Asian stocks rose for a fourth week in five, driving the MSCI Asia-Pacific Index to the highest level in eight months, as US consumer confidence and Japanese production reports spurred hopes for a global economic recovery.
Toyota Motor Corp, which gets 31 percent of its revenue in North America, gained 6.7 percent in Tokyo. PetroChina Co, the nation’s biggest oil producer, advanced 6 percent as crude oil prices surged for a second week. Hang Lung Properties Ltd, Hong Kong’s fifth-biggest builder, surged 16 percent after Hong Kong’s government announced an additional stimulus package.
“Signs of a turnaround are coming through,” said Matt Riordan, who helps manage about US$3.1 billion at Paradice Investment Management in Sydney. “People who were initially dismissing this as a bear-market rally are concerned it might be sustainable.”
.jpg)
The MSCI Asia-Pacific Index gained 2.7 percent to 102.04, its highest level since Oct. 3. The gauge, which has rallied 45 percent from a five-year low on March 9, briefly pared gains this week after North Korea threatened a military strike in response to South Korea joining a program to seize weapons shipments.
South Korea’s KOSPI Index sank 0.6 percent as North Korea tested a nuclear device on May 25 and launched six short-range missiles in defiance of international condemnation.
“The North Korean missile test is providing investors a reality check,” said Roger Groebli, Singapore-based head of market analysis at LGT Capital Management, which oversees about US$20 billion. “Valuations in Asia are a little rich.”
Taiwanese share prices are expected to challenge the key 7,000-point level next week on continued inflows of foreign funds, dealers said.
Foreign institutional investors are likely to pick up financial heavyweights as their holdings remain relatively low and they need further short covering, they said.
However, as the bellwether electronic sector is scheduled to report sales data for this month, cautious sentiment toward high-tech stocks may cast a shadow over the broader market, the dealers added.
While the ample liquidity is expected to push the index through 7,000 or even higher next week, stiff technical resistance is likely to follow and drag it to around 6,600, they said.
In the holiday-shortened week to Wednesday, the weighted index rose 153.15 points, or 2.27 percent, to 6,890.44 after a 3.82 percent increase a week earlier.
Average daily turnover stood at NT$204.64 billion (US$6.28 billion), compared with NT$189.36 billion a week ago.
The market was closed on Thursday and Friday for the prolonged Dragon Boat Festival holiday.
Other regional markets on Friday:
HONG KONG: Up 1.60 percent. The Hang Seng Index rose 285.73 points at 18,171.00, its highest close since early October. Dealers said profit-taking pressure was strong as the local benchmark index has risen 17 percent since the start of May.
SYDNEY: Up 1.7 percent. The S&P/ASX 200 rose 62.2 points to 3,817.9. The market was “remarkably strong” and buoyed by gains in Commonwealth Bank, ANZ and Westpac after a positive lead from Wall Street, Ord Minnett private client adviser Jon Hancock said.
SEOUL: UP 0.27 percent. The KOSPI ended up 3.72 points at 1,395.89. Foreign buying outweighed concerns over instability on the Korean peninsula.
KUALA LUMPUR: Up 0.28 percent. The Kuala Lumpur Composite Index added 2.87 points at 1,044.11.
MANILA: Up 1.48 percent. The composite index rose 34.94 points to 2,389.31.
MUMBAI: Up 2.3 percent. The 30-share SENSEX rose 329.24 points to 14,625.25, a near nine-month high. Sentiment was lifted after the government said the economy grew by a better-than-expected 6.7 percent in the past fiscal year, dealers said.
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
RSS