Asian stocks rose for a sixth week on speculation policymakers will do more to spur economic growth after Japan’s central bank cut its benchmark interest rate and Australia unexpectedly kept its key rate unchanged.
The MSCI Asia-Pacific Index rose 2.4 percent this week to 130.13, and climbed to a two-year high on Thursday. The gauge had its biggest quarterly increase of the past year in the three months to last month amid signs the US economy is regaining momentum and that China’s economic expansion will continue.
“Investor sentiment has been buoyed by the surprise decision by the Bank of Japan,” said Tim Schroeders, who helps manage about US$1 billion at Pengana Capital Ltd in Melbourne. “We’re starting to get a second wave of stimulus measures in major economies at a time when investors had previously thought the strength of the global recovery was waning.”
Hong Kong’s Hang Seng Index climbed 2.6 percent this week, while Australia’s S&P/ASX 200 index gained 2.2 percent and South Korea’s KOSPI rose 1.1 percent.
Japan’s Nikkei 225 Stock Average rose 2 percent. The Bank of Japan pledged on Tuesday to expand its balance sheet by ¥5 trillion (US$60 billion), aiming to shore up the nation’s slowing economic recovery. It lowered the benchmark interest rate to a range of 0 to 0.1 percent from the previous 0.1 percent target.
China’s non-manufacturing industries expanded at a faster pace last month behind increases in construction and consumer spending. A purchasing managers’ index released last Sunday by the China Federation of Logistics and Purchasing rose to 61.7 from 60.1 in August.
Taiwanese share prices closed 0.48 percent lower on Friday amid lingering fears that a strengthening local currency could undermine Taiwan’s global competitiveness, dealers said.
The TAIEX fell 39.73 points to 8,244.19 on turnover of NT$114.44 billion (US$3.72 billion).
“A stronger Taiwan dollar still weighed on market sentiment,” Hua Nan Securities (華南證券) analyst Stan Chang said. “Along with the upside of other Asian currencies against the greenback, the Taiwan dollar could not be isolated. The local bourse was affected accordingly.”
In other markets on Friday:
Manila edged down 0.20 percent, or 8.07 points, from Thursday to 4,236.98.
Wellington slipped 0.11 percent, or 3.42 points, from Thursday to end at 3,232.66.
Mumbai slipped 0.32 percent, or 65.06 points, from Thursday to 20,250.26.
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