Asian stocks rose for the fourth consecutive week, their longest winning streak in four months, as company earnings reports boosted confidence in the strength of the global economy.
Canon Inc, the world’s largest camera maker, jumped 9.3 percent this week in Tokyo after reporting profit that beat analyst estimates. Sony Corp, the maker of Bravia televisions, gained 7.6 percent in Tokyo after raising its annual forecast. HSBC Holdings PLC, Europe’s largest bank, climbed 3.7 percent in Hong Kong after most European banks passed stress tests. Sanyo Electric Co soared 21 percent after getting a takeover bid.
The MSCI Asia-Pacific Index rose 1.4 percent this week to 119.11 and climbed 5.6 percent this month, its first monthly increase since April and the biggest gain since March. The index has slumped about 8 percent from its high this year on April 15 on concern China’s measures to limit property-price inflation and Europe’s government-debt would stall global growth.
“People are buying on optimism the global economy is on an uptrend after seeing those positive earnings reports,” said Yoshinori Nagano, a senior strategist in Tokyo at Daiwa Asset Management Co, which oversees about US$104 billion.
Japan’s Nikkei 225 Stock Average gained 1.1 percent this week, even as industrial production unexpectedly dropped and unemployment climbed. Hong Kong’s Hang Seng Index rose 1 percent. China’s Shanghai Composite Index advanced 2.6 percent after the central bank said it will keep a “moderately loose” monetary policy.
This week was the peak for April-June earnings reports in the Asia-Pacific region, with more than one-fourth of the 985 companies in the MSCI Asia-Pacific Index releasing results, according to data compiled by Bloomberg. More than half the companies that announced results have exceeded analysts’ estimates, Bloomberg data showed.
Speculation economic growth may falter dragged down the MSCI Asia-Pacific Index by as much as 9.6 percent this year, and the average price of stocks in the gauge dropped this month to the lowest level since December 2008. The index’s companies trade at about 14 times estimated profit.
Taiwan’s TAIEX fell 38.36, or 0.5 percent, to 7,760.63 at the close of Taipei trading at 1:30pm on Friday. The benchmark was little changed for the week and rose 5.9 percent last month, the biggest gain since March.
Chang Hwa Commercial Bank (彰化銀行) gained 2.7 percent to NT$16.90 and Taiwan Business Bank (台灣企銀) advanced 1.8 percent to NT$9.47.
The two companies rose on speculation the two financial services companies may be first to be merged in a government-driven consolidation of the industry, Deutsche Bank AG analyst Nora Hou said.
In other markets on Friday:
Manila edged 2.76 points lower from Thursday to 3,426.59.
Jakarta lost 0.89 percent, or 27.53 points, from Thursday to end at 3,069.28.
Wellington was flat, adding 1.61 points from Thursday to end at 3,034.62.
Mumbai closed 0.69 percent, or 123.71 points, lower from Thursday at 17,868.29. Sentiment turned weak on lower-than-expected earnings from some Indian firms.
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,
US president-elect Donald Trump said he would “never say” if Washington is committed to defending Taiwan from China, but “I would prefer that they do not do it [ an attack],” adding that he has a “good relationship” with Chinese President Xi Jinping (習近平). “I never say because I have to negotiate things, right?” Trump said in an interview with NBC’s Meet the Press host Kristen Welker after saying he would not reveal his incoming administration’s stance on Taiwan’s defense in the event of an attack. Asked the question again, Trump, in a reference to China, said: “I would prefer that they
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