Asian stocks fell this week, the third weekly decline in four, as concern the global recovery will falter caused commodity prices to drop and the yen to strengthen.
BHP Billiton Ltd, the world’s biggest mining company, dropped for a fifth week after copper and oil prices slumped. Honda Motor Co, which makes 51 percent of its revenue in North America, tumbled 10 percent on concern a stronger yen will hurt the value of its overseas revenue. STX Pan Ocean Co Ltd, South Korea’s biggest bulk carrier, sank 11 percent as shipping rates declined.
The MSCI Asia-Pacific Index lost 2.1 percent in the five days to Friday, adding to last week’s 0.8 percent decline. That pared the measure’s record 28 percent in the three months ended June 30 on optimism the global economy is stabilizing.
“The market is finally returning its focus to the present, rather than looking for an eventual recovery,” said Masaru Hamasaki, a Tokyo-based strategist at Toyota Asset Management Co, which oversees US$14 billion. “The economic rebound won’t be rapid. Share prices are beginning to reflect that.”
The Asian stock benchmark, which plunged by a record last year as the global economy slipped into recession, has now climbed 43 percent since reaching a more than five-year low on March 9. Stocks on the gauge now trade at 22.8 times reported earnings, compared with 15 times at the market trough in March and 14.9 for the US’ Standard & Poor’s 500 Index.
Taiwanese share prices are expected to consolidate next week as investors remain sidelined, looking for cues from the quarterly results of firms on Wall Street, dealers said on Friday.
Investors turned hesitant after a mixed performance dominated US markets, which failed to give a clear indication for future movements, they said.
Falling oil prices have prompted investors to take a cautious attitude toward a global economic recovery as demand remains weak, they added.
As a recent strong showing has pushed the index to move closer to the 6,800-6,900 range, stiff resistance may emerge next week, while technical support is expected at around 6,600 points, dealers said.
For the week to Friday, the TAIEX rose 104.46 points or 1.57 percent to 6,769.86 after a 3.12 percent increase a week earlier.
Average daily turnover stood at NT$119.37 billion (US$3.62 billion), compared with NT$107.42 billion the previous week.
“Institutional investors have started to take profit and run. If the market tests the 6,800-6,900 range, it could be another good chance for institutional investors to cut more holdings,” Concord Securities (康和證券) analyst Allen Lin said.
Before US stock heavyweights report second-quarter earnings later this month, investors are reluctant to trade on a lack of fresh hints, Lin said.
“I expect the market will be locked in see-saw trading with any gains to be immediately offset by profit-taking,” Lin said.
Other markets on Friday:
TOKYO: Flat. The Nikkei-225 dropped 3.78 points, or 0.04 percent, to 9,287.28 from Thursday.
HONG KONG: Down 0.46 percent. The Hang Seng Index ended down 82.17 points at 17,708.42.
SYDNEY: Up 0.82 percent. The S&P/ASX 200 was 30.8 points higher at 3,794.1.
SHANGHAI: Down 0.29 percent. The Shanghai Composite Index, which covers A and B shares, was down 9.10 points to 3,113.93.
SEOUL: Down 0.15 percent. The KOSPI lost 2.27 points to 1,428.62.
MUMBAI: Down 1.84 percent. The 30-share SENSEX fell 253.24 points to 13,504.22. Investors unwound positions ahead of the weekend, despite better-than-expected earnings from IT giant Infosys and higher industrial output, dealers said.
LONG FLIGHT: The jets would be flown by US pilots, with Taiwanese copilots in the two-seat F-16D variant to help familiarize them with the aircraft, the source said The US is expected to fly 10 Lockheed Martin F-16C/D Block 70/72 jets to Taiwan over the coming months to fulfill a long-awaited order of 66 aircraft, a defense official said yesterday. Word that the first batch of the jets would be delivered soon was welcome news to Taiwan, which has become concerned about delays in the delivery of US arms amid rising military tensions with China. Speaking on condition of anonymity, the official said the initial tranche of the nation’s F-16s are rolling off assembly lines in the US and would be flown under their own power to Taiwan by way
OBJECTS AT SEA: Satellites with synthetic-aperture radar could aid in the detection of small Chinese boats attempting to illegally enter Taiwan, the space agency head said Taiwan aims to send the nation’s first low Earth orbit (LEO) satellite into space in 2027, while the first Formosat-8 and Formosat-9 spacecraft are to be launched in October and 2028 respectively, the National Science and Technology Council said yesterday. The council laid out its space development plan in a report reviewed by members of the legislature’s Education and Culture Committee. Six LEO satellites would be produced in the initial phase, with the first one, the B5G-1A, scheduled to be launched in 2027, the council said in the report. Regarding the second satellite, the B5G-1B, the government plans to work with private contractors
MISSION: The Indo-Pacific region is ‘the priority theater,’ where the task of deterrence extends across the entire region, including Taiwan, the US Pacific Fleet commander said The US Navy’s “mission of deterrence” in the Indo-Pacific theater applies to Taiwan, Pacific Fleet Commander Admiral Stephen Koehler told the South China Sea Conference on Tuesday. The conference, organized by the Center for Strategic and International Studies (CSIS), is an international platform for senior officials and experts from countries with security interests in the region. “The Pacific Fleet’s mission is to deter aggression across the Western Pacific, together with our allies and partners, and to prevail in combat if necessary, Koehler said in the event’s keynote speech. “That mission of deterrence applies regionwide — including the South China Sea and Taiwan,” he
‘NARWHAL’: The indigenous submarine completed its harbor acceptance test recently and is now under heavy guard as it undergoes tests in open waters, a source said The Hai Kun (海鯤), the nation’s first indigenous defense submarine, yesterday began sea trials, sailing out of the Port of Kaohsiung, a military source said. Also known as the “Narwhal,” the vessel departed from CSBC Corp, Taiwan’s (台灣國際造船) shipyard at about 8am, where it had been docked. More than 10 technicians and military personnel were on deck, with several others standing atop the sail. After recently completing its harbor acceptance test, the vessel has started a series of sea-based trials, including tests of its propulsion and navigational systems, while partially surfaced, the source said. The Hai Kun underwent tests in the port from
RSS