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.
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
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,
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
STATE OF THE NATION: The legislature should invite the president to deliver an address every year, the TPP said, adding that Lai should also have to answer legislators’ questions The Chinese Nationalist Party (KMT) yesterday proposed inviting president-elect William Lai (賴清德) to make a historic first state of the nation address at the legislature following his inauguration on May 20. Lai is expected to face many domestic and international challenges, and should clarify his intended policies with the public’s representatives, KMT caucus secretary-general Hung Meng-kai (洪孟楷) said when making the proposal at a meeting of the legislature’s Procedure Committee. The committee voted to add the item to the agenda for Friday, along with another similar proposal put forward by the Taiwan People’s Party (TPP). The invitation is in line with Article 15-2