Sun, Jun 22, 2014 page15

• Materials, tech push Asian stocks from six-year high

  • AGENCIES
  • • 
    • 
    • 

  Asian stocks fell from a six-year high this week as materials and technology companies dragged the regional benchmark index lower.

  BHP Billiton Ltd, the world’s biggest mining company, slid 1.3 percent in Sydney, while in South Korea, Samsung Electronics Co paced declines among technology firms as the KOSPI posted its biggest drop in two months and Samsung Life Insurance Co lost 3.4 percent after an investor sold 5 million shares.

  In Taipei, HTC Corp (宏達電) climbed 2.3 percent after chief executive officer Peter Chou (周永明) told shareholders he is seeing improvement from the second quarter.

  The TAIEX slipped 0.46 percent, or 43.02 points, to 9,273.79 on Friday, compared with 9,196.39 on June 13, as Taiwan Semiconductor Manufacturing Co (台積電) fell 1.19 percent to NT$124.5 and Hon Hai Precision Industry Co (鴻海) rose 0.43 percent to NT$94.3.

  The MSCI Asia Pacific Index slid 0.3 percent to 144.93 as of 4:03pm on Friday in Hong Kong to advanced 0.4 percent over the week in its sixth consecutive weekly gain, the longest stretch of increases since August last year.

  The measure on Thursday reached its highest level since June 2008 and traded at 13.4 times estimated earnings at the week’s last close, compared with 16.6 for the Standard & Poor’s 500 Index and 15.6 for the STOXX Europe 600 Index, according to data compiled by Bloomberg.

  The gains came after US Federal Reserve Chair Janet Yellen said she expects US interest rates to stay near zero for a “considerable time” after stimulatory bond-buying ends.

  “Investors need to be asking whether the Fed and Yellen will prove to be as stubbornly dovish on monetary policy as much of the commentary now assumes,” CMC Markets Ltd chief strategist Ric Spooner said.

  “Market thinking on this may be tested if US economic growth and inflation rates continue to improve in coming months.” he added.

  In Tokyo, the TOPIX capped a fifth weekly advance on Friday to post its longest stretch of gains in almost a year. The measure closed little changed in the session, with developers and carmakers rising as oil and producers fell.

  The Japanese index slipped less than 0.1 percent to 1,268.92 at the close and rose 2 percent on the week, while the Nikkei 225 Stock Average slid 0.1 percent to 15,349.42 on Friday.

  “The outlook for the global economy is looking brighter, led by the US, and it’s becoming more obvious that Japanese shares need to catch up,” said Hiroichi Nishi, an equities manager at SMBC Nikko Securities Inc.

  Still, there are signs that “Japanese equities are overheating in the short term,” Nishi added.

  Even after posting a 10 percent rebound from its May 21 low, the TOPIX is still the worst performer this year among 24 developed markets tracked by Bloomberg. The measure capped a world-beating rally last year as the Bank of Japan pressed ahead with record monetary easing.

  Australia’s S&P/ASX 200 Index lost 0.9 percent on Friday, with BHP Billiton declining 1.3 percent to A$35.95, while New Zealand’s NZX 50 Index slid 0.9 percent.

  In China, the Shanghai Composite Index reversed losses on Friday to end up 0.2 percent at 2,026.67 points, trimming its weekly drop to 2.1 percent, but still posting its worst showing since April 25.

  In Seoul, the KOSPI fell 1.2 percent as Samsung Electronics retreated 1.7 percent, while Hong Kong’s Hang Seng Index climbed 0.1 percent, Singapore’s Straits Times Index lost 0.1 percent and India’s BSE S&P Sensex Index advanced 0.1 percent.

  In other markets on Friday:

  Wellington fell 0.91 percent, or 47.12 points, from Thursday to end on 5,145.03.

  Manila closed 0.47 percent higher, adding 31.57 points to reach 6,730.96.
• Most Popular

  • 1

    Dozens of Taiwanese missing in China

  • 2

    Chinese who disrupted HK event deported

  • 3

    Formosan black bear punching Winnie the Pooh badge a hit at Japan festival

  • 4

    PRC could not be ‘motherland,’ William Lai says

  • 5

    Donovan’s Deep Dives: China is already at war with Taiwan and countries across the globe