Lower-than-expected Chinese inflation data and a surprise drop in Australian unemployment buoyed sentiment in Asian markets yesterday, but caution remained over the debt-hit eurozone.
Investors also contemplated Wall Street’s reaction to comments from Federal Reserve Chairman Ben Bernanke on an exit strategy from massive stimulus, which saw US stocks pare recent gains as risk appetite withered.
Many investors were also closely watching for signs the EU would move to address the debt troubles engulfing the eurozone. Chinese shares rose 0.16 percent in the afternoon as last month’s lower-than-expected inflation data eased concerns over imminent monetary tightening measures, dealers said.
Hong Kong added 1.86 percent. The benchmark Hang Seng Index advanced 368.47 points to end at 20,290.69. Turnover was HK$52.93 billion (US$6.81 billion US).
Chinese shares closed up 0.10 percent in thin trading as investors preferred to stay on the sidelines ahead of the week-long Lunar New Year holiday, which starts this weekend, dealers said.
The Shanghai Composite Index, which covers both A and B shares, was up 3 points at 2,985.50 on turnover of 64.9 billion yuan (US$9.5 billion).
Sydney’s S&P/ASX 200 closed up 40.9 points, or 0.9 percent, at 4,554.3 following the surprise drop in unemployment to 5.3 percent last month, from 5.5 percent the previous month.
Materials, financials and energy were the top performers with mining giant Rio Tinto up 2.6 percent before reporting full-year profits were 33 percent higher at US$4.87 billion. Rival BHP Billiton rose 1.2 percent.
Singapore was 0.56 percent up in afternoon trade. Tokyo and Taipei were closed for a public holiday.
EU heads of state and government were to meet in Brussels yesterday for a summit focused on supporting Greece and preventing the crisis there from spreading to rest of the eurozone.
“There is an enormous amount of anticipation of an announcement on Greece,” RBS head of Sydney sales trading Justin Gallagher said. “The market will need to see definitive action from the EU.”
The euro climbed to US$1.3781 in Singapore afternoon trading from US$1.3732 in New York late on Wednesday and to ¥123.87 from ¥123.44.
The US dollar eased to ¥89.89 from ¥89.92.
Wall Street provided a weak lead, with the Dow Jones Industrial Average falling 0.21 percent in thin trade. Bernanke’s comments evoked mixed reactions about when the Fed may exit from a massive stimulus.
“We have been working to ensure that we have the tools to reverse, at the appropriate time, the currently very high degree of monetary stimulus,” Bernanke said. “We have full confidence that, when the time comes, we will be ready to do so.”
Independent market analyst Larry Doyle took this as a sign that Bernanke “will soon start to raise selected rates.”
In other markets, Seoul closed 1.76 percent, or 27.69 points, higher at 1,597.81 after South Korea’s central bank froze its key interest rate at a record low for the 12th successive month.
Manila closed 1.81 percent higher as the composite index added 51.64 points to 2,908.88, while Wellington fell 0.66 percent with the NZX-50 index down 20.23 points to 3,065.28.
Among the rows of vibrators, rubber torsos and leather harnesses at a Chinese sex toys exhibition in Shanghai this weekend, the beginnings of an artificial intelligence (AI)-driven shift in the industry quietly pulsed. China manufactures about 70 percent of the world’s sex toys, most of it the “hardware” on display at the fair — whether that be technicolor tentacled dildos or hyper-realistic personalized silicone dolls. Yet smart toys have been rising in popularity for some time. Many major European and US brands already offer tech-enhanced products that can enable long-distance love, monitor well-being and even bring people one step closer to
Malaysia’s leader yesterday announced plans to build a massive semiconductor design park, aiming to boost the Southeast Asian nation’s role in the global chip industry. A prominent player in the semiconductor industry for decades, Malaysia accounts for an estimated 13 percent of global back-end manufacturing, according to German tech giant Bosch. Now it wants to go beyond production and emerge as a chip design powerhouse too, Malaysian Prime Minister Anwar Ibrahim said. “I am pleased to announce the largest IC (integrated circuit) Design Park in Southeast Asia, that will house world-class anchor tenants and collaborate with global companies such as Arm [Holdings PLC],”
TRANSFORMATION: Taiwan is now home to the largest Google hardware research and development center outside of the US, thanks to the nation’s economic policies President Tsai Ing-wen (蔡英文) yesterday attended an event marking the opening of Google’s second hardware research and development (R&D) office in Taiwan, which was held at New Taipei City’s Banciao District (板橋). This signals Taiwan’s transformation into the world’s largest Google hardware research and development center outside of the US, validating the nation’s economic policy in the past eight years, she said. The “five plus two” innovative industries policy, “six core strategic industries” initiative and infrastructure projects have grown the national industry and established resilient supply chains that withstood the COVID-19 pandemic, Tsai said. Taiwan has improved investment conditions of the domestic economy
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