Asian stocks advanced for a second week, sending the MSCI Asia-Pacific Index to its biggest gain since May on speculation a recovery in the global economy will boost corporate earnings.
James Hardie Industries NV, the biggest seller of home siding in the US, surged 24 percent in Sydney after reports showed US homes prices climbed. Chartered Semiconductor Manufacturing Ltd (特許)the world’s third-largest maker of customized chips, gained 6.7 percent in Singapore after reporting a lower-than-forecast loss in the second quarter. Jiangxi Copper Co (江西銅業), China’s largest producer of the metal, advanced 16 percent in Shanghai after copper prices advanced.
“The data is showing that things are past their worst,” said Tim Schroeders, who helps manage US$1 billion at Pengana Capital Ltd in Melbourne. “If we’ve seen a bottom, and things continue to improve in the second half, it just may be enough to buoy earnings.”
The MSCI Asia-Pacific Index climbed 4.5 percent to 108.00 this week, the biggest advance since the period ended May 8. The gauge has rallied 53 percent from a five-year low on March 9 amid optimism stimulus policies around the world will revive the global economy. The MSCI World Index gained 4.6 percent this week.
The MSCI Asia-Pacific Index has risen this week as US companies including Apple Inc reported better-than-expected results. South Korea said on Friday economic growth accelerated in the second quarter, while US data released on Thursday showed sales of existing homes rose 3.6 percent last month.
The data provided further evidence that the global economic recovery is on track. Last week, China and Singapore also reported economic growth accelerated in the second quarter.
Taiwanese shares are expected to move around the 7,000-point level in the week ahead, which will provide stiff resistance after recent significant gains, dealers said.
As the market repeatedly failed to leap the psychological hurdle this week, many investors have turned cautious in the near term, they said. Even if the market does pass 7,000, profit-taking is expected to immediately follow, while technical support may be seen at around 6,800.
With electronics firms, including Taiwan Semiconductor Manufacturing Co (台積電) reporting second-quarter results next week, the market is likely to be quiet before fresh hints on industrial fundamentals, they added.
For the week to July 24, the weighted index rose 122.29 points, or 1.78 percent, to 6,973.28 after a 1.2 percent increase a week earlier.
Average daily turnover stood at NT$143.43 billion (US$4.37 billion), compared with NT$128.01 billion a week ago.
“The market is running out of steam after a recent strong showing. Consolidation is expected to dictate market movements over the next few sessions,” Taiwan International Securities (金鼎證券) analyst Arch Shih (施博元) said.
Other markets on Friday:
TOKYO: Up 1.55 percent. The Nikkei-225 climbed 151.61 points to 9,944.55. The index is at its highest in more than three weeks. Investors stopped short of pushing the Nikkei past 10,000 as concerns emerged that Wall Street may see profit-taking.
HONG KONG: Up 0.83 percent. The Hang Seng Index closed up 165.09 points at 19,982.79. The market had briefly gone as high as 20,063.39 soon after the opening due to hopes for the US economy.
SYDNEY: Up 0.63 percent. The S&P/ASX 200 added 25.7 points to reach 4,089.8.
SHANGHAI: Up 1.33 percent. The Shanghai Composite Index, which covers A and B shares, was up 44.11 points to 3,372.60. The key index ended at the highest level since June 3 last year.
MUMBAI: Up 0.97 percent. The 30-share SENSEX rose 147.92 points to 15,378.96.
MORE VISITORS: The Tourism Administration said that it is seeing positive prospects in its efforts to expand the tourism market in North America and Europe Taiwan has been ranked as the cheapest place in the world to travel to this year, based on a list recommended by NerdWallet. The San Francisco-based personal finance company said that Taiwan topped the list of 16 nations it chose for budget travelers because US tourists do not need visas and travelers can easily have a good meal for less than US$10. A bus ride in Taipei costs just under US$0.50, while subway rides start at US$0.60, the firm said, adding that public transportation in Taiwan is easy to navigate. The firm also called Taiwan a “food lover’s paradise,” citing inexpensive breakfast stalls
TRADE: A mandatory declaration of origin for manufactured goods bound for the US is to take effect on May 7 to block China from exploiting Taiwan’s trade channels All products manufactured in Taiwan and exported to the US must include a signed declaration of origin starting on May 7, the Bureau of Foreign Trade announced yesterday. US President Donald Trump on April 2 imposed a 32 percent tariff on imports from Taiwan, but one week later announced a 90-day pause on its implementation. However, a universal 10 percent tariff was immediately applied to most imports from around the world. On April 12, the Trump administration further exempted computers, smartphones and semiconductors from the new tariffs. In response, President William Lai’s (賴清德) administration has introduced a series of countermeasures to support affected
CROSS-STRAIT: The vast majority of Taiwanese support maintaining the ‘status quo,’ while concern is rising about Beijing’s influence operations More than eight out of 10 Taiwanese reject Beijing’s “one country, two systems” framework for cross-strait relations, according to a survey released by the Mainland Affairs Council (MAC) on Thursday. The MAC’s latest quarterly survey found that 84.4 percent of respondents opposed Beijing’s “one country, two systems” formula for handling cross-strait relations — a figure consistent with past polling. Over the past three years, opposition to the framework has remained high, ranging from a low of 83.6 percent in April 2023 to a peak of 89.6 percent in April last year. In the most recent poll, 82.5 percent also rejected China’s
PLUGGING HOLES: The amendments would bring the legislation in line with systems found in other countries such as Japan and the US, Legislator Chen Kuan-ting said Democratic Progressive Party (DPP) Legislator Chen Kuan-ting (陳冠廷) has proposed amending national security legislation amid a spate of espionage cases. Potential gaps in security vetting procedures for personnel with access to sensitive information prompted him to propose the amendments, which would introduce changes to Article 14 of the Classified National Security Information Protection Act (國家機密保護法), Chen said yesterday. The proposal, which aims to enhance interagency vetting procedures and reduce the risk of classified information leaks, would establish a comprehensive security clearance system in Taiwan, he said. The amendment would require character and loyalty checks for civil servants and intelligence personnel prior to
RSS