Asian stocks rose after Japanese and US economic reports indicated growth in the world's two largest economies is sustainable. Toyota Motor Corp and Samsung Electronics Co led gains.
"We've got all the right signs as the economic fundamentals go," said Naoki Fujiwara, who manages the equivalent of US$180 million in equities at Shinkin Asset Management Co in Tokyo.
"The macro economic conditions globally remain quite strong to justify buying stocks."
The Morgan Stanley Capital International Asia-Pacific Index, which tracks more than 850 stocks, gained 0.6 percent to 88.94 at 8pm in Tokyo. That was the third straight advance, the longest winning streak since the three days ended April 7. It gained 2.6 percent this week.
Japan's Nikkei 225 Stock Average rose 1.3 percent and Topix index added 1.4 percent, after household spending had a record jump in April. In South Korea, the Kospi index gained 1.8 percent.
DBS Group Holdings Ltd led advances among Singapore's lenders after the central bank said it will lower a capital adequacy requirement, leaving them better able to compete with regional rivals. In Taiwan, banks advanced after Fitch Rating said the prospects for the industry is positive.
India's Sensex index shed 4.4 percent, the biggest decline in the region, led by power companies after the government said it would extend a deadline for state boards to split power generation and distribution assets.
All other benchmarks in Asia rose, except those of China and Malaysia.
Toyota Motor, the world's largest carmaker by market value, added 1.8 percent to ¥4,000. Ito-Yokado Co, Japan's No. 2 retailer, surged 3.2 percent to ¥4,490. Matsushita Electric Industrial Co, the world's No. 1 maker of consumer electronics, gained 1.3 percent to ¥1,526.
Household spending in April had its biggest gain since the government started tabulating the figure in 1975, jumping a seasonally adjusted 9.3 percent. Another report showed Japanese manufacturers increased production by 3.3 percent in April, the biggest gain in seven months.
"Japan's economic recovery is on the right track," said Osamu Nakashima, who helps manage US$117 billion at Sumitomo Mitsui Asset Management Co in Tokyo. "We are seeing enough evidence of growth and that's what's prompting buying into domestic stocks."
The Kospi climbed 14.05 to 816.51. Samsung Electronics, the world's second-biggest semiconductor maker, advanced 2.8 percent to 520,000 won. Hyundai Motor Co, Asia's largest carmaker outside of Japan, climbed 1.6 percent to 44,700 won.
South Korean industrial production increased a seasonally adjusted 1.1 percent in April after dropping 2.1 percent in March, the National Statistical Office reported in Seoul.
The US economy grew at a 4.4 percent annual pace from January through March, compared with a previous government estimate of 4.2 percent. US corporate profits jumped 31.6 percent in the year ended in March, the biggest increase since the first quarter of 1984, the Commerce Department said.
DBS Group, Singapore's largest bank by assets, rose 2.9 percent to S$14.20, while Oversea-Chinese Banking Corp, the No. 3, climbed 1.7 percent to S$12.
The island's central bank said it will lower the minimum capital adequacy requirement, bringing it closer to a standard applied to US, UK and other lenders.
"The banks can be more aggressive in their expansion plans," said Yang Sy Jian, head of research at UOB-Kay Hian Research Pte in Singapore. "The change will even out the rules of the game and put our local banks on a more level playing field."
The TAIEX rose 1.7 percent, paced by lenders after Fitch Ratings yesterday said the outlook for the banking industry is positive this year, citing "significant improvement in asset quality and profitability in 2003."
First Financial Holding Co (
India's Sensitive Index fell for a fourth day, its longest losing streak in three months.
Tata Power Co, the nation's No. 2 power producer by market value, slumped 7.2 percent to 274.90 rupees. Reliance Energy Ltd, India's biggest, plunged 7.5 percent to 497.75 rupees.
The government said it would extend a June 10 deadline to split their generation and transmission businesses. The government has yet to set a new deadline.
Lenders such as ICICI Bank Ltd, the country's biggest non-state commercial bank, lost 6.9 percent to 246.35 rupees, after the government announced plans to lower interest rates on loans to farmers.
Shares of Yahoo Japan Corp, Shinsei Bank Ltd and SK Corp rose. The three companies are among the 224 companies added to Morgan Stanley Capital International Inc's stock indexes from the close of today.
Yahoo Japan, a unit of the world's most-visited Internet directory, rallied 6.4 percent to ¥1.16 million. Shinsei Bank, which Ripplewood Holdings Inc and other investors bought from the government in 2000, surged 7 percent to 746. The lender today said net income rose 25 percent in its first earnings since it went public in February.
SK Corp, South Korea's biggest oil refiner, advanced 5.5 percent to 50,000 won. Chi Mei Optoelectronics Corp, Taiwan's second-largest maker of flat-panel displays used in computers, rose 1.4 percent to NT$72.
The changes are part of the global index provider's annual review. MSCI adds or subtracts members to ensure that 85 percent of publicly traded shares available within each industry are included in its country benchmarks.
Napoleon Osorio is proud of being the first taxi driver to have accepted payment in bitcoin in the first country in the world to make the cryptocurrency legal tender: El Salvador. He credits Salvadoran President Nayib Bukele’s decision to bank on bitcoin three years ago with changing his life. “Before I was unemployed... And now I have my own business,” said the 39-year-old businessman, who uses an app to charge for rides in bitcoin and now runs his own car rental company. Three years ago the leader of the Central American nation took a huge gamble when he put bitcoin
Demand for artificial intelligence (AI) chips should spur growth for the semiconductor industry over the next few years, the CEO of a major supplier to Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) said, dismissing concerns that investors had misjudged the pace and extent of spending on AI. While the global chip market has grown about 8 percent annually over the past 20 years, AI semiconductors should grow at a much higher rate going forward, Scientech Corp (辛耘) chief executive officer Hsu Ming-chi (許明琪) told Bloomberg Television. “This booming of the AI industry has just begun,” Hsu said. “For the most prominent
PARTNERSHIPS: TSMC said it has been working with multiple memorychip makers for more than two years to provide a full spectrum of solutions to address AI demand Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said it has been collaborating with multiple memorychip makers in high-bandwidth memory (HBM) used in artificial intelligence (AI) applications for more than two years, refuting South Korean media report's about an unprecedented partnership with Samsung Electronics Co. As Samsung is competing with TSMC for a bigger foundry business, any cooperation between the two technology heavyweights would catch the eyes of investors and experts in the semiconductor industry. “We have been working with memory partners, including Micron, Samsung Memory and SK Hynix, on HBM solutions for more than two years, aiming to advance 3D integrated circuit
NATURAL PARTNERS: Taiwan and Japan have complementary dominant supply chain positions, are geographically and culturally close, and have similar work ethics Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and other related companies would add ￥11.2 trillion (US$78.31 billion) to Japan’s chipmaking hot spot Kumamoto Prefecture over the next decade, a local bank’s analysis said. Kyushu Financial Group, a lender based in Kumamoto’s capital, almost doubled its projection for the economic impact that the chip sector would bring to the region compared to its estimate a year earlier, a presentation on Thursday said. The bank said that 171 firms had made new investments since November 2021, up from 90 in an earlier analysis. TSMC’s Kumamoto location was once a sleepy farming area, but has undergone
RSS