Asian stocks rose for the first time in five weeks as Japan and China signaled more measures to buttress their economies from the deepening global recession.
PetroChina Co, the nation’s largest oil producer, climbed 12 percent in Hong Kong after crude oil surged and Chinese Premier Wen Jiabao (溫家寶) said China could boost spending plans any time. Mitsubishi UFJ Financial Group Inc, Japan’s biggest bank, gained 4.5 percent in Tokyo after Japanese Prime Minister Taro Aso ordered more economic stimulus measures. Commonwealth Bank of Australia jumped 12 percent, pacing gains among financial companies, as three US banks said earnings were improving.
“Markets can take comfort that countries with the ability to do so are providing fiscal stimulus, rather than waiting till it’s too difficult to fight the momentum,” said Tim Schroeders, who helps manage about US$2.6 billion at Pengana Capital Ltd in Melbourne. “We’re seeing some money parked in safe havens returning to the market.”
The MSCI Asia-Pacific Index rose 3.9 percent to 74.72 this week, snapping a four-week, 14 percent decline. Japan’s Nikkei 225 Stock Average climbed 5.5 percent to 7,569.28, while Hong Kong’s Hang Seng Index rose 5.1 percent.
Chartered Semiconductor Manufacturing Ltd, the world’s third-biggest maker of customized chips, plunged 48 percent after announcing a US$300 million rights offering. Elpida Memory Inc, Japan’s biggest memory-chip maker, slumped 23 percent after a merger with Taiwanese rivals failed to materialize.
Taiwanese share prices are expected to extend gains next week as more foreign institutional investors return, dealers said.
A stronger New Taiwan dollar against the greenback is likely to prompt foreign investors to buy, they said.
Electronic stocks may continue momentum as investors have embraced high hopes that profitability will improve. The financial sector is also likely to gain.
For the week to Friday, the market rose 243.76 points or 5.24 percent to 4,897.39. Average daily turnover stood at NT$97.19 billion (US$2.82 billion), compared with NT$84.39 billion a week ago.
Since the beginning of last month, the bourse has gained almost 15 percent.
Mega Securities (兆豐證券) analyst Alex Huang (黃國偉) said investors should watch how General Motors resolves its financial difficulties.
“If negative news emerges related to GM, Wall Street may pull back and hurt its foreign counterparts, including Taiwan,” Huang said.
Other markets on Friday:
KUALA LUMPUR: Up 0.6 percent. The Kuala Lumpur Composite Index rose 5.06 points to 843.45.
JAKARTA: Up 1.3 percent. The Jakarta Composite Index rose 17.02 points to 1,327.43.
MANILA: Down 1.2 percent. The composite index lost 23.57 points to 1,856.10.
WELLINGTON: Up 1.28 percent. The benchmark NZX-50 index rose 31.77 points to 2,523.39.
MUMBAI: Up 4.95 percent. The SENSEX rose 412.86 points to 8,756.61. The 30-share index achieved its second straight day of gains on Wall Street’s positive performance.
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