Asian markets were mixed yesterday as Japanese stocks bounced back from losses in previous days to hit a five-year high, while Hong Kong declined for the second day in a row. Singapore shares ended at a six-year high.
The benchmark Nikkei 225 index gained 230.46 points, or 1.40 percent, to finish at 16,710.55 points on the Tokyo Stock Exchange. It was the highest result since Sept. 1, 2000. On Wednesday, the index lost about 1 percent.
"The currency and lower oil are important external factors that are helping psychologically and meshing with internal factors like earnings," said Masanori Hoshina, head of Global Portfolio Marketing and Trading at BNP Paribas.
Electronics and auto stocks, including Sony Corp, Casio Computer Co and Mazda Motor Corp, made moderate gains on the back of the dollar's strength against the yen.
Brokerages and paper and pulp stocks also advanced, as did real estate issues, including the country's top real estate developer Nomura Estate Co.
Konica Minolta Holdings, which reported earlier good earnings, jumped 11.0 percent to end the day at ¥1,472 (US$12.47), making it one of the top 10 gainers on the Tokyo Stock Exchange.
In Hong Kong, stocks fell for a second day yesterday, dragged down by conglomerate Hutchison Whampoa Ltd (
The blue chip Hang Seng Index fell 50.61 points, or 0.3 percent, to 15,691.69.
Turnover totaled HK$33 billion (US$4.25 billion), down from HK$34.27 billion on Wednesday.
"Hutchison Whampoa dragged the market lower, as the listing of its Italy 3G operation remains in limbo," said Peter Lai, a director at DBS Vickers.
Hutchison Whampoa, the third-largest stock by market capitalization, ended 0.6 percent lower at HK$77.35.
The company said it still aims to float its Italian third-generation unit in the third quarter, subject to approval from regulators and market conditions.
The US dollar was trading at NT$29.7 at 10am today on the Taipei Foreign Exchange, as the New Taiwan dollar gained NT$1.364 from the previous close last week. The NT dollar continued to rise today, after surging 3.07 percent on Friday. After opening at NT$30.91, the NT dollar gained more than NT$1 in just 15 minutes, briefly passing the NT$30 mark. Before the US Department of the Treasury's semi-annual currency report came out, expectations that the NT dollar would keep rising were already building. The NT dollar on Friday closed at NT$31.064, up by NT$0.953 — a 3.07 percent single-day gain. Today,
‘SHORT TERM’: The local currency would likely remain strong in the near term, driven by anticipated US trade pressure, capital inflows and expectations of a US Fed rate cut The US dollar is expected to fall below NT$30 in the near term, as traders anticipate increased pressure from Washington for Taiwan to allow the New Taiwan dollar to appreciate, Cathay United Bank (國泰世華銀行) chief economist Lin Chi-chao (林啟超) said. Following a sharp drop in the greenback against the NT dollar on Friday, Lin told the Central News Agency that the local currency is likely to remain strong in the short term, driven in part by market psychology surrounding anticipated US policy pressure. On Friday, the US dollar fell NT$0.953, or 3.07 percent, closing at NT$31.064 — its lowest level since Jan.
The New Taiwan dollar and Taiwanese stocks surged on signs that trade tensions between the world’s top two economies might start easing and as US tech earnings boosted the outlook of the nation’s semiconductor exports. The NT dollar strengthened as much as 3.8 percent versus the US dollar to 30.815, the biggest intraday gain since January 2011, closing at NT$31.064. The benchmark TAIEX jumped 2.73 percent to outperform the region’s equity gauges. Outlook for global trade improved after China said it is assessing possible trade talks with the US, providing a boost for the nation’s currency and shares. As the NT dollar
The Financial Supervisory Commission (FSC) yesterday met with some of the nation’s largest insurance companies as a skyrocketing New Taiwan dollar piles pressure on their hundreds of billions of dollars in US bond investments. The commission has asked some life insurance firms, among the biggest Asian holders of US debt, to discuss how the rapidly strengthening NT dollar has impacted their operations, people familiar with the matter said. The meeting took place as the NT dollar jumped as much as 5 percent yesterday, its biggest intraday gain in more than three decades. The local currency surged as exporters rushed to
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