Asian stocks rose, lifting the MSCI Asia-Pacific Index to its biggest weekly increase in three, as Japan said it’s ready to act to rein in the yen and reports showed growth in Chinese and US manufacturing.
Canon Inc, a Japanese camera maker that receives 82 percent of its sales abroad, gained 1.4 percent in Tokyo. Anhui Conch Cement Co (安徽海螺水泥股份), China’s biggest cement maker, climbed 12 percent. BHP Billiton Ltd, the world’s largest mining company, and Jiangxi Copper Co (江西銅業), China’s largest producer of the metal, both rose after metal prices increased. GS Yuasa Corp, which makes storage batteries, jumped 11 percent.
“Investors are kind of relieved because a downward spiral in the global economy had a pause this week,” said Naoki Fujiwara, who helps oversee US$6 billion in Tokyo at Shinkin Asset Management Co. “But investors won’t jump into buying shares just because of that, since there is still a strong sense of uncertainty.”
The MSCI Asia-Pacific Index increased 2.7 percent to 119.99 this week, its steepest weekly advance since the five days to Aug. 6, when the index closed at a three-month high.
Since then the index has slumped about 2 percent as the yen’s advance to a 15-year high against the US dollar and disappointing US data fueled global growth concerns.
Japan’s Nikkei 225 Stock Average climbed 1.4 percent and the Shanghai Composite Index increased 1.7 percent.
Australia’s S&P/ASX 200 Index advanced 3.9 percent after the nation’s GDP grew faster than economists estimated.
South Korea’s Kospi Index rose 2.9 percent even after the Bank of Korea said consumer confidence fell for the first time in five months.
Japanese Finance Minister Yoshihiko Noda this week reiterated Japanese Prime Minister Naoto Kan’s comments on Aug. 27 that the Japanese government is ready to take “bold” action on the currency if necessary.
Taiwan’s TAIEX rose 109.39, or 1.4 percent, to 7,830.21 at the close of Taipei trading on Friday, the third day of gains. The benchmark index advanced 1.4 percent this week, the biggest gain in four weeks.
The machinery and electronics sector posted the highest gains, up 2.2 percent. Cement stocks rose 1.8 percent, textile shares gained 1.0 percent, financial stocks grew 0.7 percent and foodstuffs added 0.6 percent.
The plastics and chemical sector closed up 0.4 percent, while construction stocks fell 1.5 percent and paper and pulp shares dropped 0.3 percent.
“High-tech stocks look attractive after recent heavy losses on fears of falling shipments,” Hua Nan Securities (華南證券) analyst Stan Chang said.
Chang said cheap flat-panel stocks stirred up strong interest from institutional investors and the buying also spread to other segments in the electronics sector to push the index even higher.
Other markets on Friday:
Manila rose 1.86 percent, or 68.16 points, from Thursday to 3,734.70.
Wellington closed up 0.81 percent, or 24.95 points, from Thursday at 3,107.43.
Mumbai closed flat, edging 16.88 points lower from Thursday to 18,221.43.
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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