Asian stocks rose, joining a global equities rally, after the European Central Bank (ECB) signaled it might boost stimulus this year.
The MSCI Asia Pacific Index gained 1.8 percent to 136.27 at 4:08pm in Hong Kong. The MSCI All-Country World Index of developed and emerging-market shares surged to a two-month high on Thursday after ECB President Mario Draghi said policymakers would re-examine the degree of stimulus in December, adding that the quantitative-easing program would continue until beyond September next year if needed.
“Investors interpreted this as meaning a greatly increased chance of more policy support,” said Matthew Sherwood, head of investment strategy at Perpetual Ltd in Sydney, which manages about US$21 billion. “The good thing for central banks is that they have most investors so hooked on the stimulus drug that all they have to do is boost supply and the patient will be happy again.”
All 10 industry groups on the Asia Pacific index climbed, led by consumer staples and financial firms. The measure advanced 1.3 percent this week, a fourth weekly advance, bringing its rally to 10 percent this month. The index is down 1.2 percent this year.
Japan’s TOPIX climbed 2 percent as Nomura Holdings Co, the nation’s biggest brokerage, surged 3.7 percent. Cosmetics company Kose Corp added 4.3 percent in Tokyo after reporting preliminary profit that beat its forecast.
Australia’s S&P/ASX 200 gained 1.7 percent. Australia & New Zealand Banking Group Ltd (ANZ) joined its three main competitors in raising its benchmark variable mortgage rate as Australian lenders seek to cover the cost of holding more capital.
ANZ shares rose 1.1 percent.
Drillsearch Energy Ltd surged 26 percent in Sydney after Beach Energy Ltd agreed to pay A$384 million (US$277 million) in stock to acquire Drillsearch to increase its exposure to energy assets in Australia’s Cooper Basin.
Hong Kong’s Hang Seng Index gained 1.3 percent and the Hang Seng China Enterprises Index advanced 1.3 percent to the highest close since Aug. 18. The Shanghai Composite Index added 1.3 percent, capping a third weekly increase amid speculation the government would take more measures to bolster the economy before a top-level Chinese Communist Party meeting starts next week.
Plenum topics would include accelerating state-sector reforms and redoubling efforts to reduce pollution, according to Bloomberg economists Fielding Chen and Tom Orlik.
Further measures to push the “One Belt, One Road” strategy forward, personnel changes and comments on anti-corruption are among the key things to watch out for at the meeting, DBS Bank Hong Kong Ltd economist Nathan Chow said.
The TAIEX, South Korea’s KOSPI and New Zealand’s S&P/NZX 50 Index all added 0.8 percent. Singapore’s Straits Times advanced 1.1 percent and India’s S&P BSE Sensex rose 0.8 percent.
E-mini futures on the Standard & Poor’s 500 Index added 0.5 percent since the close of cash-market trading on Thursday. The underlying gauge advanced 1.7 percent on Thursday.
After the market closed, Google parent Alphabet Inc reported better-than-projected earnings amid stronger ad sales, while keeping expenses under control. It soared in extended trading, as did Amazon.com Inc after the Internet commerce company’s quarterly sales topped analysts’ estimates.
MediaTek Inc (聯發科), the world’s biggest smartphone chip supplier, yesterday said it plans to double investment in data center-related technologies, including advanced packaging and high-speed interconnect technologies, to broaden the new business’ customer and service portfolios. The chip designer is redirecting its resources to data centers, mainly designing application-specific integrated circuits (ASIC) with artificial intelligence (AI) capabilities for cloud service providers. The data center business is forecast to lead growth in the next three years and become the company’s second-biggest revenue source, replacing chips used in smart devices, MediaTek president Joe Chen (陳冠州) told a media event in Taipei. “Three or four years
Until US President Donald Trump’s return a year ago, when the EU talked about cutting economic dependency on foreign powers — it was understood to mean China, but now Brussels has US tech in its sights. As Trump ramps up his threats — from strong-arming Europe on trade to pushing to seize Greenland — concern has grown that the unpredictable leader could, should he so wish, plunge the bloc into digital darkness. Since Trump’s Greenland climbdown, top officials have stepped up warnings that the EU is dangerously exposed to geopolitical shocks and must work toward strategic independence — in defense, energy and
Motorists ride past a mural along a street in Varanasi, India, yesterday.
For the second year in a row, a Brazilian movie has wowed international audiences and critics, securing multiple Oscar nominations and drawing fresh interest in the Latin American giant’s film industry. Experts say the success of The Secret Agent, which has won four Oscar nominations, a year after I Am Still Here won Brazil its first Oscar, is no fluke, with a bit of a push from the country’s political climate. “This is neither a coincidence nor a miracle. It is the result of a lot of work, consistent policies, and, of course, talent,” Ilda Santiago, director of the Rio International Film
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