Asian stocks were mostly higher on Friday, after a steadier performance on Wall Street provided some relief for investors whose nerves have been sorely tested after another round of dizzying losses.
Dealers said the bounce was technical in nature and while the respite was welcomed, few were prepared to bet that the massive sell-offs, which have dominated trade since the middle of last month, had come to an end.
A White House forecast predicting a growth rate of 3.6 percent for the US economy this year eased concerns about a slowdown or even a recession and lifted Wall Street from the doldrums, giving markets in Asia a boost too.
But concerns that higher interest rates will accompany slowing economic growth -- the worst possible combination for equities -- persisted, and volumes were thin and gains less than convincing.
In response to Wall Street's modest gains, Sydney climbed 1.2 percent, Seoul was 1.02 percent higher, Hong Kong up 1.16 percent and Tokyo gained 0.81 percent with trade also aided by a jump in domestic machinery orders.
Many fear that unlike other sharp corrections of recent years this massive correction could signal the end of a three-year bull run, with higher interest rates expected to wind-down a consumption boom fuelled by debt.
Such feelings were evident in Manila where shares closed flat, with Shanghai down 2.49 percent and Wellington off 0.77 percent.
Elsewhere, Mumbai continued its rollercoaster ride with a 5.54 percent gain, Jakarta was up 2.69 percent, Singapore 1.75 percent higher while Bangkok and Kuala Lumpur were down 0.77 and 0.20 percent respectively.
taipei
Share prices closed 1.78 percent higher on a technical rebound as investors set aside domestic and external concerns and hunted for bargains in a market that had been badly battered over the past sessions.
Dealers said the prospect of a sustainable rise, however, remains doubtful due to continuing concerns over the prospect of further US rate hikes and opposition attempts to oust President Chen Shui-bian (陳水扁) amid alleged corruption scandals implicating his family and top aides.
The weighted index closed up 112.82 points at 6,444.63 on turnover of NT$118.61 billion (US$3.65 billion).
"It's purely technical ... the steeper the previous declines, the more dramatic the rebound," said Oliver Fang, a Yuanta Core Pacific Securities assistant vice president who serves mainly foreign investors.
"It's too early to say if we are already out of the woods yet," he said. "All the uncertainties that had triggered the recent downturn remain firmly in place."
Acer rose 1.80 to 53.00.
tokyo
Share prices broke a four-day loosing streak after a jump in domestic machinery orders provided much-needed relief to investors sweating over US inflation.
The Nikkei-225 index rose 117.81 points or 0.81 percent to 14,750.84, a day after slumping below 15,000 points for the first time in six months on worries about higher US interest rates.
Volume reached 3.17 billion shares, up from 2.65 billion on Thursday.
Stocks managed to eke out gains by the close after a dismal week during which the Nikkei lost 6.6 percent of its value and the TOPIX 6.7 percent.
Stocks swung in and out of negative territory until winning a boost from the machinery orders data, a leading indicator of corporate capital investment which come in stronger than expected.
Core private-sector machinery orders surged 10.8 percent in April from March, well above the 3.7 percent rise expected by the market.
"The outcome clearly shows that corporate capital investment has maintained a firm trend against all the odds, and we believe there is even the chance that the rise here may gain further momentum in the near term," said Mitsubishi Research and Consulting senior economist Tatsushi Shikano.
SEOUL
Share prices closed 1.02 percent higher on Friday, ending a three-day steep decline as bargain hunters picked up oversold stocks.
Dealers said the market fell below the 1,220 point-level at one stage due to a massive sell-off by foreign investors but rebounded after program selling eased in late trade.
The KOSPI index added 12.52 points at 1,235.65. Volume was 226 million shares worth 3.2 trillion won. Rises outnumbered falls 592 to 187.
"Bargain hunters flowed in, driving the index up today," Kium.com Securities analyst Kim Hyoung-Ryoul, adding the market would show a limited upside for the time being although it has succeeded in applying the brakes during the recent wave of panic selling.
hong kong
Share prices closed 1.16 percent higher on a technical rebound led by China Mobile and HSBC after three straight days of falls.
Dealers said the Tokyo bourse's gains also provided some support but sentiment remained tentative given the recent heavy losses on concerns inflation will push US interest rates higher even at the risk of slower growth.
The Hang Seng Index rose 178.58 points at 15,628.69. Turn-over was HK$33.38 billion (US$4.28 billion).
"The market extended its gains in the afternoon as it drew support from interest in selected blue chips such as HSBC and China Mobile," said Jackson Wong, investment manager at Tanrich Securities.
"Investors' confidence was restored a bit after the rebound in Japanese market ... they started chasing selected stocks which had fallen sharply in previous sessions," he said.
Wong said, however, that the uncertainty over interest rates is likely to continue affecting the market's performance.
"I expect the market to continue to be volatile and its performance will depend heavily on US economic and inflation data, but the market should see strong support at the 15,200 points level," Wong noted.
Stephen Garrett, a 27-year-old graduate student, always thought he would study in China, but first the country’s restrictive COVID-19 policies made it nearly impossible and now he has other concerns. The cost is one deterrent, but Garrett is more worried about restrictions on academic freedom and the personal risk of being stranded in China. He is not alone. Only about 700 American students are studying at Chinese universities, down from a peak of nearly 25,000 a decade ago, while there are nearly 300,000 Chinese students at US schools. Some young Americans are discouraged from investing their time in China by what they see
MAJOR DROP: CEO Tim Cook, who is visiting Hanoi, pledged the firm was committed to Vietnam after its smartphone shipments declined 9.6% annually in the first quarter Apple Inc yesterday said it would increase spending on suppliers in Vietnam, a key production hub, as CEO Tim Cook arrived in the country for a two-day visit. The iPhone maker announced the news in a statement on its Web site, but gave no details of how much it would spend or where the money would go. Cook is expected to meet programmers, content creators and students during his visit, online newspaper VnExpress reported. The visit comes as US President Joe Biden’s administration seeks to ramp up Vietnam’s role in the global tech supply chain to reduce the US’ dependence on China. Images on
New apartments in Taiwan’s major cities are getting smaller, while old apartments are increasingly occupied by older people, many of whom live alone, government data showed. The phenomenon has to do with sharpening unaffordable property prices and an aging population, property brokers said. Apartments with one bedroom that are two years old or older have gained a noticeable presence in the nation’s six special municipalities as well as Hsinchu county and city in the past five years, Evertrust Rehouse Co (永慶房產集團) found, citing data from the government’s real-price transaction platform. In Taipei, apartments with one bedroom accounted for 19 percent of deals last
US CONSCULTANT: The US Department of Commerce’s Ursula Burns is a rarely seen US government consultant to be put forward to sit on the board, nominated as an independent director Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday nominated 10 candidates for its new board of directors, including Ursula Burns from the US Department of Commerce. It is rare that TSMC has nominated a US government consultant to sit on its board. Burns was nominated as one of seven independent directors. She is vice chair of the department’s Advisory Council on Supply Chain Competitiveness. Burns is to stand for election at TSMC’s annual shareholders’ meeting on June 4 along with the rest of the candidates. TSMC chairman Mark Liu (劉德音) was not on the list after in December last