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).
Beijing’s continued provocations in the Taiwan Strait reveal its intention to unilaterally change the “status quo” in the area, the US Department of State said on Saturday, calling for a peaceful resolution to cross-strait issues. The Coast Guard Administration (CGA) reported that four China Coast Guard patrol vessels entered restricted and prohibited waters near Kinmen County on Friday and again on Saturday. A State Department spokesperson said that Washington was aware of the incidents, and urged all parties to exercise restraint and refrain from unilaterally changing the “status quo.” “Maintaining peace and stability across the Taiwan Strait is in line with our [the
EXTENDED RANGE: Hsiung Sheng missiles, 100 of which might be deployed by the end of the year, could reach Chinese command posts and airport runways, a source said A NT$16.9 billion (US$534.93 million) project to upgrade the military’s missile defense systems would be completed this year, allowing the deployment of at least 100 long-range Hsiung Sheng missiles and providing more deterrence against China, military sources said on Saturday. Hsiung Sheng missiles are an extended-range version of the Hsiung Feng IIE (HF-2E) surface-to-surface cruise missile, and are believed to have a range of up to 1,200km, which would allow them to hit targets well inside China. They went into mass production in 2022, the sources said. The project is part of a special budget for the Ministry of National Defense aimed at
READY TO WORK: Taiwan is eager to cooperate and is hopeful that like-minded states will continue to advocate for its inclusion in regional organizations, Lai said Maintaining the “status quo” in the Taiwan Strait, and peace and stability in the Indo-Pacific region must be a top priority, president-elect William Lai (賴清德) said yesterday after meeting with a delegation of US academics. Leaders of the G7, US President Joe Biden and other international heads of state have voiced concerns about the situation in the Strait, as stability in the region is necessary for a safe, peaceful and prosperous world, Lai said. The vice president, who is to be inaugurated in May, welcomed the delegation and thanked them for their support for Taiwan and issues concerning the Strait. The international community
COOPERATION: Two crewmembers from a Chinese fishing boat that sank off Kinmen were rescued, two were found dead and another two were still missing at press time The Coast Guard Administration (CGA) was yesterday working with Chinese rescuers to find two missing crewmembers from a Chinese fishing boat that sank southwest of Kinmen County yesterday, killing two crew. The joint operation managed to rescue two of the boat’s six crewmembers, but two were already dead when they were pulled from the water, the agency said in a statement. Rescuers are still searching for two others from the Min Long Yu 61222, a boat registered in China’s Fujian Province that capsized and sank 1.03 nautical miles (1.9km) southwest of Dongding Island (東碇), it added. CGA Director-General Chou Mei-wu (周美伍) told a