Asian stocks on Friday followed US shares higher, with the regional benchmark index rising to an eight-week high, as financial companies led gains.
Industrial and Commercial Bank of China (中國工商銀行) rose 0.8 percent in Hong Kong, pacing gains among Chinese lenders, as data showed the nation’s broadest measure of new credit exceeded estimates. AIA Group, the third-most valuable Asia-based insurer, climbed 3.4 percent in Hong Kong after its quarterly new business value beat analyst estimates.
Fortescue Metals Group rose 4.8 percent in Sydney after Australia’s third-largest iron ore producer vowed to reward shareholders with dividends even while it seeks to trim debt and rivals slash payouts.
The MSCI Asia Pacific Index added 0.4 percent to 134.51 in Hong Kong. The measure climbed 0.9 percent this week for its third weekly advance.
Global equities resumed their recovery this month, with US stocks rising to an eight-week high amid strong bank earnings and mounting speculation the US Federal Reserve would put off raising interest rates until next year. Investors do not see better-than-even odds of rates increasing until March next year, with a 30 percent chance of liftoff by December.
“The Fed probably won’t move rates yet and that could help support the share markets,” Tony Farnham, a Sydney-based strategist at Patersons Securities Ltd, said by telephone. “While the global economy isn’t taking off as people would like it to, it’s not as if we’re falling into a deep abyss. There are some spots in the global economy that are not so dire.”
The Shanghai Composite Index advanced 1.6 percent, extending this week’s gain to 6.5 percent, the most since June, as traders speculated the government would accelerate reforms of state-owned companies (SOE) and credit data suggested measures to boost lending are gaining traction. Aggregate financing rose to 1.3 trillion yuan (US$205 billion), from an originally reported 1.08 trillion yuan in August, a report by the People’s Bank of China said. That exceeded the median estimate for 1.2 trillion yuan in a survey of economists.
“The central bank has loosened its tap on liquidity and SOE reform will continue through the year,” said Wei Wei (魏瑋), an analyst at Huaxi Securities Co (華西證券) in Shanghai. “It’s a good time window for stocks now and the rebound will probably carry on.”
Japan’s TOPIX climbed 1 percent. Taiwan’s TAIEX closed little changed. Singapore’s Straits Times Index added 0.5 percent. New Zealand’s S&P/NZX 50 Index rose 0.8 percent. Australia’s S&P/ASX 200 Index gained 0.7 percent. South Korea’s KOSPI lost 0.2 percent.
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
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