Asian shares rose this week, driving the regional benchmark index to its sixth week of gains, as global manufacturing reports beat forecasts and central banks vowed to maintain stimulus.
Hitachi Metals Ltd soared 20 percent after forecasting that its net income will more than double, while Genting Malaysia Bhd, the casino operator controlled by billionaire Lim Kok Thay, jumped 13 percent. Fanuc Corp gained 9.5 percent after the Japanese robotics maker’s orders beat estimates and AIA Group Ltd, the second-largest Asia-based insurer by market value, advanced 3.6 percent after reporting net income climbed to a record US$1.93 billion in the six months to May. Samsung Electronics Co, the world’s biggest smartphone maker, fell 1.3 percent as profit missed expectations.
The MSCI Asia Pacific Index edged up 0.1 percent this week to 135.59, climbing for the sixth straight week with more than two stocks gaining for every one that fell. Six of the 10 industry groups on the measure rose on the week. Japan’s market drove the advance as the benchmark Nikkei 225 Stock Average posted a 2.4 percent increase, its biggest jump in a month.
“As the yen continues to weaken, profit at Japanese exporters will improve. That should drive earnings upgrades, boosting the share market,” said Daphne Roth, Singapore-based head of Asia equity research at ABN Amro Private Bank. “The market will remain volatile as investors await Japan’s economic reforms.”
The TAIEX fell 0.6 percent to finish at 8,099.88, compared with 8,149.40 on July 26. Hon Hai Precision Industry Co (鴻海精密) rose 0.39 percent to NT$76.9 on Friday, while smartphone maker HTC Corp (宏達電) fell 3.7 percent to NT$143.0.
Elsewhere, Japan’s TOPIX gained 2.5 percent to 1,196.17 for the week, as the yen weakened against the US dollar, boosting the earnings outlook for the country’s exporters. Of the 183 companies on the measure that have posted quarterly results and for which Bloomberg has estimates, 58 percent beat projections.
Hong Kong’s Hang Seng Index climbed 1 percent after China’s government moved to alleviate a cash crunch as economic growth slows. The nation’s central bank injected funds into markets through reverse-repurchase agreements for the first time since February.
South Korea’s KOSPI added 0.7 percent, while Australia’s S&P/ASX 200 Index gained 1.5 percent and New Zealand’s NZX 50 Index was little changed for the week.
The MSCI Asia Pacific Index advanced 1.3 percent last month after China pledged to do more to support a transition from reliance on exports to domestic demand in the world’s second- largest economy. Shares on the gauge traded at 13.2 times estimated earnings as of Friday, compared with multiples of 15.5 for the Standard & Poor’s 500 Index and 13.8 for the STOXX Europe 600 Index.
The index reversed declines from earlier in the week after the US Federal Reserve’s Federal Open Market Committee, which has floated the prospect of reductions to its US$85 billion of monthly bond purchases should economic risks abate, said on Wednesday that while growth should pick up, persistently low inflation may hamper the recovery.
Factory output from the US to China and Europe expanded last month, reports showed on Thursday, while US jobless claims fell to a five-year low. The data came as European Central Bank President Mario Draghi said interest rates will probably remain low for an extended period and after the Fed retained its US$85 billion-a-month bond-buying program.
China’s manufacturing gauge unexpectedly strengthened in last month, data showed on Thursday. Manufacturing growth in the UK accelerated last month, while a factory gauge for the eurozone resumed growth after two years of contraction, separate reports released showed on Thursday.
In other markets on Friday:
Wellington added 0.82 percent, or 37.12 points, from Thursday to close at 4,582.89 on Friday.
Manila closed 1.91 percent lower, shedding 127.49 points to 6,533.95.
Mumbai fell 0.79 percent or 153.17 points to 19,162.02 points.
Meta Platforms Inc offered US$100 million bonuses to OpenAI employees in an unsuccessful bid to poach the ChatGPT maker’s talent and strengthen its own generative artificial intelligence (AI) teams, OpenAI CEO Sam Altman has said. Facebook’s parent company — a competitor of OpenAI — also offered “giant” annual salaries exceeding US$100 million to OpenAI staffers, Altman said in an interview on the Uncapped with Jack Altman podcast released on Tuesday. “It is crazy,” Sam Altman told his brother Jack in the interview. “I’m really happy that at least so far none of our best people have decided to take them
BYPASSING CHINA TARIFFS: In the first five months of this year, Foxconn sent US$4.4bn of iPhones to the US from India, compared with US$3.7bn in the whole of last year Nearly all the iPhones exported by Foxconn Technology Group (富士康科技集團) from India went to the US between March and last month, customs data showed, far above last year’s average of 50 percent and a clear sign of Apple Inc’s efforts to bypass high US tariffs imposed on China. The numbers, being reported by Reuters for the first time, show that Apple has realigned its India exports to almost exclusively serve the US market, when previously the devices were more widely distributed to nations including the Netherlands and the Czech Republic. During March to last month, Foxconn, known as Hon Hai Precision Industry
PLANS: MSI is also planning to upgrade its service center in the Netherlands Micro-Star International Co (MSI, 微星) yesterday said it plans to set up a server assembly line at its Poland service center this year at the earliest. The computer and peripherals manufacturer expects that the new server assembly line would shorten transportation times in shipments to European countries, a company spokesperson told the Taipei Times by telephone. MSI manufactures motherboards, graphics cards, notebook computers, servers, optical storage devices and communication devices. The company operates plants in Taiwan and China, and runs a global network of service centers. The company is also considering upgrading its service center in the Netherlands into a
Taiwan’s property market is entering a freeze, with mortgage activity across the nation’s six largest cities plummeting in the first quarter, H&B Realty Co (住商不動產) said yesterday, citing mounting pressure on housing demand amid tighter lending rules and regulatory curbs. Mortgage applications in Taipei, New Taipei City, Taoyuan, Taichung, Tainan and Kaohsiung totaled 28,078 from January to March, a sharp 36.3 percent decline from 44,082 in the same period last year, the nation’s largest real-estate brokerage by franchise said, citing data from the Joint Credit Information Center (JCIC, 聯徵中心). “The simultaneous decline across all six cities reflects just how drastically the market
RSS