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.
MANAGING RISKS: Taiwan has secured LNG sufficient to cover 95 percent of electricity demand for next month, UBS said, describing the government’s approach as proactive UBS Group AG has raised its forecast for Taiwan’s economic growth this year to 8 percent, up from 6.9 percent previously, and said expansion could reach as high as 8.6 percent if external energy shocks are avoided. The upgrade reflects a stronger-than-expected first-quarter performance and sustained momentum in artificial intelligence (AI)-driven exports, which UBS said are providing a firm foundation for growth despite geopolitical and energy risks. Taiwan’s GDP expanded 13.69 percent year-on-year in the first quarter, the fastest growth since the second quarter of 1987, the Directorate-General of Budget, Accounting and Statistics (DGBAS) reported on Thursday. On a seasonally
The Fair Trade Commission’s (FTC) ongoing review of Grab Holdings Ltd’s US$600 million acquisition of Foodpanda Taiwan’s operations, announced on March 23, has taken on fresh urgency as industry experts warn that the transaction could embed significant Chinese cybersecurity vulnerabilities into Taiwan’s digital infrastructure through Grab’s deep ties to autonomous-driving firm WeRide (文遠知行). Less than 16 months after the FTC blocked Uber Eats’ direct attempt to acquire Foodpanda Taiwan — citing potential combined market shares of 80 to 90 percent — the emergence of Grab as the buyer has prompted questions about whether the same competitive harm is simply being rerouted
The list of Asian stocks that benefit from business partnership with Nvidia Corp is getting longer, as the region further integrates into the artificial intelligence (AI) chip giant’s business ecosystem. Just in the past week, South Korea’s LG Electronics Inc, Taiwan’s Nanya Technology Corp (南亞科技), as well as China’s Huizhou Desay SV Automotive Co (德賽西威) and Pateo Connect Technology Shanghai Corp (博泰車聯) have become the latest to rally on news of tie-ups, supply-chain participation or product collaboration with the US chip designer. Asian suppliers account for about 90 percent of Nvidia’s production costs, up from about 65 percent last year, data compiled
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is seeking government approval for an advanced wafer fab at the Longtan (龍潭) campus of Hsinchu Science Park (新竹科學園區), the park's bureau said today. In a written reply, the Hsinchu Science Park Bureau said it would submit a proposal for the third phase of the Longtan Science Park (龍潭科學園區), including plans for a TSMC fab, later this month to the National Science and Technology Council for review. The contract chipmaker previously bid to build a fab using a process more advanced than its current 2-nanometer (nm) technology at the Longtan Campus, but the plan was shelved
RSS