Asian stocks advanced for a second week, sending the MSCI Asia Pacific Index to the highest in over a year, as speculation mounted the global recession is ending and commodities prices rallied.
Zijin Mining Group Co, China’s largest bullion producer, rose 3.9 percent as gold prices reached a record high. Posco jumped 5.3 percent, leading gains by the region’s steelmakers, after BHP Billiton Ltd predicted steel production will double in the next 15 years. Aiful Corp, Japan’s third-largest consumer lender by revenue, plunged 44 percent, dragging rivals lower as well, as the company negotiated to suspend payments on its debt.
“The flow of good economic news has become an avalanche,” said Shane Oliver, head of investment strategy with AMP Capital Investors Ltd, which manages about US$75 billion. “Six months ago investors were allowing for a Great Depression-type of scenario. Instead, we’re seeing clear evidence of a recovery.”
The MSCI Asia Pacific Index climbed 0.46 percent last week to 118.36. Asian markets have rallied 68 percent since the MSCI benchmark dropped to a five-year low on March 9.
Japan’s Nikkei 225 Stock Average fell 0.7 percent, joining the Philippines and Singapore as the only Asian markets to post losses. India’s Sensex index climbed 0.2 percent led by software makers including Tata Consultancy Services Ltd that got a boost from improved prospects for global growth.
US retail sales excluding cars gained 1.1 percent last month, a Sept. 15 report, said while the US Federal Reserve Bank of New York said its general economic index rose this month.
On Thursday, South Korea reported a 7.6 percent increase in department store sales for last month, the biggest jump since January, while the Bank of Japan upgraded its assessment of the economy to say it sees “signs of recovery.”
The 32 percent advance this year by the Asian gauge tops an 18 percent rise by the Standard & Poor’s 500 Index and 23 percent climb by Europe’s STOXX 600 Index.
Taiwanese shares were expected to encounter selling next week as the market moves closer to the nearest resistance level of 7,600 points after a recent strong showing, dealers said on Friday.
Pressure is likely to focus on electronics which have scored the largest gains with foreign institutional investors building up their positions, they said.
Dealers will watch closely how Wall Street performs following recent significant gains amid fears that any downside in US market will impact the local bourse, they said.
While the room for the market is expected to be limited next week, selling may be abating before technical support at around 7,100, dealers said.
For the week to Friday, the weighted index rose 189.41 points or 2.58 percent to 7,526.55 after a 2.57 percent increase a week earlier.
Others markets on Friday:
SYDNEY: Down 0.46 percent. The S&P/ASX 200 dropped 21.7 points to 4,693.2.
BANGKOK: Up 0.63 percent. The Stock Exchange of Thailand gained 4.44 points to close at 713.67, a 14-month high.
KUALA LUMPUR: Up 0.20 percent. The Kuala Lumpur Composite Index gained 2.40 points to 1,221.20. Maybank added 1.10 percent to 6.68 ringgit and gaming group Genting was up 1.40 percent at 7.20.
MANILA: Up 0.62 percent. The composite index gained 17.36 points to 2,789.33.
WELLINGTON: Up 0.12 percent. The NZX-50 rose 3.66 points to 3,156.46.
MUMBAI: Up 0.18 percent. The 30-share Sensex rose 30.19 points to 16,741.3, a near 16-month high.
The government is aiming to recruit 1,096 foreign English teachers and teaching assistants this year, the Ministry of Education said yesterday. The foreign teachers would work closely with elementary and junior-high instructors to create and teach courses, ministry official Tsai Yi-ching (蔡宜靜) said. Together, they would create an immersive language environment, helping to motivate students while enhancing the skills of local teachers, she said. The ministry has since 2021 been recruiting foreign teachers through the Taiwan Foreign English Teacher Program, which offers placement, salary, housing and other benefits to eligible foreign teachers. Two centers serving northern and southern Taiwan assist in recruiting and training
WIDE NET: Health officials said they are considering all possibilities, such as bongkrekic acid, while the city mayor said they have not ruled out the possibility of a malicious act of poisoning Two people who dined at a restaurant in Taipei’s Far Eastern Department Store Xinyi A13 last week have died, while four are in intensive care, the Taipei Department of Health said yesterday. All of the outlets of Malaysian vegetarian restaurant franchise Polam Kopitiam have been ordered to close pending an investigation after 11 people became ill due to suspected food poisoning, city officials told a news conference in Taipei. The first fatality, a 39-year-old man who ate at the restaurant on Friday last week, died of kidney failure two days later at the city’s Mackay Memorial Hospital. A 66-year-old man who dined
EYE ON STRAIT: The US spending bill ‘doubles security cooperation funding for Taiwan,’ while also seeking to counter the influence of China US President Joe Biden on Saturday signed into law a US$1.2 trillion spending package that includes US$300 million in foreign military financing to Taiwan, as well as funding for Taipei-Washington cooperative projects. The US Congress early on Saturday overwhelmingly passed the Further Consolidated Appropriations Act 2024 to avoid a partial shutdown and fund the government through September for a fiscal year that began six months ago. Under the package, the Defense Appropriations Act would provide a US$27 billion increase from the previous fiscal year to fund “critical national defense efforts, including countering the PRC [People’s Republic of China],” according to a summary
‘CARRIER KILLERS’: The Tuo Chiang-class corvettes’ stealth capability means they have a radar cross-section as small as the size of a fishing boat, an analyst said President Tsai Ing-wen (蔡英文) yesterday presided over a ceremony at Yilan County’s Suao Harbor (蘇澳港), where the navy took delivery of two indigenous Tuo Chiang-class corvettes. The corvettes, An Chiang (安江) and Wan Chiang (萬江), along with the introduction of the coast guard’s third and fourth 4,000-tonne cutters earlier this month, are a testament to Taiwan’s shipbuilding capability and signify the nation’s resolve to defend democracy and freedom, Tsai said. The vessels are also the last two of six Tuo Chiang-class corvettes ordered from Lungteh Shipbuilding Co (龍德造船) by the navy, Tsai said. The first Tuo Chiang-class vessel delivered was Ta Chiang (塔江)