Asian stocks rose for the sixth time since the middle of last month as higher corporate earnings countered S&P’s cut of Japan’s credit rating and concern that Chinese policymakers will tighten monetary policy.
Samsung Electronics Co, the world’s second-biggest maker of mobile phones, advanced to a record high in Seoul and Keppel Corp, an oil-rig builder, gained 5.8 percent in Singapore after they reported earnings that exceeded analyst estimates. Honda Motor Co, Japan’s No. 3 carmaker by sales, climbed 7.6 percent after Nomura Holdings Inc boosted its investment rating.
The MSCI Asia-Pacific Index rose 0.86 percent to 137.65 this week. Of the 131 companies in the gauge that reported earnings for the latest quarter as of Friday, 61 exceeded analysts’ estimates, while 52 missed them, according to data compiled by Bloomberg.
“There are strong expectations that earnings will improve,” said Koichi Kurose, chief strategist in Tokyo at Resona Bank Ltd.
The MSCI gauge had its first weekly drop in a month-and-a-half last week amid concern faster-than-expected economic growth in China will add pressure on policymakers to accelerate efforts to tame inflation.
Japan’s Nikkei 225 Stock Average increased 0.8 percent this week and Australia’s S&P/ASX 200 Index gained 0.4 percent.
Taiwan’s TAIEX jumped 2.1 percent to close at 9,145.35, the most among benchmark indexes in the Asia-Pacific.
China’s Shanghai Composite Index advanced 1.4 percent, while Hong Kong’s Hang Seng Index lost 1.1 percent.
India’s Sensitive Index dropped 3.2 percent, the most among benchmark indexes in the Asia-Pacific, after the nation’s central bank on Tuesday raised the benchmark interest rate to a two-year high and signaled further increases in borrowing costs as it battles inflation.
Asian exporters advanced after US Federal Reserve policymakers maintained plans to buy US$600 billion of Treasuries through June to stimulate growth in the world’s biggest economy.
Sony Corp, the maker or Bravia televisions and PlayStation game consoles, gained 2.9 percent to ￥2,908. HTC Corp (宏達電), a Taiwanese maker of mobile phones that counts the US as its biggest market, surged 10 percent to NT$979 in Taipei.
Japanese banks declined after S&P cut the nation’s credit rating on Thursday for the first time in nine years as persistent deflation and political gridlock undermine efforts to reduce a ￥943 trillion (US$11 trillion) debt burden, the world’s biggest.
In other markets on Friday:
Manila fell 0.50 percent, or 20.15 points, from Thursday to 3,970.34.
Wellington was flat, edging up 1.7 points from Thursday to 3,352.6.
Mumbai fell 1.54 percent, or 288.46 points, from Thursday to 18,395.97, near to a five-month low, on fears of foreign funds exiting from local equities as interest rates and inflation rise.
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