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.
NO HUMAN ERROR: After the incident, the Coast Guard Administration said it would obtain uncrewed aerial vehicles and vessels to boost its detection capacity Authorities would improve border control to prevent unlawful entry into Taiwan’s waters and safeguard national security, the Mainland Affairs Council (MAC) said yesterday after a Chinese man reached the nation’s coast on an inflatable boat, saying he “defected to freedom.” The man was found on a rubber boat when he was about to set foot on Taiwan at the estuary of Houkeng River (後坑溪) near Taiping Borough (太平) in New Taipei City’s Linkou District (林口), authorities said. The Coast Guard Administration’s (CGA) northern branch said it received a report at 6:30am yesterday morning from the New Taipei City Fire Department about a
IN BEIJING’S FAVOR: A China Coast Guard spokesperson said that the Chinese maritime police would continue to carry out law enforcement activities in waters it claims The Philippines withdrew its coast guard vessel from a South China Sea shoal that has recently been at the center of tensions with Beijing. BRP Teresa Magbanua “was compelled to return to port” from Sabina Shoal (Xianbin Shoal, 仙濱暗沙) due to bad weather, depleted supplies and the need to evacuate personnel requiring medical care, the Philippine Coast Guard (PCG) spokesman Jay Tarriela said yesterday in a post on X. The Philippine vessel “will be in tiptop shape to resume her mission” after it has been resupplied and repaired, Philippine Executive Secretary Lucas Bersamin, who heads the nation’s maritime council, said
REGIONAL STABILITY: Taipei thanked the Biden administration for authorizing its 16th sale of military goods and services to uphold Taiwan’s defense and safety The US Department of State has approved the sale of US$228 million of military goods and services to Taiwan, the US Department of Defense said on Monday. The state department “made a determination approving a possible Foreign Military Sale” to the Taipei Economic and Cultural Representative Office in the US for “return, repair and reshipment of spare parts and related equipment,” the defense department’s Defense Security Cooperation Agency said in a news release. Taiwan had requested the purchase of items and services which include the “return, repair and reshipment of classified and unclassified spare parts for aircraft and related equipment; US Government
More than 500 people on Saturday marched in New York in support of Taiwan’s entry to the UN, significantly more people than previous years. The march, coinciding with the ongoing 79th session of the UN General Assembly, comes close on the heels of growing international discourse regarding the meaning of UN Resolution 2758. Resolution 2758, adopted by the UN General Assembly in 1971, recognizes the People’s Republic of China (PRC) as the “only lawful representative of China.” It resulted in the Republic of China (ROC) losing its seat at the UN to the PRC. Taiwan has since been excluded from