Asian stocks rose last week, as better-than-estimated company earnings and forecasts boosted confidence in global economic growth. Concerns over Europe’s debt crisis weighed on gains.
NEC Corp, Japan’s largest maker of personal computers, jumped 5.4 for the week in Tokyo after posting higher-than-forecast net income. Samsung Electronics Co climbed 2.3 percent in Seoul after reporting record-high profit. Esprit Holdings Ltd, which makes 85 percent of its revenue in Europe, tumbled 5.3 percent in Hong Kong. China Vanke Co (萬科), China’s biggest listed property developer, fell 1.6 percent in the southern city of Shenzhen as China took steps to cool its real-estate market.
“The global economy is picking up and corporate earnings are improving,” said Kiyoshi Ishigane, a strategist in Tokyo at Mitsubishi UFJ Asset Management Co, which oversees about US$64 billion. “Investors aren’t very, very bullish, but cautiously believe the market will remain resilient.”
The MSCI Asia-Pacific Index rose 0.4 percent to 125.86 this week, giving the gauge a third straight monthly gain, adding 0.6 percent last month.
The measure has climbed 10 percent from its low this year on Feb. 8 as better-than-estimated economic and earnings reports globally offset concern Greece will default on its debt.
Japan’s TOPIX index rose 0.9 percent this week as a surge in US new home sales boosted the earnings prospects for Japanese exporters. The market was closed on Thursday for a national holiday.
Hong Kong’s Hang Seng Index fell 0.6 percent this week, while Australia’s S&P/ASX 200 Index declined 1.5 percent. China’s Shanghai Composite Index sank 3.8 percent on concern the government’s steps to cool its property market will hurt lenders and developers.
The MSCI Asia-Pacific Index has rebounded from its low this year as corporate earnings and economic data signaled the global recovery is continuing. The gauge slid 2 percent on Wednesday after downgrades of credit ratings for Greece and Portugal spurred concern Europe’s debt crisis will spread. Shares in the index trade at 16 times estimated earnings, compared with 14.8 times for the Standard & Poor’s 500 Index in the US and about 12.5 times for the STOXX Europe 600 Index.
The southern Chinese city of Shenzhen may limit local families to owning two homes, while the eastern city of Qingdao may raise land taxes for luxury homes and non-residential developments to 2 percent from 1 percent, the Shanghai Securities News reported on Thursday. Beijing was expected to introduce details for curbing the city’s property market, the newspaper reported.
“The market is worried China is over-tightening,” said Grace Tam, Hong Kong-based vice president of investment services at JPMorgan Asset Management Ltd, which manages about US$102 billion in Asia-Pacific assets. “The concern is that this could result in a worse-than-expected impact on China’s growth.”
Taiwanese share prices fell on Friday, with the TAIEX, the market’s key barometer, falling 49.8 points, or 0.61 percent, to close at 8,004.25.
The local bourse opened at 8,116.39 and fluctuated between 7,999.28 and 8,163.94. Market turnover totaled NT$152.04 billion (US$4.85 billion).
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
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
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