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-LIMITS PARTNERSHIP: ‘The bottom line’ is that if the US were to have a conflict with China or Russia it would likely open up a second front with the other, a US senator said Beijing and Moscow could cooperate in a conflict over Taiwan, the top US intelligence chief told the US Senate this week. “We see China and Russia, for the first time, exercising together in relation to Taiwan and recognizing that this is a place where China definitely wants Russia to be working with them, and we see no reason why they wouldn’t,” US Director of National Intelligence Avril Haines told a US Senate Committee on Armed Services hearing on Thursday. US Senator Mike Rounds asked Haines about such a potential scenario. He also asked US Defense Intelligence Agency Director Lieutenant General Jeffrey Kruse
China’s intrusive and territorial claims in the Indo-Pacific region are “illegal, coercive, aggressive and deceptive,” new US Indo-Pacific Commander Admiral Samuel Paparo said on Friday, adding that he would continue working with allies and partners to keep the area free and open. Paparo made the remarks at a change-of-command ceremony at Joint Base Pearl Harbor-Hickam in Hawaii, where he took over the command from Admiral John Aquilino. “Our world faces a complex problem set in the troubling actions of the People’s Republic of China [PRC] and its rapid buildup of forces. We must be ready to answer the PRC’s increasingly intrusive and
INSPIRING: Taiwan has been a model in the Asia-Pacific region with its democratic transition, free and fair elections and open society, the vice president-elect said Taiwan can play a leadership role in the Asia-Pacific region, vice president-elect Hsiao Bi-khim (蕭美琴) told a forum in Taipei yesterday, highlighting the nation’s resilience in the face of geopolitical challenges. “Not only can Taiwan help, but Taiwan can lead ... not only can Taiwan play a leadership role, but Taiwan’s leadership is important to the world,” Hsiao told the annual forum hosted by the Center for Asia-Pacific Resilience and Innovation think tank. Hsiao thanked Taiwan’s international friends for their long-term support, citing the example of US President Joe Biden last month signing into law a bill to provide aid to Taiwan,
UNWAVERING: Paraguay remains steadfast in its support of Taiwan, but is facing growing pressure at home and abroad to switch recognition to Beijing, Pena said Paraguayan President Santiago Pena has pledged to continue enhancing cooperation with Taiwan, as he and Japanese Prime Minister Fumio Kishida expressed opposition to any unilateral change to the “status quo” in the Taiwan Strait using force, Japanese media reported on Saturday. Kishida yesterday completed a trip to France, Brazil and Paraguay, his first visit to South America since taking office in 2021. After the Japanese leader and Pena spoke for more than an hour on Friday, exchanging views on the situation in East Asia in the face of China’s increasing military pressure on Taiwan, they affirmed that “unilateral attempts to change the