"Even to the extent that the US will raise interest rates 25 basis points this month, we don't think Hong Kong or China will follow at this stage," said David Chapman, who helps manage US$500 million at Towry Law Asia HK Ltd in Hong Kong.
In Taiwan, the adjustments by MSCI mean that the nation will account for 27 percent of the MSCI All Country Asia-Pacific excluding Japan Index, exceeding both South Korea and Hong Kong.
"The MSCI move is surely a positive factor that will help bring in more foreign funds in the mid to long-term," said Kevin Lin, who manages the equivalent of US$60 million as an asset manager at Shinkong Investment Trust Co (
Cathay Financial Holding Co (國泰金控), Taiwan's largest financial group, climbed 6.8 percent this week, while Mega Financial Holding Co (兆豐金控), advanced 7.2 percent.
Other gainers in the region included mining stocks in Indonesia. PT Bumi Resources, the country's largest coal exporter, and PT Aneka Tambang, a state-controlled nickel and gold mining company, advanced on optimism prices for coal and the metals may continue to rise. They were the best-performers on the MSCI Asia-Pacific Index this week.
Berjaya Sports Toto Bhd tumbled 9.9 percent after Malaysia's second-largest lottery company by sales took over its parent's share of losses in a unit, prompting some analysts to downgrade their recommendations for the stock.
In Japan, UFJ Holdings Inc shares slumped after the country's banking regulator said it would inspect the lender's internal controls and business performance every three months after it evaded audits and failed to meet profit targets.
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