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.
Authorities have detained three former Taiwan Semiconductor Manufacturing Co (TMSC, 台積電) employees on suspicion of compromising classified technology used in making 2-nanometer chips, the Taiwan High Prosecutors’ Office said yesterday. Prosecutors are holding a former TSMC engineer surnamed Chen (陳) and two recently sacked TSMC engineers, including one person surnamed Wu (吳) in detention with restricted communication, following an investigation launched on July 25, a statement said. The announcement came a day after Nikkei Asia reported on the technology theft in an exclusive story, saying TSMC had fired two workers for contravening data rules on advanced chipmaking technology. Two-nanometer wafers are the most
NEW GEAR: On top of the new Tien Kung IV air defense missiles, the military is expected to place orders for a new combat vehicle next year for delivery in 2028 Mass production of Tien Kung IV (Sky Bow IV) missiles is expected to start next year, with plans to order 122 pods, the Ministry of National Defense’s (MND) latest list of regulated military material showed. The document said that the armed forces would obtain 46 pods of the air defense missiles next year and 76 pods the year after that. The Tien Kung IV is designed to intercept cruise missiles and ballistic missiles to an altitude of 70km, compared with the 60km maximum altitude achieved by the Missile Segment Enhancement variant of PAC-3 systems. A defense source said yesterday that the number of
A bipartisan group of US representatives have introduced a draft US-Taiwan Defense Innovation Partnership bill, aimed at accelerating defense technology collaboration between Taiwan and the US in response to ongoing aggression by the Chinese Communist Party (CCP). The bill was introduced by US representatives Zach Nunn and Jill Tokuda, with US House Select Committee on the Chinese Communist Party Chairman John Moolenaar and US Representative Ashley Hinson joining as original cosponsors, a news release issued by Tokuda’s office on Thursday said. The draft bill “directs the US Department of Defense to work directly with Taiwan’s Ministry of National Defense through their respective
Tsunami waves were possible in three areas of Kamchatka in Russia’s Far East, the Russian Ministry for Emergency Services said yesterday after a magnitude 7.0 earthquake hit the nearby Kuril Islands. “The expected wave heights are low, but you must still move away from the shore,” the ministry said on the Telegram messaging app, after the latest seismic activity in the area. However, the Pacific Tsunami Warning System in Hawaii said there was no tsunami warning after the quake. The Russian tsunami alert was later canceled. Overnight, the Krasheninnikov volcano in Kamchatka erupted for the first time in 600 years, Russia’s RIA
RSS