Asian equities rose on Friday as Chinese financials gained ahead of earnings next week and Japanese automaker shares advanced after the yen slipped against the US dollar.
The MSCI Asia Pacific Index added 0.2 percent to 160.35 as of 4:26pm in Hong Kong, capping its second consecutive weekly increase.
The weighted index on the Taiwan Stock Exchange closed up 26.55 points, or 0.25 percent, at 10,515.51, up 1.9 percent from last week’s 10,321.33 points.
Hong Kong stocks rose for the fourth consecutive session, finishing the week with a strong gain as forecast-beating results from major Chinese firms boosted investor confidence.
Better-than-expected earnings from major companies, such as CNOOC Ltd (中國海洋石油) and China Life Insurance Co (中國人壽) and more optimistic prospects for China’s economy helped offset investor wariness ahead of global central bankers’ speeches at a symposium in Jackson Hole, Wyoming.
Macau’s casino shares dropped after the territory said it will stop receiving group tours.
The Hang Seng Index rose 1.2 percent to 27,848.16, its highest closing level since Aug. 8. It gained 3 percent for the week.
The China Enterprises Index, which tracks Chinese companies, rose 2.2 percent to 11,288.36 points, up 5.6 percent for the week.
Investors, who just months ago worried about the sustainability of China’s recovery, now appear more convinced that the country’s economic momentum will likely remain solid through the rest of the year after a spate of corporate earnings beat estimates.
The energy sub-index jumped more than 2 percent, led by Chinese oil giants Sinopec Corp (中國石油化工), PetroChina Co (中國石油天然氣) and CNOOC.
“It’s more of a China-led rally,” said James Soutter, a fund manager at K2 Asset Management in Melbourne.
Other than financials, there have also been good results from the large oil companies in China and a Chinese property rally, he said.
The Shanghai Composite Index rose 1.8 percent.
In Japan, the TOPIX rose 0.3 percent, buoyed by Toyota Motor Corp as the yen weakened against the US dollar, and the Nikkei 225 added 0.5 percent.
Indian markets were closed for a holiday.
South Korea’s KOSPI inched up 0.1 and the KOSPI 200 rose 0.2 percent.
Australia’s S&P/ASX 200 Index was little changed, while New Zealand’s NZX 50 slipped 0.1 percent.
Singapore’s Straits Times Index lost 0.4 percent and FTSE Bursa Malaysia KLCI fell 0.5 percent.
The Jakarta Composite Index added 0.3 percent and Vietnam’s VN Index rose 0.2 percent while Thailand’s SET Index was little changed.
Additional reporting by CNA
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