealand Refining company. The NZX-50 index was down 16.56 points at 2,985.760.
Jakarta rose 0.40 percent, or 11.86 points, from Thursday to an all-time closing high of 2,992.45 as foreign funds bought banks and blue-chip mining stocks.
SEASONAL MORATORIUM: The boat was boarded and seized by the China Coast Guard east-northeast of Liaoluo Bay outside restricted waters on July 2 Four crew members of a Taiwanese fishing vessel detained by Chinese authorities since July 2 are expected to be released today, but the return dates of the captain and the boat remain uncertain, a former official said. The Fujian Provincial People’s Government’s Taiwan Affairs Office (TAO) is likely to first release the crew members today, including a Taiwanese surnamed Ting (丁) and three Indonesians, former Penghu County Council deputy speaker Chen Shuang-chuan (陳雙全) said yesterday. They are to take a boat to the median line of the Taiwan Strait, where they would be picked up by the Da Jin Man No. 96
China appears to be using a new type of BZK-005 drone that might be capable of disrupting the radio communications in the Taiwanese military and causing the radar system to malfunction, a military source said yesterday. The military is closely monitoring traces of this upgraded drone after the Japanese Ministry of Defense recently captured images of a BZK-005 drone, which had a large number of antennas under the nose of the aircraft and a pod of unknown purpose attached under the belly of the craft. Defense experts in other countries had warned that the Chinese People’s Liberation Army (PLA) has bolstered
CHAMPION: Lin Yu-ting overcame adversity and intense international scrutiny on her path to Olympic victory. She said it means so much to win the gold for her country Taiwanese boxer Lin Yu-ting (林郁婷) emerged as Olympic champion in the women’s 57kg (featherweight) division on Saturday in Paris (Sunday in Taipei), despite facing online abuse due to gender misconceptions over the past two weeks. Lin defeated Julia Szeremeta of Poland by a unanimous 5-0 decision to clinch the gold, completing a long journey of redemption after being eliminated from the Tokyo Games in 2021 in her opening bout. Lin, who has been competing in women’s events since her boxing debut in September 2013, is the first Taiwanese boxer to win gold, after three other Taiwanese female boxers earned bronze medals in
MESSAGE TO THE WORLD: A letter by overseas Taiwanese organizations also called on the international community to ‘support democracy’ by opposing Chinese pressure Twenty-four overseas Taiwanese organizations in a joint letter urged the International Olympic Committee (IOC) to stop infringing on spectators’ freedom of speech and allow them to display Taiwan signage. The letter, addressed to IOC president Thomas Bach and members of the IOC executive board, was led by the Formosan Association for Public Affairs (FAPA), along with 23 other overseas Taiwanese organizations from the US, Japan, Europe, Argentina and Costa Rica. During the Olympic games, signs or items with the words “Taiwan” on them have been snatched away by Olympic security staff or Chinese spectators. Some spectators holding such signs have been forcibly