Asian stocks rose, with the regional benchmark index posting a two-week advance, as the yen capped its steepest weekly decline this year after the Bank of Japan boosted lending programs and US manufacturing expanded.
Toyota Motor Corp, which gets 31 percent of its sales in North America, gained 2.9 percent in Tokyo. BHP Billiton Ltd, the world’s largest mining company, climbed 3.9 percent in Sydney after posting first-half profit that beat estimates. China Petroleum & Chemical Corp (中國石化), Asia’s biggest refiner, surged 8.4 percent in Hong Kong after the company said it was seeking investment for a stake in its retail unit.
The MSCI Asia Pacific Index advanced 1.5 percent to 137.4 this week. Through Friday, the equity benchmark has climbed 1.9 percent this month, rebounding from a slump last month, as US Federal Reserve Chair Janet Yellen’s first testimony to congress boosted optimism in the world’s biggest economy. Reports this week showed US factory activity this month surpassed economists’ estimates, while the number of Americans applying for jobless benefits dropped. The yen fell as much as 0.9 percent against the US dollar.
“Investors have used the January selloff as an opportunity to hunt for bargains,” Desmond Chua, an analyst at CMC Markets in Singapore, said by phone. “Valuations in Asia look fair. In order for the markets to continue this current upward trajectory, economic data has to outperform a lot more.”
The MSCI Asia Pacific Index traded on Friday at 12.9 times estimated earnings of its constituent companies, compared with 15.6 for the Standard & Poor’s 500 Index and 14.5 for the STOXX Europe 600 Index, according to data compiled by Bloomberg.
Taiwan’s TAIEX gained 1 percent this week after adding 77.24 points on Friday to close at 8,601.86. Friday’s advance was led by bellwether electronics stocks, in particular smartphone camera lens supplier Largan Precision Co (大立光), while old economy and financial stocks also attracted bargain-hunters, dealers said.
Overnight gains on Wall Street propelled the local bourse past the 8,600 mark on Friday, President Securities (統一證券) analyst Vickie Hsieh (謝雯霞) said.
“The electronics sector, especially optoelectronics stocks, served as a driver to push up the broader market,” Hsieh said, with Largan rising by the 7 percent maximum daily limit to NT$1,245.
Taiwan Semiconductor Manufacturing Co (台積電), the most heavily weighted stock in the local market, rose 0.94 percent to NT$107.50, while Hon Hai Precision Industry Co (鴻海精密), an assembler of Apple Inc’s iPhones and iPads, gained 1.09 percent to NT$83.70.
Japan’s TOPIX advanced 3.3 percent this week, the biggest gain in three months. The Bank of Japan (BOJ) pledged to maintain plans to expand the monetary base by ¥60 trillion to ¥70 trillion (US$585 billion to US$682 billion) per year and boosted lending programs as policymakers seek to revive the world’s third-biggest economy.
“Japan is in a unique situation as the BOJ continues to add stimulus, while the Fed is beginning to taper,” said Nader Naeimi, Sydney-based head of dynamic asset allocation at AMP Capital. “Liquidity tightening in China shouldn’t be a concern as policy makers need to mop up excess liquidity. There’s enough credit available in China to support growth.”
China’s central bank sold repurchase contracts this week for the first time since June, draining funds from the banking system. The move came after aggregate financing, the broadest measure of credit, climbed to a record 2.58 trillion yuan (US$424 billion) last month, data showed Feb. 15.
The Shanghai Composite Index advanced on Monday after the credit report before ending the week 0.1 percent lower. A private gauge of Chinese manufacturing fell to a seven-month low, data showed on Thursday.
The Philippines Stock Exchange Index jumped 3.2 percent this week, while Hong Kong’s Hang Seng Index rose 1.2 percent on the week. South Korea’s KOSPI also increased 0.9 percent, Australia’s S&P/ASX 200 Index climbed 1.5 percent, New Zealand’s NZX 50 Index added 0.8 percent and Singapore’s Straits Times Index gained 2 percent.
Taiwan Transport and Storage Corp (TTS, 台灣通運倉儲) yesterday unveiled its first electric tractor unit — manufactured by Volvo Trucks — in a ceremony in Taipei, and said the unit would soon be used to transport cement produced by Taiwan Cement Corp (TCC, 台灣水泥). Both TTS and TCC belong to TCC International Holdings Ltd (台泥國際集團). With the electric tractor unit, the Taipei-based cement firm would become the first in Taiwan to use electric vehicles to transport construction materials. TTS chairman Koo Kung-yi (辜公怡), Volvo Trucks vice president of sales and marketing Johan Selven, TCC president Roman Cheng (程耀輝) and Taikoo Motors Group
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
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
RECORD-BREAKING: TSMC’s net profit last quarter beat market expectations by expanding 8.9% and it was the best first-quarter profit in the chipmaker’s history Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which counts Nvidia Corp as a key customer, yesterday said that artificial intelligence (AI) server chip revenue is set to more than double this year from last year amid rising demand. The chipmaker expects the growth momentum to continue in the next five years with an annual compound growth rate of 50 percent, TSMC chief executive officer C.C. Wei (魏哲家) told investors yesterday. By 2028, AI chips’ contribution to revenue would climb to about 20 percent from a percentage in the low teens, Wei said. “Almost all the AI innovators are working with TSMC to address the