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.
ROLLER-COASTER RIDE: More than five earthquakes ranging from magnitude 4.4 to 5.5 on the Richter scale shook eastern Taiwan in rapid succession yesterday afternoon Back-to-back weather fronts are forecast to hit Taiwan this week, resulting in rain across the nation in the coming days, the Central Weather Administration said yesterday, as it also warned residents in mountainous regions to be wary of landslides and rockfalls. As the first front approached, sporadic rainfall began in central and northern parts of Taiwan yesterday, the agency said, adding that rain is forecast to intensify in those regions today, while brief showers would also affect other parts of the nation. A second weather system is forecast to arrive on Thursday, bringing additional rain to the whole nation until Sunday, it
LANDSLIDES POSSIBLE: The agency advised the public to avoid visiting mountainous regions due to more expected aftershocks and rainfall from a series of weather fronts A series of earthquakes over the past few days were likely aftershocks of the April 3 earthquake in Hualien County, with further aftershocks to be expected for up to a year, the Central Weather Administration (CWA) said yesterday. Based on the nation’s experience after the quake on Sept. 21, 1999, more aftershocks are possible over the next six months to a year, the agency said. A total of 103 earthquakes of magnitude 4 on the local magnitude scale or higher hit Hualien County from 5:08pm on Monday to 10:27am yesterday, with 27 of them exceeding magnitude 5. They included two, of magnitude
CONDITIONAL: The PRC imposes secret requirements that the funding it provides cannot be spent in states with diplomatic relations with Taiwan, Emma Reilly said China has been bribing UN officials to obtain “special benefits” and to block funding from countries that have diplomatic ties with Taiwan, a former UN employee told the British House of Commons on Tuesday. At a House of Commons Foreign Affairs Committee hearing into “international relations within the multilateral system,” former Office of the UN High Commissioner for Human Rights (OHCHR) employee Emma Reilly said in a written statement that “Beijing paid bribes to the two successive Presidents of the [UN] General Assembly” during the two-year negotiation of the Sustainable Development Goals. Another way China exercises influence within the UN Secretariat is
Taiwan’s first drag queen to compete on the internationally acclaimed RuPaul’s Drag Race, Nymphia Wind (妮妃雅), was on Friday crowned the “Next Drag Superstar.” Dressed in a sparkling banana dress, Nymphia Wind swept onto the stage for the final, and stole the show. “Taiwan this is for you,” she said right after show host RuPaul announced her as the winner. “To those who feel like they don’t belong, just remember to live fearlessly and to live their truth,” she said on stage. One of the frontrunners for the past 15 episodes, the 28-year-old breezed through to the final after weeks of showcasing her unique