Asian shares on Friday rose from a one-week low as the US dollar strengthened for a sixth day, its longest winning streak in two months.
The TAIEX fell 0.44 percent on Friday to close at 8,704.97, down from 8,734.5 on Friday last week.
The MSCI Asia Pacific Index advanced 0.1 percent as of 9:20am in Tokyo, trimming this week’s loss to 1 percent.
Japan’s TOPIX climbed 0.3 percent, while South Korea’s KOSPI declined 0.1 percent.
The Bloomberg Dollar Spot Index gained 1.2 percent this week, its strongest rally in four months, while the Bloomberg Commodity Index slid 1.9 percent.
After upsetting markets in August last year and again early last month, the prospect of higher US interest rates is returning to the spotlight, as regional US Federal Reserve presidents indicate support for higher rates as soon as economic data warrant.
While the Fed’s recent halving of its projection for this year’s increases spurred stock gains and depressed the US dollar, the more bullish tone from officials is now supporting a surge in the greenback that is hurting the mostly US dollar-denominated commodity market.
“The market is seeing a little bit of a pause in momentum,” said Kevin Caron, a Florham Park, New Jersey-based market strategist and portfolio manager, who helps oversee US$180 billion at Stifel Nicolaus & Co.
“Now we are looking ahead at what drives us beyond what central bank actions have been able to curry so far. We do not really have a catalyst right now,” Caron said.
Revised GDP data confirmed that South Korea’s economic growth rate slipped from a five-year high in the fourth quarter as a surge in property transactions faded in the final three months of last year.
Inflation data in Japan showed consumer prices were unchanged for a second month last month, while Thai trade figures are forecast to show exports dropped for a 14th straight month.
Asia-Pacific markets, including Australia, Hong Kong, India and Singapore, were shut for holidays. Most of Europe and North America was also closed.
Additional reporting by staff writer
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
Shin Kong Financial Holding Co (新光金控) yesterday said that its insurance unit would adjust its investment portfolio after being banned from buying new stocks a day earlier by the Financial Supervisory Commission (FSC). “We will research what we can do based on the commission’s specific instructions after we receive the regulator’s formal documents,” Shin Kong Financial spokesman Sunny Hsu (徐順鋆) told the Taipei Times by telephone. The commission on Tuesday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$941,722) for reckless investment, and demanded that the insurer reduce its overseas investment ratio from 43 percent to 39 percent. The fine would affect
Taipei Times: When do you think the hospitality industry can return to how it was before the COVID-19 pandemic? How does Formosa International Hotels Group (FIH, 晶華酒店集團) fare this quarter and beyond? FIH chairman Steve Pan (潘思亮): The virus outbreak will have a serious impact on business travel, driven mainly by meetings, incentive travel, conferences and exhibitions over the past three decades. For the past six months, many businesspeople have grown used to exchanging information on the Internet, where more people can participate. The trend might sustain for three to five years until people are vaccinated and it is safe to
EQUITIES TAIEX moves sharply higher The TAIEX moved sharply higher yesterday as buying focused on Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) after a strong showing by its American Depositary Receipts overnight. However, the gains were capped after the benchmark index breached 13,000 points and ran into technical hurdles, prompting investors to turn cautious, dealers said. At the end of the session, the TAIEX was up 131.11 points, or 1.02 percent, at 12,976.76. Turnover was NT$206.328 billion (US$7.04 billion), with foreign institutional investors buying a net NT$18.47 billion in shares, Taiwan Stock Exchange data showed. TSMC rose 2.92 percent to close at NT$458.