Asian technology stocks rose this week on speculation demand for computers would climb, while commodity shares fell after China moved to cool economic growth and Alcoa Inc reported lower-than-expected sales.
“Companies are demonstrating that economic conditions are improving, while the data is still pointing to an ongoing theme of recovery,” said Prasad Patkar, who helps oversee about US$1.9 billion at Platypus Asset Management in Sydney. “You now need to watch the underlying performance of the global economy once all the stimulus has washed through.”
The MSCI Asia-Pacific Index was little changed at 128.27 this week, as concern China would tighten money supply and an unexpected climb in US jobless claims countered signs of economic recovery.
Japan’s Nikkei 225 Stock Average lost 0.9 percent this week. China’s Shanghai Composite Index retreated 0.5 percent and Hong Kong’s Hang Seng Index sank 1.6 percent.
Thailand’s SET Index tumbled 6.8 percent in its holiday-shortened week after clashes between soldiers and protesters.
Technology-related stocks rose the second-most this week among the MSCI Asia-Pacific Index’s 10 industry groups.
Toshiba rose 3.7 percent to ¥511 and Ibiden surged 10 percent to ¥3,530 after Intel, the world’s biggest chipmaker, forecast second-quarter sales that exceeded analysts’ predictions, citing growing worldwide demand for computers.
Global personal-computer shipments topped estimates in the first quarter, the Connecticut-based research firm Gartner Inc said on Wedensday, citing a recovery in Europe.
Taiwan Semiconductor Manufacturing Co (台積電), the world’s largest contract maker of chips, climbed 0.5 percent to NT$63 in Taipei, its fourth weekly advance. Company chairman Morris Chang (張忠謀) said he expects a 22 percent increase in worldwide semiconductor sales this year.
Powerchip Semiconductor Corp (力晶半導體), Taiwan’s second-biggest maker of memory chips, soared 11 percent to NT$6.34 in Taipei to its highest close since August 2008.
The company posted its highest profit in three years as rising computer demand boosted sales. The company’s board also approved a plan to sell new shares and cancel existing shares.
The MSCI Asia-Pacific Index has climbed about 6 percent this year amid growing confidence in the global recovery. Companies in the gauge trade at 16 times estimated earnings on average, the cheapest level since January last year.
China reporting an 11.9 percent increase in first-quarter economic growth and better-than-estimated US earnings on Thursday drove the index to its highest level since Aug. 6, 2008.
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