Asian stocks fell this week for the first time in five weeks on concern the region’s central banks would boost efforts to curb inflation and that EU leaders will fail to agree on an aid package for Greece.
Poly Real Estate Group Co fell 3.2 percent in Shanghai on concern local governments in China are stepping up measures to limit land supply. Li & Fung Ltd (利豐), a trading company that supplies Wal-Mart Stores Inc, slumped 11 percent after reporting lower-than-estimated earnings. PetroChina Co (中石油), China’s biggest energy producer, dropped 5.1 percent after agreeing to take over Australia’s Arrow Energy Ltd. Nintendo Co surged 15 percent in Osaka, Japan, after saying it will sell a 3D video-game console that doesn’t require glasses.
“Investors are increasingly jittery about the inflationary outlook and high levels of sovereign debt,” said Tim Schroeders, who helps manage about US$1.1 billion at Pengana Capital Ltd in Melbourne.
The MSCI Asia-Pacific Index fell 0.4 percent in the past week after India unexpectedly increased its benchmark interest rate on March 19 and as European leaders discussed how to rescue debt-stricken Greece. The index climbed on Friday, on speculation Europe will agree on a bailout.
Japan’s Nikkei 225 Stock Average rose 1.6 percent this week to its highest close since October 2008, as a weaker yen boosted the earnings outlook for companies dependent on overseas demand. The market was closed on March 22 for a public holiday.
Hong Kong’s Hang Seng Index fell 1.5 percent this week, and China’s Shanghai Composite Index dropped 0.3 percent. Australia’s S&P/ASX 200 Index gained 0.5 percent, South Korea’s Kospi index gained 0.7 percent.
China’s stocks fell the most in two weeks on Thursday on concern rising trade tensions will hurt the outlook for exports and the government may further tighten policy to curb asset bubbles.
“We’re worried that the currency issue will lead to trade protectionism, which will hurt the global economic recovery,” said Xiao Bo, Beijing-based strategist at Huarong Securities Co. “Government measures to tame inflation are likely to weigh on the market, especially on the property sector.”
The MSCI Asia-Pacific Index has climbed 3.3 percent this year as improving US jobs data, a Federal Reserve pledge to keep borrowing costs low and a Japanese bank-lending program eased concern that budget deficits in Europe will derail the global recovery.
Taiwan’s TAIEX index rose 38.76, or 0.5 percent, to 7,876.86 at the close of Taipei trading on Friday, the third day of gains. The benchmark index fell 0.3 percent this week, the first decline in four weeks.
Gintech Energy Corp (昱晶能源), the nation’s second-largest solar-cell maker, gained 6.4 percent to NT$98, the highest since Dec. 16. Neo Solar Power Corp (新日光) advanced 6.9 percent to NT$76.20, the highest since Jan. 6.
Hon Hai Precision Industry Co (鴻海精密) decreased 1.8 percent to NT$134. The world’s largest contract maker of electronics may buy three Sony television assembly factories in Spain and Slovakia, the Commercial Times reported, citing a Citigroup Inc report on Thursday.
Hon Hai spokesman Edmund Ding (丁祈安) declined to comment. Sony spokesman Hiroshi Okubo declined to comment which TV assembly plants they are planning to sell or whether they are in talks with Hon Hai.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft