Sun, Sep 08, 2019 - Page 14 News List

Asian shares rise on hope of more US-China talks

TAIWAN REACTION:The electronics and financial sectors anchored the broader market on Friday, as the TAIEX closed up 0.22 percent at 10,780.64

Staff writer with CNA and AP

Asian shares rose on Friday as investors cheered plans for more trade negotiations between Washington and Beijing and drew encouragement from positive US economic data.

Hong Kong’s Hang Seng rose 0.3 percent to 26,599.48, posting its best week since June and gaining 3.4 percent from 25,724.73 a week earlier.

Japan’s benchmark Nikkei 225 gained 0.5 percent to reach 21,189.48, up 2.34 percent from 20,704.37 on Aug. 30, while South Korea’s KOSPI edged up 0.2 percent to 2,008.28, an increase of 2.06 percent from 1,967.79 on Aug. 30.

The Shanghai Composite inched up nearly 0.1 percent to 2,988.52, an increase of 3.54 percent from 2,886.24 a week earlier.

“Indeed it is a positive sign that meetings will take place at multiple levels,” said Zhu Huani, an economist from the Asia & Oceania Treasury Department of Mizuho Bank, referring to the talks between the US and China.

“As limited progress is expected, there will still be many twists and turns along the way and [the] hurdle for more good news is substantially higher,” she said. “Therefore, we think the rally could be short-lived without more breakthroughs.”

TAIWAN TRADE

Shares in Taiwan also closed higher on Friday, with the bellwether electronics sector, as well as the financial sector, serving as anchors to stabilize the broader market, while old-economy stocks appeared mixed throughout the session, dealers said.

The weighted index on the Taiwan Stock Exchange, the TAIEX, closed up 23.71 points, or 0.22 percent, at 10,780.64, after moving between 10,753,45 and 10,803,07, on turnover of NT$130.18 billion (US$4.16 billion). It rose 1.53 percent from last week’s 10,618.05.

The market opened up 0.25 percent on follow-through buying from a session earlier, when the TAIEX closed up 0.93 percent, and buying continued in the wake of a strong showing in US markets.

Buying in select large-cap tech stocks, as well as certain financial stocks, helped the broader market to breach 10,800 points on the local main board at one point before some investors moved to the sell side, which limited the upturn by the end of the session, dealers said.

“Yesterday, Taipei and other regional markets reacted favorably to the positive leads from the agreement to resume trade talks between the US and China ahead of Wall Street’s rally,” Hua Nan Securities Investment Management Co (華南投顧) analyst Kevin Su (蘇俊宏) said. “So today [Friday], the local equity market was calm, with some profit-taking capping the gains.”

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the most heavily weighted stock in the local market, rose 0.19 percent to close at NT$263.50, after hitting an early high of NT$265.00, with 25.36 million shares changing hands.

Buying in TSMC spread to other semiconductor stocks, with integrated circuit designer MediaTek Inc (聯發科) up 1.90 percent to end at NT$374.50 amid optimism regarding its efforts in 5G technology development.

Meanwhile, DRAM chipmaker Nanya Technology Corp’s (南亞科技) shares rose 0.26 percent to close at NT$77.10 and rival Winbond Electronics Inc (華邦電) gained 1.67 percent to end at NT$18.30.

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