FTSE Group, a global index compiler, may decide next month to upgrade South Korea and Taiwan to developed market status in its global equity indexes, according to a report by CLSA Asia-Pacific Markets. \nLast week, Morgan Stanley Capital International Inc, FTSE's bigger rival, said it's studying the inclusion of countries such as South Korea and Taiwan to its developed market series of global benchmarks. \nFTSE will announce the results of a study on market classification next month, "which would likely propel Taiwan and South Korea into the developed market series," CLSA's Chris Lobello and Dodo Cheng wrote in a note to clients dated yesterday. \nA move to developed market status for South Korea and Taiwan would likely mean an increase in overseas funds as the markets will be seen as less risky. \nFTSE has three classifications for countries: developed, advanced emerging and emerging. \nTaiwan and South Korea, home to Asia's fifth- and sixth-largest stock markets by value, are in the advanced emerging class. \n"Even small tweaks to how the US$2.5 trillion benchmarked against the FTSE worldwide is spread around mean big differences for Asia," Lobello and Cheng wrote. \nAverage trading activity in Greece, the last country to be upgraded from Advanced Emerging to Developed status, doubled following the nation's promotion, the CLSA report said. \nThe TAIEX gained 0.4 percent to 6488.34, and South Korea's Kospi index rose 0.2 percent to 866.80 at their market closes yesterday. \nFTSE wrote in November in its consultation paper sent to clients that "the status of all advanced emerging markets has been reviewed and no changes are recommended at this time." \nSouth Korea and Taiwan "would be put on the index compiler's so-called Watch List and with the possibility that the two markets may be promoted to developed status in 2005," the consultation paper said. \nCompanies such as South Korea's Samsung Electronics Co, the world's largest maker of memory chips, and Taiwan Semiconductor Manufacturing Co (台積電), the world's largest supplier of made-to-order semiconductors, are among stocks that may benefit, they said. \nOn Friday, Toshiaki Matsumae, head of MSCI's Tokyo office, said "MSCI has been studying South Korea as it's one of the key markets in the emerging markets" and that Taiwan is another country under consideration.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion