Asian stocks rose this week, driving the MSCI Asia-Pacific Index to its highest level in 11 weeks as economic reports spurred confidence in the global recovery, boosting commodity prices.
Datong Coal Industry Co (大同煤業股份), China’s third-largest coal producer, jumped 14 percent in Shanghai as an index of the country’s manufacturing industry rose last month. Lihir Gold Ltd soared 31 percent in Sydney after rejecting a bid from Australia’s largest gold producer. Dai-ichi Life Insurance Co, which completed the world’s largest initial public offering in two years, rose 1.6 percent on its first full day of trading in Tokyo. Hyundai Motor Co jumped 10 percent in Seoul, as South Korean government’s exports report beat economist estimates.
“Growth is starting to look more and more entrenched,” said Nader Naeimi, an investment strategist in Sydney at AMP Capital Investors, which oversees about US$90 billion globally. “Investors are now looking for the recovery to turn into an outright expansion.”
The MSCI Asia-Pacific Index advanced 1.7 percent this week as economic reports from the US and Asia showed signs of global recovery, and as commodity prices rose.
Japan’s Nikkei 225 Stock Average rose 2.6 percent this week to its highest close since October 2008, as the yen continued to weaken from the previous week, boosting the earnings outlook for companies dependent on overseas demand.
Hong Kong’s Hang Seng Index gained 2.3 percent this week, and China’s Shanghai Composite Index advanced 3.2 percent. Australia’s S&P/ASX 200 Index climbed 0.2 percent, while South Korea’s KOSPI index rose 1.5 percent. Markets in Australia, Hong Kong, New Zealand, Singapore, India, the Philippines and Indonesia were closed on April 2 for holidays.
China’s Purchasing Managers’ Index rose to a seasonally adjusted 55.1 from 52 in February, according to Li & Fung Group (利豐), a Hong Kong-based company that releases data for the Federation of Logistics and Purchasing. The figure was in line with the median estimate in a Bloomberg News survey of 13 economists. Readings above 50 indicate expansion.
“The economy is in a good shape and growth is still gaining momentum,” said Dai Ming, a fund manager at Shanghai Kingsun Investment Management & Consulting Co. “We are definitely in a growth cycle.”
The MSCI Asia-Pacific Index climbed 3.9 percent last quarter, compared with 2.7 percent for the MSCI World Index, as economic data improved. The Asian gauge’s increase was its fourth-straight quarterly advance, lifting the average price of companies to 1.66 times corporate net worth, the highest level since September.
Taiwanese share prices closed higher on Friday, with the TAIEX moving up 12.84 points, or 0.16 percent, from Thursday to close at 8,025.93.
The local bourse opened at 8,046.29 and fluctuated between a low of 8,021.91 and a high of 8,050.99 during the day’s trading. Market turnover totaled NT$108.12 billion (US$3.41 billion).
Five of the eight major stock categories lost ground, with textile issues dropping the most at 0.36 percent. Construction shares plunged 0.25 percent, paper and pulp issues were down 0.19 percent, foodstuff shares moved down 0.05 percent and banking and financial stocks were down 0.02 percent.
Markets were closed for a public holiday in Australia, Hong Kong, India, Indonesia, New Zealand, the Philippines and Singapore.
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