Sun, Jun 21, 2015 - Page 15 News List

Most Asian stocks outside Shanghai register gains

Bloomberg and staff writer, with CNA

Asian stocks outside China rose for a second day on Friday, following gains in US shares, led by industrial and financial companies. Equities in Shanghai tumbled, posting the biggest weekly drop since June 2008.

The Shanghai Composite Index fell 6.4 percent on Friday amid growing concern that China’s longest-ever bull market has propelled valuations to unsustainable levels.

“With Chinese authorities wanting the share market to be strong, but not manic, the latest share market correction means that it wouldn’t be surprising to see another People’s Bank of China rate cut or required reserve ratio reduction soon,” said Shane Oliver, global strategist at AMP Capital Investors Ltd in Sydney. “Volatility is to be expected as it has risen a bit too far, too fast.”

The Shanghai Composite, which reached the highest level since 2008 on Friday last week, has since tumbled 13 percent. Analysts are increasingly warning stocks will fall after the gauge more than doubled in the past 12 months.

The bull market, which turned 928 days old on Friday, is the longest since Chinese bourses opened for trading in 1990 and more than five times the average lifespan of the nation’s previous bull markets.

The MSCI Asia Pacific Index climbed 0.554 percent to 147.18 on Friday in Hong Kong, paring this week’s slide to 0.7 percent. The Standard & Poor’s 500 Index jumped 1 percent on Thursday in New York and the NASDAQ Composite Index closed at a record high after the US Federal Reserve signaled it would continue to support the economy even as growth picks up.

In Taipei, shares staged a rebound on Thursday to close above the 9,200-point mark as investors took their cue from Wall Street’s overnight rally. Markets were closed on Friday for a holiday. The TAIEX closed 0.31 percent higher at 9,218.37 on Thursday, paring this week’s losses to 0.9 percent.

Outside of China, most markets in the region also rose on Friday. Tokyo ended 0.9 percent higher, Sydney rose 1.3 percent and Seoul gained 0.3 percent. Mumbai and Wellington each gained 0.6 percent, Jakarta rose 0.8 percent, Hong Kong added 0.3 percent and Singapore edged up 0.02 percent.

Bangkok dropped 1.1 percent, while Manila was marginally lower, dipping 5.69 points to 7,601.17.

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