Asian stocks rose this week, with the benchmark index gaining for the first time in a month, on optimism policymakers in the US and China would bolster growth in the world’s two biggest economies. Japanese shares jumped as the yen weakened.
Shandong Weigao Group Medical Polymer Co., a Chinese medical products maker, soared 34 percent in Hong Kong this week after reporting higher sales, leading gains on the MSCI Asia Pacific Index.
Nissan Motor Co, which gets about 80 percent of revenue outside Japan, rose 4.6 percent as the yen declined to a two-month low.
James Hardie Industries, a building-materials supplier that makes more than half of its sales in the US, jumped 13 percent in Sydney after reporting better-than-expected operating profit.
The MSCI Asia Pacific Index rose 1.9 percent to 141.57 this week, the biggest weekly advance since the five days ended Sept. 20. China may release details of its economic policy plans as early as next week, according to Morgan Stanley.
US Federal Reserve Vice Chair Janet Yellen, the nominee for Fed chairman, signaled during her senate confirmation hearing on Thursday that she would not consider ending the Fed’s bond-buying scheme as long as growth remained tepid and unemployment elevated.
“The statement made by Yellen is definitely favorable for equity markets,” said Khiem Do, Hong Kong-based head of Asian multi-asset strategy at Baring Asset Management. “Fourth quarter is a very favorable period for equity markets around the world. It looks like global investors are back in Japan again.”
Japan’s Nikkei 225 Stock Average surged 7.7 percent this week, climbing above 15,000 for the first time since May and posting the steepest weekly rally in almost four years. China’s Shanghai Composite advanced 1.4 percent.
Asia’s regional equities gauge slumped on Wednesday amid disappointment in the lack of details released at the conclusion of China’s four-day leadership meeting.
Shares then reversed course, with gains accelerating on Friday as the Chinese Communist Party’s People’s Daily newspaper reported that a 20,000-word document approved at the plenum lays out 15 areas of reform and 60 “concrete tasks.”
Policy changes may be announced over the next seven to 10 days, Jonathan Garner, the Hong Kong-based chief Asia and emerging-market strategist at Morgan Stanley, said on Thursday.
Chinese President Xi Jinping (習近平) said corruption remains a problem and urged more courage and stronger measures to push forward reforms, according to a transcript of his speech at the plenum published on Friday by Xinhua News Agency.
Taiwanese shares bucked the regional trend, sliding 0.6 percent this week to 8,177.12.
Yellen’s testimony lifted the TAIEX on Friday, led by bargain-hunting in old economy stocks, particularly in cement, petrochemicals and textiles, but electronics stocks consolidated, capping the gains on the broader market, dealers said.
Singapore’s Straits Times Index rose 0.8 percent, while Australia’s S&P/ASX 200 Index was little changed.
Hong Kong’s Hang Seng Index advanced 1.3 percent this week, while the Hang Seng China Enterprises Index, a gauge of mainland stocks also known as the H-share index, jumped 3 percent.
In other markets on Friday:
Manila rose 0.29 percent, or 18.52 points, from Thursday to 6,346.40.
Wellington fell 0.27 percent, or 13.1 points, from Thursday to 4,914.08.
Mumbai was closed for a public holiday.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion