Asian shares gained on Friday after the US Senate approved a budget blueprint for the 2018 fiscal year that will pave the way for Republicans to pursue a tax-cut package without Democratic support.
MSCI’s broadest index of Asia-Pacific shares outside Japan, which scaled a 10-year peak on Tuesday, rose 0.3 percent, but was still down slightly for the week.
The weighted index on the Taiwan Stock Exchange on Friday ended down 31.41 points, or 0.29 percent, at 10,728.88. The index is up 0.04 percent from last week’s 10,724.09.
Japan’s Nikkei on Friday erased its earlier losses and eked out a 0.04 percent gain, and a robust weekly rise of 1.4 percent. The Nikkei logged its 14th gaining session, its longest such streak since 1961.
Shares in New Zealand notched their 14th straight rising session and fifth winning week to close at a record after the nationalist New Zealand First Party agreed to form a new government with the center-left Labour Party.
Japan’s TOPIX ended virtually flat in Tokyo though at the highest since July 2007 and was up for a sixth consecutive week.
Australia’s S&P/ASX 200 Index rose 0.2 percent and South Korea’s KOSPI gained 0.7 percent.
The Hang Seng Index rose 1.2 percent, to 28,487.24 points, recovering much of Thursday’s 1.9 percent decline and ending the week roughly flat.
The Hong Kong China Enterprises Index jumped 1.8 percent, to 11,558.35 points, up 0.3 percent for the week.
The benchmark Hang Seng index fell the most in two months on Thursday, as investors were spooked by People’s Bank of China Governor Zhou Xiaochuan’s (周小川) comments that risks from excessive optimism could lead to a “Minsky Moment.”
A Minsky Moment, named after economist Hyman Minsky, is a sudden collapse of asset prices that follows a long period of growth, sparked by debt or currency pressures.
“The rebound shows the market was wrong yesterday,” Robert Di, founding partner of asset manger RPower Capital said.
He added there had been some misreading of Zhou’s remarks, which he said were used as an excuse by some investors to take profit following Hang Seng’s nearly 30 percent surge this year.
“What Zhou said was an assumption, a scenario,” Di said, adding that the market had interpreted it more as a present reality.
Zhou on Thursday said that he is likely to retire soon, confirming an earlier Reuters report.
Additional reporting by CNA and Bloomberg
Polytronics Technology Corp (聚鼎科技) yesterday announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance. Polytronics, headquartered in the Hsinchu Science Park (新竹科學園區), is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process. Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US. The purchase includes all assets and business interests, including equipment,
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
‘SENSITIVE MARKETS’: The previously unannounced project would involve the company handing over control of data to a third party to sidestep privacy concerns Google has abandoned plans to offer a major new cloud service in China and other politically sensitive countries due in part to concerns over geopolitical tensions and the COVID-19 pandemic, two employees familiar with the matter said, revealing the challenges for US tech giants to secure business in those markets. In May, the search giant shut down the initiative, known as “Isolated Region” and which sought to address nations’ desires to control data within their borders, the employees said. The action was considered a “massive strategy shift,” said one of the employees, who added that Isolated Region had involved hundreds of employees