Sun, Sep 20, 2009 page10

• Asian stocks climb for second week

  AVALANCHE The MSCI Asia Pacific Index climbed 0.46 percent last week, capping a 68 percent rally in Asia since the benchmark dropped to a five-year low on March 5

  • BLOOMBERG AND AFP
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  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.
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