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.
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