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.
A Chinese freighter that allegedly snapped an undersea cable linking Taiwan proper to Penghu County is suspected of being owned by a Chinese state-run company and had docked at the ports of Kaohsiung and Keelung for three months using different names. On Tuesday last week, the Togo-flagged freighter Hong Tai 58 (宏泰58號) and its Chinese crew were detained after the Taipei-Penghu No. 3 submarine cable was severed. When the Coast Guard Administration (CGA) first attempted to detain the ship on grounds of possible sabotage, its crew said the ship’s name was Hong Tai 168, although the Automatic Identification System (AIS)
An Akizuki-class destroyer last month made the first-ever solo transit of a Japan Maritime Self-Defense Force ship through the Taiwan Strait, Japanese government officials with knowledge of the matter said yesterday. The JS Akizuki carried out a north-to-south transit through the Taiwan Strait on Feb. 5 as it sailed to the South China Sea to participate in a joint exercise with US, Australian and Philippine forces that day. The Japanese destroyer JS Sazanami in September last year made the Japan Maritime Self-Defense Force’s first-ever transit through the Taiwan Strait, but it was joined by vessels from New Zealand and Australia,
SECURITY: The purpose for giving Hong Kong and Macau residents more lenient paths to permanent residency no longer applies due to China’s policies, a source said The government is considering removing an optional path to citizenship for residents from Hong Kong and Macau, and lengthening the terms for permanent residence eligibility, a source said yesterday. In a bid to prevent the Chinese Communist Party (CCP) from infiltrating Taiwan through immigration from Hong Kong and Macau, the government could amend immigration laws for residents of the territories who currently receive preferential treatment, an official familiar with the matter speaking on condition of anonymity said. The move was part of “national security-related legislative reform,” they added. Under the amendments, arrivals from the Chinese territories would have to reside in Taiwan for
CRITICAL MOVE: TSMC’s plan to invest another US$100 billion in US chipmaking would boost Taiwan’s competitive edge in the global market, the premier said The government would ensure that the most advanced chipmaking technology stays in Taiwan while assisting Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in investing overseas, the Presidential Office said yesterday. The statement follows a joint announcement by the world’s largest contract chipmaker and US President Donald Trump on Monday that TSMC would invest an additional US$100 billion over the next four years to expand its semiconductor manufacturing operations in the US, which would include construction of three new chip fabrication plants, two advanced packaging facilities, and a research and development center. The government knew about the deal in advance and would assist, Presidential
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