Asian stocks fell for the third week in four, led by Japanese banks, after the nation’s economy grew more slowly than estimated. Technology shares rose on optimism a US economic recovery will bolster demand.
Mitsubishi UFJ Financial Group Inc, Japan’s biggest publicly traded bank, sank 8.3 percent. Santos Ltd, Australia’s third-biggest oil and gas producer, fell 7.7 percent after saying output next year may drop. Japanese chipmaker Elpida Memory Inc surged 9.8 percent in Tokyo as US jobless claims fell to a one-year low. Maanshan Iron & Steel Co, the No. 2 Chinese mill listed in Hong Kong, climbed 9.8 percent after China’s industrial production increased.
“Emerging markets will continue to lead growth in the world economy next year, and companies that can make money in those markets will remain in the spotlight,” said Yoshinori Nagano, a senior strategist in Tokyo at Daiwa Asset Management Co.
The MSCI Asia-Pacific Index fell 0.4 percent this week to 119.68. The gauge’s 5.5 percent gain the previous week was its steepest climb in seven months. Japan’s Nikkei 225 Stock Average added 0.9 percent this week, while South Korea’s KOSPI Index climbed 2 percent.
Hong Kong’s Hang Seng Index fell 2.7 percent and the Shanghai Composite Index retreated 2.1 percent. Australia’s S&P/ASX 200 Index lost 1.4 percent, even after a government report showed the country’s jobless rate dropped.
Mitsubishi UFJ dropped 8.3 percent to ¥455. Sumitomo Mitsui Financial Group Inc, Japan’s second-biggest bank by value, lost 6.6 percent to ¥2,710. Mizuho Financial Group Inc, the No. 3, sank 5.9 percent to ¥159.
Elpida Memory, Japan’s biggest computer memory-chip maker, advanced 9.8 percent to ¥1,331. A US government report this week showed the four-week average number of Americans filing for jobless benefits declined to a one-year low.
Taiwanese share prices are expected to gain next week thanks to optimism about relations with China ahead of high-level cross-strait talks, dealers said on Friday.
Companies with strong interests in China are expected to attract buying on hopes that the meeting from Dec. 21 to Dec. 23 will yield concrete measures on trade and investment, they said.
But with many foreign institutional investors turning quiet ahead of Christmas, turnover may be slight and the market is likely to face strong pressure at 7,900 points next week, dealers said.
For the week to Friday, Taipei’s weighted index rose 144.16 points, or 1.88 percent, to 7,795.07. That came after a 2.14 percent increase a week earlier.
“Old-economy stocks have positioned themselves well for a take-off after recent consolidation. The talks [with China] could serve as a catalyst,” Grand Cathay Securities (大華證券) analyst Mars Hsu said.
MORE VISITORS: The Tourism Administration said that it is seeing positive prospects in its efforts to expand the tourism market in North America and Europe Taiwan has been ranked as the cheapest place in the world to travel to this year, based on a list recommended by NerdWallet. The San Francisco-based personal finance company said that Taiwan topped the list of 16 nations it chose for budget travelers because US tourists do not need visas and travelers can easily have a good meal for less than US$10. A bus ride in Taipei costs just under US$0.50, while subway rides start at US$0.60, the firm said, adding that public transportation in Taiwan is easy to navigate. The firm also called Taiwan a “food lover’s paradise,” citing inexpensive breakfast stalls
TRADE: A mandatory declaration of origin for manufactured goods bound for the US is to take effect on May 7 to block China from exploiting Taiwan’s trade channels All products manufactured in Taiwan and exported to the US must include a signed declaration of origin starting on May 7, the Bureau of Foreign Trade announced yesterday. US President Donald Trump on April 2 imposed a 32 percent tariff on imports from Taiwan, but one week later announced a 90-day pause on its implementation. However, a universal 10 percent tariff was immediately applied to most imports from around the world. On April 12, the Trump administration further exempted computers, smartphones and semiconductors from the new tariffs. In response, President William Lai’s (賴清德) administration has introduced a series of countermeasures to support affected
CROSS-STRAIT: The vast majority of Taiwanese support maintaining the ‘status quo,’ while concern is rising about Beijing’s influence operations More than eight out of 10 Taiwanese reject Beijing’s “one country, two systems” framework for cross-strait relations, according to a survey released by the Mainland Affairs Council (MAC) on Thursday. The MAC’s latest quarterly survey found that 84.4 percent of respondents opposed Beijing’s “one country, two systems” formula for handling cross-strait relations — a figure consistent with past polling. Over the past three years, opposition to the framework has remained high, ranging from a low of 83.6 percent in April 2023 to a peak of 89.6 percent in April last year. In the most recent poll, 82.5 percent also rejected China’s
PLUGGING HOLES: The amendments would bring the legislation in line with systems found in other countries such as Japan and the US, Legislator Chen Kuan-ting said Democratic Progressive Party (DPP) Legislator Chen Kuan-ting (陳冠廷) has proposed amending national security legislation amid a spate of espionage cases. Potential gaps in security vetting procedures for personnel with access to sensitive information prompted him to propose the amendments, which would introduce changes to Article 14 of the Classified National Security Information Protection Act (國家機密保護法), Chen said yesterday. The proposal, which aims to enhance interagency vetting procedures and reduce the risk of classified information leaks, would establish a comprehensive security clearance system in Taiwan, he said. The amendment would require character and loyalty checks for civil servants and intelligence personnel prior to
RSS