Asian stocks climbed for a third straight week as a China purchasing manager’s index and better-than-expected Australia’s GDP figures spurred optimism the global economy is recovering.
Rio Tinto Ltd, the world’s third-biggest mining company, surged 12 percent after saying it would sell shares and form a joint venture with BHP Billiton Ltd instead of pursuing an investment from Aluminum Corp of China (Chinalco, 中國鋁業). BHP, the world’s biggest mining company, climbed 10 percent. CNOOC Ltd (中國海洋石油), China’s biggest offshore oil producer, rallied as oil prices rose.
“Positive economic numbers, particularly from China, should provide a further leg up for this rally,” said Khiem Do, head of multi-asset strategy at Baring Asset Management (Asia) Ltd in Hong Kong, which oversees US$7 billion. “Risk appetite is coming back with a vengeance.”
The MSCI Asia-Pacific Index advanced 1.3 percent to 103.33 in Tokyo. The gauge, which has surged 47 percent since falling to a more than five-year low on March 9, briefly pared gains after Yonhap News reported on Tuesday that North Korea was preparing to launch a medium-range missile.
South Korea’s KOSPI index fell 0.1 percent, dropping for a second week as concerns North Korea will step up military tests outweighed signs the global recession is abating.
Mining and energy companies are the best performers of the MSCI Asia-Pacific Index’s 10 industry groups in the past month as prospects of a global recovery fueled optimism that demand for commodities will increase.
Taiwanese share prices are expected to move in a narrow range next week amid cautious sentiment toward electronic heavyweights’ sales from last month, dealers said on Friday.
For the week to Friday, the weighted index lost 123.34 points, or 1.79 percent, to 6,767.10 after a 2.27 percent increase a week earlier.
The TAIEX yesterday rose 89.64 points, or 1.32 percent, to 6,856.74 from Friday’s close on turnover of NT$94.34 billion. The local stock market opened yesterday to compensate for a holiday last week.
Since the beginning of March, the local bourse has risen more than 27 percent on optimism about closer business ties with China.
Japanese shares will likely remain rangebound in the coming week as investors search for fresh leads amid hesitant trade, analysts said on Friday.
Over the week to Friday, the benchmark Nikkei-225 index gained 245.51 points, or 2.58 percent, to 9,768.01, following rallies on Wall Street. The broader TOPIX index of all first section shares gained 18.65 points, or 2.08 percent, to 916.56.
Other markets on Friday:
HONG KONG: Up 0.96 percent. The Hang Seng Index closed up 176.76 points at 18,679.53. A late surge provided some direction to a lackluster market, dealers said.
SHANGHAI: Down 0.48 percent. The Shanghai Composite Index, which covers A and B shares, was down 13.35 points to 2,753.89. The market was hit by renewed concerns over a possible resumption of initial public offerings later in the month, dealers said.
SEOUL: Up 1.2 percent. The KOSPI gained 16.57 points to 1,394.71, helped by gains in financial and technology stocks.
MUMBAI: Up 0.63 percent. The benchmark 30-share SENSEX rose 94.87 points to 15,103.55, a more than nine-month high.
NEXT GENERATION: The four plants in the Central Taiwan Science Park, designated Fab 25, would consist of four 1.4-nanometer wafer manufacturing plants, TSMC said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) plans to begin construction of four new plants later this year, with the aim to officially launch production of 2-nanometer semiconductor wafers by late 2028, Central Taiwan Science Park Bureau director-general Hsu Maw-shin (許茂新) said. Hsu made the announcement at an event on Friday evening celebrating the Central Taiwan Science Park’s 22nd anniversary. The second phase of the park’s expansion would commence with the initial construction of water detention ponds and other structures aimed at soil and water conservation, Hsu said. TSMC has officially leased the land, with the Central Taiwan Science Park having handed over the
AUKUS: The Australian Ambassador to the US said his country is working with the Pentagon and he is confident that submarine issues will be resolved Australian Ambassador to the US Kevin Rudd on Friday said that if Taiwan were to fall to China’s occupation, it would unleash China’s military capacities and capabilities more broadly. He also said his country is working with the Pentagon on the US Department of Defense’s review of the AUKUS submarine project and is confident that all issues raised will be resolved. Rudd, who served as Australian prime minister from 2007 to 2010 and for three months in 2013, made the remarks at the Aspen Security Forum in Colorado and stressed the longstanding US-Australia alliance and his close relationship with the US Undersecretary
‘WORLD WAR III’: Republican Representative Marjorie Taylor Greene said the aid would inflame tensions, but her amendment was rejected 421 votes against six The US House of Representatives on Friday passed the Department of Defense Appropriations Act for fiscal 2026, which includes US$500 million for Taiwan. The bill, which totals US$831.5 billion in discretionary spending, passed in a 221-209 vote. According to the bill, the funds for Taiwan would be administered by the US Defense Security Cooperation Agency and would remain available through Sept. 30, 2027, for the Taiwan Security Cooperation Initiative. The legislation authorizes the US Secretary of Defense, with the agreement of the US Secretary of State, to use the funds to assist Taiwan in procuring defense articles and services, and military training. Republican Representative
TAIWAN IS TAIWAN: US Representative Tom Tiffany said the amendment was not controversial, as ‘Taiwan is not — nor has it ever been — part of Communist China’ The US House of Representatives on Friday passed an amendment banning the US Department of Defense from creating, buying or displaying any map that shows Taiwan as part of the People’s Republic of China (PRC). The “Honest Maps” amendment was approved in a voice vote on Friday as part of the Department of Defense Appropriations Act for the 2026 fiscal year. The amendment prohibits using any funds from the act to create, buy or display maps that show Taiwan, Kinmen, Matsu, Penghu, Wuciou (烏坵), Green Island (綠島) or Orchid Island (Lanyu, 蘭嶼) as part of the PRC. The act includes US$831.5 billion in
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