Asian stocks advanced this week, lifting the MSCI Asia-Pacific Index for the first time in a month, after G20 governments agreed to maintain stimulus efforts and Japan’s machinery orders grew more than estimated.
BHP Billiton Ltd and rival Rio Tinto Group both jumped in Sydney amid speculation looser monetary policies will continue to sustain inflows of cash into equities. Tractor maker Kubota Corp soared 9.9 percent in Tokyo. HSBC Holdings PLC gained 8.9 percent in Hong Kong this week after saying third-quarter profit was “significantly” higher than a year ago.
The MSCI Asia-Pacific Index advanced 1.6 percent to 118.28 this week, breaking a three-week losing streak. The gauge has lost 2.4 percent from a 13-month high on Oct. 20 on concern governments will withdraw stimulus measures.
“Asian economies are set to recover ahead of other regions,” said Soichiro Monji, chief strategist at Tokyo-based Daiwa SB Investments Ltd, which manages the equivalent of US$38 billion. “That’s the reason why exports and industrial production are improving so quickly. Next year, growth will be led by Asian economies.”
Australia’s S&P/ASX 200 Index gained 2.5 percent this week. Axa Asia-Pacific Holdings Ltd surged 34 percent after rejecting a hostile bid. The Hang Seng Index climbed 3.3 percent in Hong Kong, adding to last week’s 0.4 percent advance. Tokyo’s Nikkei 225 Stock Average dipped 0.2 percent.
The MSCI Asia-Pacific Index has climbed 68 percent from a more than five-year low on March 9, outpacing gains by the S&P 500 and Europe’s Dow Jones STOXX 600 Index. Dividend yields on the Asian gauge, based on payouts in the past 12 months, dropped to 2.3 percent on Wednesday, the lowest level in at least a year.
Taiwanese share prices are expected to encounter pressure next week as investors take profits from gains made in recent sessions, dealers said.
Investors are afraid that Wall Street will suffer further losses as it has showed signs of “rally fatigue” after failing to react to positive economic and corporate news, they said.
With a lackluster Wall Street, foreign institutional investors may cut their holdings in local shares, in turn also scaring away their retail counterparts, they added.
For the week to Friday, the weighted index rose 202.58 points or 2.71 percent to 7,665.63 after a 1.68 percent increase a week earlier.
Other markets on Friday:
SHANGHAI: Up 0.46 percent from Thursday. The Shanghai Composite Index, which covers both A and B shares, was up 14.70 points at 3,187.65.
SEOUL: Flat. The KOSPI lost 0.74 points from Thursday to close at 1,571.99. Concerns mounted about the potential loss of price competitiveness by major exporters as the US dollar remained weak.
SINGAPORE: Flat. The blue-chip Straits Times Index closed 0.99 points higher from Thursday at 2,727.23.
BANGKOK: Up 0.23 percent from Thursday. The Stock Exchange of Thailand (SET) composite index rose 1.61 points to close at 698.33 points.
KUALA LUMPUR: Flat. The Kuala Lumpur Composite Index fell 0.79 points from Thursday to close at 1,270.96.
MANILA: Down 1.29 percent from Thursday. The composite index fell 39.60 points to 3,034.32. Mining companies that had risen during the week felt the brunt of the fall on Friday.
MUMBAI: Up 0.92 percent from Thursday. The 30-share SENSEX index rose 152.8 points to 16,848.83.
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