Asian stocks on Friday fell for the first time in six days, with the regional benchmark gauge paring the biggest weekly advance since July, as Japanese exporters retreated and a rally in Hong Kong equities lost steam.
The MSCI Asia Pacific Index dropped 0.2 percent to 142.00 as of 4:10pm in Hong Kong, halting a five-day increase. The measure has advanced 3.6 percent this week.
The TOPIX lost 0.2 percent as Japanese markets resumed trading following a holiday on Thursday and the yen firmed against the US dollar after the Bank of Japan did not move deeper into negative interest-rate territory.
“There’s a very bullish case for equities considering that the [US Federal Reserve] is now expecting only two rate hikes in 2017,” said James Woods, a strategist at Rivkin Securities in Sydney. “There are uncertainties that could shake up some volatility in the market, including the US elections in November, but given where valuations are, I’d be a little cautious.”
Shares on the MSCI Asia Pacific Index traded at 13.8 times projected earnings for the next 12 months, near the highest level since June last year, according to data compiled by Bloomberg.
Shares in Taiwan closed higher on Friday on back of the momentum from previous sessions, as the bellwether electronics sector continued trending up amid optimism for shipments in the current peak season for the high-technology market, dealers said.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the most weighted stock on the local market, led the gains in the electronic sector and pushed the broader market higher throughout the session on the back of sound fundamentals, dealers said.
In Taipei, the TAIEX ended up 49.36 points, or 0.53 percent, at the day’s high of 9,284.62, off an early low of 9,228.66.
Turnover totaled NT$64.478 billion (US$2.05 billion).
“The late buying increased turnover by about NT$6 billion, largely focusing on high-tech stocks, in particular TSMC,” Hua Nan Securities (華南永昌證券) analyst Kevin Su (蘇俊宏) said. “Judging from the gains, I think that foreign institutional investors stood on the buy side again, as they still hold a large chunk of long position contracts in the futures market.”
Foreign institutional investors on Friday bought a net NT$4.77 billion worth of shares on the main board, according to the TWSE.
Su said foreign institutional investors held about 74,000 more long position contracts than short ones in the local futures market as of Thursday.
The electronics sector closed up 0.66 percent after TSMC rose 1.08 percent to close at a record high of NT$187.5.
The chipmaker, which supplies the A10 processor for Apple Inc’s latest iPhones, also saw its market capitalization rise to a record NT$4.86 trillion.
Among other Apple “concept stocks,” smartphone camera lens supplier Largan Precision Co (大立光) gained 1.46 percent to close at NT$3,830 and metal casing producer Catcher Technology Co (可成) gained 2.1 percent to close at NT$267.
The financial sector, which also benefited from the late buying, ended up 0.42 percent. E.Sun Financial Holding Co (玉山金控) rose 1.4 percent to close at NT$18.05 and Mega Financial Holding Co (兆豐金控) ended up 0.9 percent at NT$22.5.
The local main board gained 382.32 points this week, closing 4.29 percent higher.
The Hang Seng China Enterprises Index of Chinese companies traded in Hong Kong sank 1 percent, paring the steepest weekly increase in two weeks, as banks and brokerages declined.
The Hang Seng Index and Shanghai Composite Index dropped at least 0.3 percent.
Thailand’s SET Index retreated 1.1 percent, trimming a second weekly advance. The Philippine Stock Exchange Index fell 0.5 percent, while the Jakarta Composite Index slipped 0.3 percent.
Australia’s S&P/ASX 200 Index climbed 1.1 percent to the highest close since Aug. 31 as telephone companies and healthcare shares advanced.
South Korea’s KOSPI added 0.2 percent and Singapore’s Straits Times Index added 0.3 percent.
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