Asian stocks rose for a second consecutive week after the US Federal Reserve renewed its pledge to stimulate growth in the world’s biggest economy with low interest rates, boosting the outlook for the region’s exporters.
“We have a combination of loose monetary settings and low interest rates and strong earnings,” said Nader Naeimi, a Sydney-based strategist for AMP Capital, which has almost US$100 billion under management. “It’s a pretty good cocktail for a good equity market.”
The MSCI Asia Pacific Index rose 0.47 percent to 139.48 last week. The gauge gained 2.2 percent the previous week as US housing starts gained and companies such as Apple Inc reported earnings that beat estimates, boosting confidence in global economic growth.
The TAIEX fell 32.90 points, or 0.36 percent, to 9,007.87 on Friday. The benchmark index rose 0.4 percent this week and 3.7 percent this month.
“Ahead of the 9,100 point mark, the market is faced with great technical pressure,” TLG Asset Management (台壽保投信) analyst Arch Shih (施博元) said. “Many investors have been watching this closely.”
Shih said these investors have become wary as they have witnessed other major markets in the region, including China’s, falling amid fears that foreign investors will move funds out of Asia.
“I expect the local bourse will need some time to consolidate to digest the selling,” he said.
Selling was concentrated on large-cap stocks on Friday, in particular optoelectronics firms, after they announced worse-than-expected first quarter results, according to the dealers.
Taiwan Semiconductor (台積電) gained 3.2 percent to NT$73.20 on Friday. The company on -Thursday reported an 8 percent increase in first-quarter profit, more than analysts estimated, after demand for smartphones and tablets drove sales of pricier chips. Goldman Sachs boosted its rating on the stock to “buy” from “neutral” before the results, citing valuations and the company’s growth outlook.
Japan’s Nikkei 225 Stock Average increased 1.7 percent this week, extending a rebound following a record earthquake and tsunami on March 11 that left thousands dead and damaged supply chains. Australia’s S&P/ASX 200 Index advanced 1.8 percent this week, while Singapore’s Straits Times Index lost 0.5 percent. Hong Kong’s Hang Seng Index declined 1.7 percent. China’s Shanghai Composite Index dropped 3.3 percent, the biggest weekly decline since November.
Markets in Australia, New Zealand and Hong Kong were closed for a holiday on Monday. Australia was also closed the following day. Markets in Japan were closed on Friday.
In other markets on Friday:
Manila ended up 0.95 percent, or 40.68 points, from Thursday at 4,319.51.
Philippine Long Distance Telephone gained 1.0 percent to 2,486 pesos, Lopez Holdings added 4.2 percent to 6.40 pesos while Philex Mining was up 2.3 percent at 17.87.
Wellington rose 0.44 percent, or 15.57 points, from Thursday to 3,519.33.
Retailer The Warehouse Group rose 1.4 percent to NZ$3.65, Air New Zealand was unchanged on NZ$1.11 and Telecom Corp slipped 0.5 percent to NZ$2.17.
Mumbai’s benchmark 30-share SENSEX fell 0.81 percent, or 156.06 points, from Thursday, its fifth straight day of losses to 19,135.96.
Sentiment has turned cautious ahead of the Reserve Bank of India’s monetary policy meeting on Tuesday, where it is widely expected to hike interest rates by 25 basis points.
State-owned oil explorer Oil and Natural Gas Corp fell 2.79 percent or 8.85 rupees to 308.9 while top property firm DLF fell 2.37 percent or 5.4 rupees to 222.9.
Advanced Micro Devices Inc (AMD) suffered its biggest stock decline in more than a month after the company unveiled new artificial intelligence (AI) chips, but did not provide hoped-for information on customers or financial performance. The stock slid 4 percent to US$164.18 on Thursday, the biggest single-day drop since Sept. 3. Shares of the company remain up 11 percent this year. AMD has emerged as the biggest contender to Nvidia Corp in the lucrative market of AI processors. The company’s latest chips would exceed some capabilities of its rival, AMD chief executive officer Lisa Su (蘇姿丰) said at an event hosted by
AVIATION: Despite production issues in the US, the Taoyuan-based airline expects to receive 24 passenger planes on schedule, while one freight plane is delayed The ongoing strike at Boeing Co has had only a minor impact on China Airlines Ltd (CAL, 中華航空), although the delivery of a new cargo jet might be postponed, CAL chairman Hsieh Su-chien (謝世謙) said on Saturday. The 24 Boeing 787-9 passenger aircraft on order would be delivered on schedule from next year to 2028, while one 777F freight aircraft would be delayed, Hsieh told reporters at a company event. Boeing, which announced a decision on Friday to cut 17,000 jobs — about one-tenth of its workforce — is facing a strike by 33,000 US west coast workers that has halted production
AI AIM: The chipmaker wants joint research and development programs with the Czech Republic, and the government is considering supporting investments in a Czech location Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is planning to build more plants in Europe with a focus on the market for artificial intelligence (AI) chips as the chipmaker expands its global footprint, a senior Taiwanese official said. “They have started construction of the first fab in Dresden; they are already planning the next few fabs in the future for different market sectors as well,” National Science and Technology Council (NSTC) Minister Wu Cheng-wen (吳誠文) told Bloomberg TV in an interview that aired yesterday. Wu did not specify a timeline for TSMC’s further expansion in Europe. TSMC in an e-mailed statement said it
TECH JUGGERNAUT: TSMC shares have more than doubled since ChatGPT’s launch in late 2022, as demand for cutting-edge artificial intelligence chips remains high Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday posted a better-than-expected 39 percent rise in quarterly revenue, assuaging concerns that artificial intelligence (AI) hardware spending is beginning to taper off. The main chipmaker for Nvidia Corp and Apple Inc reported third-quarter sales of NT$759.69 billion (US$23.6 billion), compared with the average analyst projection of NT$748 billion. For last month alone, TSMC reported revenue jumped 39.6 percent year-on-year to NT$251.87 billion. Taiwan’s largest company is to disclose its full third-quarter earnings on Thursday next week and update its outlook. Hsinchu-based TSMC produces the cutting-edge chips needed to train AI. The company now makes more
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