Asian stocks gained this week, driving up the MSCI Asia-Pacific Index by the most in seven weeks as concern eased that the Federal Reserve will raise borrowing costs to curb inflation.
Evergreen Marine Corp (長榮海運), Asia’s largest container-shipping line, surged 11 percent in Taipei after boosting freight rates. Li & Fung Ltd (利豐), which gets 62 percent of sales from the US, gained 2.9 percent in Hong Kong as Fed Chairman Ben Bernanke said low interest rates are still needed to boost growth. Woolworths Ltd, Australia’s biggest retailer, advanced 4 percent in Sydney after reporting higher profit and announcing a share buyback.
“Bernanke stuck to the script and emphasized the Fed’s commitment to maintaining interest rates at low levels until the economic recovery becomes self-sustaining,” said Tim Schroeders, who helps manage about US$1.1 billion of equity investments at Pengana Capital Ltd in Melbourne.
The MSCI Asia-Pacific Index gained 2.4 percent to 118.07 this week, the most since the week ended Jan. 8. The gauge has lost 6.9 percent from a 17-month high on Jan. 15 on speculation central banks will start withdrawing stimulus measures. It has risen 1.5 percent this month.
Hong Kong’s Hang Seng Index climbed 3.6 percent this week, the biggest gain in the Asia-Pacific region, as the city’s economic growth beat estimates.
Japan’s Nikkei 225 Stock Average rose less than 0.1 percent to 10,126.03 as the nation’s exports and factory output increased.
China’s Shanghai Composite Index increased 1.1 percent, resuming trade after a one-week holiday for the Lunar New Year, as the government said it will extend support for the country’s industries amid weak global demand.
The MSCI Asia-Pacific Index surged 34 percent last year as governments worldwide boosted spending and central banks lowered interest rates to help restore economies battered by the global recession. The gauge has fallen about 2.3 percent this year on signs governments from China to the US and India will tighten lending and withdraw stimulus policies.
Japanese exports climbed at the fastest pace in almost 30 years last month and the country’s factory output increased for the 11th straight month, government reports said this week.
Taiwan’s TAIEX index rose 9.1, or 0.1 percent, to 7,436.1 at the close of Taipei trading on Friday. The benchmark index was little changed for the week and fell 2.7 percent this month.
Coretronic Corp (中強光電) rose 2.7 percent to NT$43.85 after the Economic Daily News reported sales of the company’s liquid-crystal-display backlight products will rise 30 percent this year from last year.
Hua Nan Financial Holdings Co (華南金控) gained 3.6 percent to NT$20 on speculation investors are buying the stock ahead of a board election, Masterlink Securities Corp (元富證券) analyst Greg Ou said.
“There has been ongoing speculation the government may increase its board member seats in the coming board elections,” Ou said in a telephone interview in Taipei.
Other markets on Friday:
Singapore closed flat, edging up 1.71 points from Thursday to 2,750.86.
Seoul rose 0.45 percent, or 7.07 points, from Thursday to 1,594.58.
Wellington gained 0.14 percent, or 4.42 points, from Thursday to close at 3,156.10.
Manila closed 0.41 percent, or 12.49 points, higher from Thursday at 3,043.75.
Bangkok rose 0.60 percent, or 4.27 points, from Thursday to close at 721.37. Trading was relatively heavy for the market, with nearly 20 billion baht exchanged, despite Thailand being on edge as it awaits a court verdict on the fate of former Thai premier Thaksin Shinawatra’s US$2.3 billion fortune.
Mumbai rose 175.35 points, 1.08 percent, from Thursday to 16,429.55. The market was boosted by a budget that promised to cut its enormous budget deficit from a 16-year high.
WAITING GAME: The US has so far only offered a ‘best rate tariff,’ which officials assume is about 15 percent, the same as Japan, a person familiar with the matter said Taiwan and the US have completed “technical consultations” regarding tariffs and a finalized rate is expected to be released soon, Executive Yuan spokeswoman Michelle Lee (李慧芝) told a news conference yesterday, as a 90-day pause on US President Donald Trump’s “reciprocal” tariffs is set to expire today. The two countries have reached a “certain degree of consensus” on issues such as tariffs, nontariff trade barriers, trade facilitation, supply chain resilience and economic security, Lee said. They also discussed opportunities for cooperation, investment and procurement, she said. A joint statement is still being negotiated and would be released once the US government has made
NEW GEAR: On top of the new Tien Kung IV air defense missiles, the military is expected to place orders for a new combat vehicle next year for delivery in 2028 Mass production of Tien Kung IV (Sky Bow IV) missiles is expected to start next year, with plans to order 122 pods, the Ministry of National Defense’s (MND) latest list of regulated military material showed. The document said that the armed forces would obtain 46 pods of the air defense missiles next year and 76 pods the year after that. The Tien Kung IV is designed to intercept cruise missiles and ballistic missiles to an altitude of 70km, compared with the 60km maximum altitude achieved by the Missile Segment Enhancement variant of PAC-3 systems. A defense source said yesterday that the number of
Taiwanese exports to the US are to be subject to a 20 percent tariff starting on Thursday next week, according to an executive order signed by US President Donald Trump yesterday. The 20 percent levy was the same as the tariffs imposed on Vietnam, Sri Lanka and Bangladesh by Trump. It was higher than the tariffs imposed on Japan, South Korea and the EU (15 percent), as well as those on the Philippines (19 percent). A Taiwan official with knowledge of the matter said it is a "phased" tariff rate, and negotiations would continue. "Once negotiations conclude, Taiwan will obtain a better
FLOOD RECOVERY: “Post-Typhoon Danas reconstruction special act” is expected to be approved on Thursday, the premier said, adding the flood control in affected areas would be prioritized About 200cm of rainfall fell in parts of southern Taiwan from Monday last week to 9am yesterday, the Central Weather Administration (CWA) said. Kaohsiung’s Taoyuan District (桃源) saw total rainfall of 2,205mm, while Pingtung County’s Sandimen Township (三地門) had 2,060.5mm and Tainan’s Nanhua District (南化) 1,833mm, according to CWA data. Meanwhile, Alishan (阿里山) in Chiayi County saw 1,688mm of accumulated rain and Yunlin County’s Caoling (草嶺) had 1,025mm. The Pingtung County Government said that 831 local residents have been pre-emptively evacuated from mountainous areas. A total of 576 are staying with relatives in low-lying areas, while the other 255 are in shelters. CWA forecaster
RSS