Asian commodity stocks fell this week on concern China’s economic growth is slowing, while carmakers rose after a report showed their US sales advanced last month.
BHP Billiton Ltd, the world’s largest mining company, sank 2.8 percent in Sydney after the world’s two biggest copper producers said China’s plans to curb its economic expansion threaten to reduce demand for the metal. Toyota Motor Corp, the world’s largest carmaker, gained 1.4 percent in Tokyo. Fuji Heavy Industries Ltd surged 9.5 percent on speculation the maker of Subaru cars will book record profit in North America.
The MSCI Asia-Pacific Index was little changed this week at 113.42, bringing its decline this year to 5.8 percent. A measure of material stocks dropped the most this week among the gauge’s 10 industry groups, as purchasing managers’ indexes showed China’s manufacturing industry grew at a slower pace last month.
“Chinese economic growth remains a significant risk in the eyes of investors, particularly given the uncertainty surrounding other regions, particularly the euro-zone,” said Tim Schroeders, who helps manage about US$1.1 billion at Pengana Capital Ltd in Melbourne.
China’s Shanghai Composite Index lost 3.9 percent this week, Hong Kong’s Hang Seng Index rose less than 0.1 percent and Australia’s S&P/ASX 200 Index retreated 0.2 percent.
Japan’s Nikkei 225 Stock Average climbed 1.4 percent as gains in US sales of homes and cars boosted optimism demand for Asian-made products will drive corporate earnings. The measure was little changed on Friday after Naoto Kan was elected as Japan’s prime minister following the resignation of Yukio Hatoyama on Wednesday.
Taiwanese share prices closed down 0.21 percent on Friday as profit-taking emerged to erode early gains after the bourse staged a strong rebound in the previous session, dealers said later on Friday.
The weighted index fell 15.69 points to 7,344.59 after moving between 7,337.35 and 7,377.56 on turnover of NT$67.58 billion (US$2.10 billion).
The market opened 0.23 percent higher on follow-through buying from the previous day’s 2.28 percent jump, but profit taking emerged in mid-morning trade to compromise the earlier gains, with the index moving closer to the nearest resistance of around 7,400 points, the dealers said.
“Turnover remained thin. The market, therefore, failed to overcome the technical barriers ahead of 7,400 points,” TLG Asset Management (台壽保投信) analyst Arch Shih (施博元) said.
Other markets on Friday:
Jakarta rose 12.27 points, or 0.44 percent, from Thursday to 2,823.25.
Manila closed flat, edging up 1.82 points from Thursday to 3,357.05.
Mumbai rose 0.56 percent, or 95.36 points, from Thursday to 17,117.69.
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