Asian stocks rose for a seventh consecutive week, the longest winning streak in almost four years, as strengthening economic and corporate earnings data boosted confidence in a global recovery.
The MSCI Asia-Pacific Index rose 0.69 percent this week to 131.03, led by energy and materials companies. The gauge’s seventh straight weekly increase is its longest stretch of gains since December 2006.
“The positive tone of recent economic and earnings releases is generating a growing momentum of confidence,” said Tim Schroeders, who helps manage about US$1 billion at Pengana Capital Ltd in Melbourne. “Asian markets are attractive because investors are increasingly looking to faster--growing economies that are less reliant on policy stimulus to achieve adequate rates of return.”
Japan’s was one of only three major regional equity markets to decline this week, with the Nikkei 225 Stock Average dropping 0.9 percent.
Hong Kong’s Hang Seng Index advanced 3.6 percent, South Korea’s KOSPI Index climbed 0.3 percent and China’s Shanghai Composite Index jumped 8.5 percent.
“China will boost demand globally,” said Koichi Kurose, chief strategist in Tokyo at Resona Bank Ltd, which manages about US$57 billion.
Taiwan’s TAIEX fell 10.15 points, or 0.12 percent, to 8,205.30 at the 1:30pm close in Taipei trading on Friday. The benchmark index slid 0.5 percent this week.
Taiwanese share prices were hampered by a tug-of-war between rotational buying of select old economy stocks and selling of high-tech sector shares, which were haunted by gloom over the industry’s earnings outlook, dealers said.
“Ahead of an earnings report period to start later this month, uncertainty over the electronics sector’s profitability continued to haunt high-tech stocks,” TLG Asset Management (台壽保投信) analyst Arch Shih (施博元) said.
Shih said a rising NT dollar has dampened market sentiment on fears that weakening export competitiveness would further hurt the sector’s bottom line at a time when global demand has appeared to slow.
“I suspect foreign institutional investors kept unloading electronics stocks, in particular semiconductor related firms, today,” Shih said.
In other markets on Friday:
Mumbai fell 1.82 percent, or 372.59 points, from Thursday to 20,125.05 as investors took profits ahead of a mega-share sale by state-run Coal India starting next week and despite better-than--expected earnings from software giant Infosys.
Software stocks fell after running up smartly ahead of the earnings season.
Wellington fell 0.21 percent, or 6.76 points, from Thursday to 3,255.85.
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