Asian stocks rose this week after US data and earnings boosted optimism about the world’s biggest economy, while further signs of a slowdown in China stoked speculation the government will add stimulus to stabilize growth.
The MSCI Asia Pacific Index gained 0.9 percent to 139.16 this week. US industrial production increased more than forecast last month and US Federal Reserve Chair Janet Yellen said the central bank remained committed to supporting the recovery.
“Confidence grew about the global economy and that was the No. 1 driver for the market,” said Junya Naruse, chief strategist at Daiwa Securities Group Inc, Japan’s second-largest brokerage. “Shares have yet to start a strong rally, but investors are getting confident that at least downside risk has receded.”
Man Wah Holdings Ltd, a sofa maker that gets half its sales from the US, surged 5.9 percent in Hong Kong after saying it expects higher profit. SoftBank Corp, which owns about 37 percent of Alibaba Group Holding Ltd (阿里巴巴), soared 10 percent in Tokyo after Alibaba’s quarterly profit more than doubled ahead of a planned US initial public offering. CapitaMalls Asia Ltd jumped a record 21 percent in Singapore after CapitaLand Ltd, Southeast Asia’s biggest developer, offered to buy out investors in its mall unit.
In Taipei, the Taiwan Stock Exchange index rose 0.7 percent to 8,966.66 this week. The index breached the 9,000 mark on Friday, but retreated at close as investors locked in earlier gains, although it still ended up from the previous day, dealers said.
Market bellwether Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) surged on Friday on better-than-expected second-quarter sales guidance, but other electronics heavyweights suffered a pullback that limited their gains, the dealers said.
Asia Securities Investment Consultant (亞洲投顧) analyst Chang Chih-cheng (張智誠) said the strength of TSMC helped the broader market float above the previous close after the chipmaker said on Thursday that its consolidated sales for the second quarter would rise between 21.5 and 23.5 percent from the first quarter, beating consensus estimates of an increase of 14 to 18 percent.
The property sector underperformed the broader market amid fears that the Taipei City Government would introduce new measures to curb rising home prices in the capital, they added.
The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong, also known as the H-share index, dropped 1.4 percent this week. Hong Kong’s Hang Seng Index declined 1.1 percent. The Shanghai Composite Index lost 1.5 percent.
China’s GDP rose 7.4 percent from a year earlier in the first quarter, the statistics bureau said on Wednesday, the weakest pace of expansion in six quarters.
China is to lower reserve ratios at “qualified” rural banks in order to provide more funds to agriculture-related industries, according to a statement on the government Web site on Friday, citing a State Council meeting chaired by Premier Li Keqiang (李克強). He also said the nation is not considering “strong” stimulus, and reiterated that economic growth a bit higher or lower than 7.5 percent is within a reasonable range.
Japan’s TOPIX added 3.5 percent as the yen weakened. The Cabinet Office cut its economic view this month for the first time since Japanese Prime Minister Shinzo Abe came to power in 2012, citing the sales-tax increase at the start of the month.
South Korea’s KOSPI gained 0.3 percent. Australia’s S&P/ASX 200 Index advanced 0.5 percent, while New Zealand’s NZX 50 Index added 0.2 percent. Singapore’s Straits Times Index climbed 1.7 percent.
Markets in Hong Kong, Singapore, Australia, New Zealand, India and the Philippines were closed for a holiday on Friday.
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],”
Sales in the retail, and food and beverage sectors last month continued to rise, increasing 0.7 percent and 13.6 percent respectively from a year earlier, setting record highs for the month of March, the Ministry of Economic Affairs said yesterday. Sales in the wholesale sector also grew last month by 4.6 annually, mainly due to the business opportunities for emerging applications related to artificial intelligence (AI) and high-performance computing technologies, the ministry said in a report. The ministry forecast that retail, and food and beverage sales this month would retain their growth momentum as the former would benefit from Tomb Sweeping Day
Thousands of parents in Singapore are furious after a Cordlife Group Ltd (康盛人生集團), a major operator of cord blood banks in Asia, irreparably damaged their children’s samples through improper handling, with some now pursuing legal action. The ongoing case, one of the worst to hit the largely untested industry, has renewed concerns over companies marketing themselves to anxious parents with mostly unproven assurances. This has implications across the region, given Cordlife’s operations in Hong Kong, Macau, Indonesia, the Philippines and India. The parents paid for years to have their infants’ cord blood stored, with the understanding that the stem cells they contained