Asian stocks rose, erasing an early loss, after Japanese shares posted their biggest rally in two weeks as the yen dropped for the first time in six days.
The MSCI Asia Pacific Index rose 0.4 percent to 126.36 in Hong Kong on Friday, wiping out an earlier loss of as much as 1.4 percent. The measure closed 0.3 percent higher from last week.
Japan’s TOPIX climbed 1.2 percent, the most since March 22, with exporters from Nissan Motor Co to Nintendo Co rising at least 1.7 percent as the yen weakened after Japanese Minister of Finance Taro Aso said rapid currency movements were undesirable and action would be taken as needed.
“Investors are going to be trading stocks based on how the yen moves for a while longer,” said Masahiro Ichikawa, a senior strategist at Sumitomo Mitsui Asset Management Co. “The currency showing signs of weakness today has prompted repurchases in shares.”
Investors are pausing for breath at the end of a wild week that saw equities whipsawed as volatility in the US$5.3 trillion-a-day foreign-exchange market climbed toward a 2011 high. An element of anxiety returned to financial markets after minutes from the US Federal Reserve’s meeting last month emphasizing concern over the global economy and IMF managing director Christine Lagarde signaling the organization was likely to lower its outlook for world growth.
In Taipei, the market staged a technical rebound and finished higher on Friday after three consecutive days of losses as bargain hunters stepped in to push the benchmark index above 8,500 points, dealers said.
Buying focused on large-cap stocks, in particular bellwether electronics stocks such as contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), and flat-panel makers AU Optronics Corp (AUO, 友達光電) and Innolux Corp (群創), to offset selling caused by losses on US market overnight, they said.
The TAIEX closed at 8,541.50 on Friday, up 0.6 percent from Thursday, but down 1.3 percent from Friday last week.
“It seemed that technical support ahead of 8,400 points was strong, as the stock market remained awash in liquidity after recent foreign fund inflows,” Concord Securities Co (康和證券) analyst Kerry Huang said.
“It’s not surprising that many investors appeared willing to buy to take advantage of relatively low valuations after recent selling,” he said.
“TSMC’s gains contributed about 25 points to the weighted index today,” he added.
TSMC, the most heavily weighted stock in the market, rose 1.94 percent to close at NT$157.50. AUO added 7.77 percent to end at NT$9.71 amid hopes that its participation in the ongoing China Information Technology Expo in Shenzhen as an exhibitor would create business opportunities.
Buying in AUO spread to Innolux, which closed up 3.26 percent at NT$11.10.
In the non-high-tech sector, food maker Uni-President Enterprises Corp (統一企業) rose 0.72 percent to NT$55.60, and Nan Ya Plastics Corp (南亞塑膠) gained 1.23 percent to NT$65.60.
Textile supplier Far Eastern New Century Corp (遠東新世紀) fell 1.62 percent to NT$24.25.
Fubon Financial Holding Co (富邦金控) rose 0.76 percent to NT$39.60 after it set the issue price for 600 million preferred shares at NT$60.
South Korea’s KOSPI fell 0.1 percent. Australia’s S&P/ASX 200 Index slid 0.5 percent. New Zealand’s S&P/NZX 50 Index retreated 0.4 percent. Singapore’s Straits Times Index lost 0.3 percent. Hong Kong’s Hang Seng Index increased 0.5 percent.
China’s Shanghai Composite Index fell 0.8 percent, sliding for a third day. Investors speculated that next week’s inflation data would make it difficult for the government to further ease monetary policy.
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