Asian stocks gained, pushing the MSCI Asia-Pacific Index to a fourth consecutive weekly advance, as signs of economic growth in Hong Kong and Taiwan boosted investor confidence.
Sun Hung Kai Properties Ltd (新鴻基地產), the world’s largest developer by market value, had the biggest advance since February after it said leasing demand is rising.
Healthcare stocks rallied the most among the 10 industries in the MSCI Asia-Pacific Index after Ranbaxy Laboratories Ltd, India’s biggest drugmaker by sales, won exclusive rights to sell an Alzheimer’s treatment.
The MSCI Asia-Pacific Index climbed 1.01 percent to 125.51 this week, and reached its highest level in almost five months on Wednesday. Signs of growth among Asian nations outweighed a deteriorating profit outlook for US banks and speculation that the Federal Reserve will purchase more government debt to support the world’s biggest economy.
“Asia will continue to do relatively well,” said Sean Darby, an Asian regional strategist at Nomura Holdings Inc in Hong Kong. “The overall worries about China’s banking and property sector seems to have dissipated for the moment. There’s been a gap in the fact that there’s not been a lot of bad macro news to weigh markets down.”
The MSCI Asia-Pacific has rallied 15.3 percent since May 25 and is up 4.2 percent for the year. The Standard & Poor’s 500 Index of US equities has climbed 0.9 percent this year, while the STOXX Europe 600 Index advanced 2.8 percent.
The Hang Seng Index gained 0.7 percent this week after the Hong Kong Monetary Authority said the city’s economy will grow at a “moderate” pace through the end of this year. Australia’s S&P/ASX 200 Index fell 0.8 percent.
Japan’s Nikkei 225 Stock Average slumped 1.6 percent for the week. South Korea’s KOSPI index rose 1.1 percent and Singapore’s Straits Times Index advanced 0.5 percent.
Taiwan’s TAIEX gained 0.1 percent this week. The TAIEX closed down 0.44 percent from Thursday as selling focused on select high-tech heavyweights amid lingering concerns over global demand due to signs of a slowing world economy, dealers said.
The weighted index fell 35.92 points on Friday to 8,166.62, after moving between 8,129.21 and 8,190.96, on turnover of NT$120.49 billion (US$3.82 billion).
The market opened down 0.25 percent on Wall Street’s overnight fall, and selling continued amid fears that more disappointing US economic data will follow the latest worse-than-expected jobless claims, dealers said.
Grand Cathay Securities (大華證券) analyst Mars Hsu said pressure around the 8,200-point level remained strong, although the index closed above that on Thursday.
“So, investors witnessed selling right after the market opened this morning, in particular after sentiment was dampened by the Wall Street decline,” Hsu said.
Hsu said the market was also affected by a reported increase in existing US home sales for last month.
“The market is full of conflicting economic information. Such uncertainty is the last thing it wants to have, “ Hsu said. “Cutting holdings and retaining cash may be the wise thing to do for the moment.”
Other markets on Friday:
Manila rose 0.28 percent, or 11.45 points, to 4,078.87.
Wellington closed 0.52 percent, or 16.87 points, lower at 3,211.16.
Mumbai rose 0.93 percent, or 184.17 points, to 20,045.18. The market closed at its highest since January 2008.
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
RSS