Asian stocks rose after the Bank of Japan (BOJ) unexpectedly boosted monetary stimulus and amid speculation that the country’s US$1.2 trillion Government Pension Investment Fund (GPIF) would increase holdings of equities.
The MSCI Asia Pacific Index (MXAP) added 1.3 percent to 142.15 as of 7:40pm in Hong Kong, with all 10 industry groups climbing. The gauge was heading for its biggest weekly advance since April last year, rising 3.3 percent this week.
Stocks began higher on Friday after the Nikkei Shimbun reported that the nation’s public pension fund, the world’s largest, would boost its allocation targets for local and foreign stocks to 25 percent each and after the US economy grew faster than forecast.
Shares extended gains after BOJ policymakers voted 5-4 to target a ￥80 trillion (US$726 billion) annual expansion in the central bank’s monetary base.
“Today you’re getting a double boost with talk of the GPIF increasing its shares allocation and the BOJ pumping more cash in at a faster rate,” Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd, said by telephone. “It had become increasingly apparent that what the BOJ was doing wasn’t enough and they needed to do more, and it’s always been a question of when they would do that. It’s an excellent outcome.”
Japan’s TOPIX surged 4.3 percent, the most since June last year. The Nikkei 225 Stock Average soared 4.8 percent to the highest level since November 2007.
In Taipei, the TAIEX gained 1 percent to close the week at 8,974.76.
On Friday, bargain hunters bought into large-cap stocks, buoyed by a proposal by Chinese Nationalist Party (KMT) lawmakers to water down a capital gains tax on stock sales by major market players that is supposed to take effect next year, dealers said.
Market bellwether Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) led the electronics rally, while old economy stocks, including financials, lent additional support to the broader market, they added.
TSMC rose 1.56 percent to NT$130.50, while rival United Microelectronics Corp (UMC, 聯電) gained 1.52 percent to NT$13.40 amid optimism over its shipments of 28-nanometer chips.
Cathay Financial Holding Co (國泰金控) gained 1.11 percent to NT$50, while food maker Uni-President Enterprises Corp (統一企業) rose 1.95 percent to NT$52.20.
Hong Kong’s Hang Seng Index advanced 1.3 percent and the Shanghai Composite gained 1.2 percent. Australia’s S&P/ASX 200 Index rose 0.9 percent. South Korea’s KOSPI and New Zealand’s NZX 50 Index each added 0.3 percent. India’s S&P BSE SENSEX rose 1.9 percent.
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