Asian stocks punched to a seven-month peak yesterday, fueled by confidence the global economy is recovering faster than expected and a further jump in Taiwanese shares on hopes for an influx of Chinese investment.
Taiwan’s benchmark TAIEX index soared 5.6 percent, taking gains to 12.8 percent in just two days as investors see a wide-reaching deal coming later in the year that would spur heavy Chinese investment in the country, especially in financial firms.
The surge in Taiwan added to the broad gains across Asia as evidence has mounted that global trade is starting to pick up, highlighted by brokerage CLSA’s gauge of Chinese manufacturing activity rebounding to a nine-month high last month.
The TAIEX opened up 4.89 percent, extending momentum from Thursday’s 6.74 percent rally after the government announced it would allow Chinese institutional investors to buy stocks listed in Taiwan, dealers said.
“Judging from the strong showing of large cap stocks, I suspect the buying largely came from foreign institutional investors,” Concord Securities (康和證券) analyst Allen Lin said.
Many of those foreign investors had not jumped on the bandwagon on Thursday as the market has a daily upside ceiling of 7 percent.
The financial sector led the gains on expectations that Taiwan and China would soon set up a mechanism to deal with the increasing exchanges between banks from the two sides, dealers said.
“Foreign institutional investors are still building up their positions, in particular, in financial stocks. Their buying is likely to continue,” Lin said.
Lin said investors have expected a strong Chinese economy would help Taiwan ride out the global economic downturn.
“It is possible for the index to challenge the key 7,000 point mark during the month,” he said.
Investors in the region have largely brushed aside worries that the global H1N1 flu outbreak could turn into a serious pandemic.
“On the other hand, we have China’s PMI data, which seems to signal continued recovery for the economy, yet another reason to stay bullish,” said Castor Pang (彭偉新), strategist with Sun Hung Kai Financial (新鴻基金融集團) in Hong Kong.
The Australian dollar, seen as the bellwether for risk-taking, struck a seven-month peak.
South Korean exports and industrial production improved more quickly than expected, suggesting that regional exporters must step up activity after slashing inventories.
DETERRENCE: With 1,000 indigenous Hsiung Feng II and III missiles and 400 Harpoon missiles, the nation would boast the highest anti-ship missile density in the world With Taiwan wrapping up mass production of Hsiung Feng II and III missiles by December and an influx of Harpoon missiles from the US, Taiwan would have the highest density of anti-ship missiles in the world, a source said yesterday. Taiwan is to wrap up mass production of the indigenous anti-ship missiles by the end of year, as the Chungshan Institute of Science and Technology has been meeting production targets ahead of schedule, a defense official with knowledge of the matter said. Combined with the 400 Harpoon anti-ship missiles Taiwan expects to receive from the US by 2028, the nation would have
North Korea yesterday fired about 10 ballistic missiles to the sea toward Japan, the South Korean Joint Chiefs of Staff (JCS) said, days after Pyongyang warned of “terrible consequences” over ongoing South Korea-US military drills. Pyongyang recently dashed hopes of a diplomatic thaw with Seoul, Washington’s security ally, describing its latest peace efforts as a “clumsy, deceptive farce.” Seoul’s military detected “around 10 ballistic missiles launched from the Sunan area in North Korea toward the East Sea [Sea of Japan] at around 1:20pm,” JCS said in a statement, referring to South Korea’s name for the body of water. The missiles
‘UNWAVERING FRIENDSHIP’: A representative of a Japanese group that co-organized a memorial, said he hopes Japanese never forget Taiwan’s kindness President William Lai (賴清德) yesterday marked the 15th anniversary of the Tohoku earthquake and tsunami, urging continued cooperation between Taiwan and Japan on disaster prevention and humanitarian assistance. Lai wrote on social media that Taiwan and Japan have always helped each other in the aftermath of major disasters. The magnitude 9 earthquake struck northeastern Japan on March 11, 2011, triggering a massive tsunami that claimed more than 19,000 lives, according to data from Japanese authorities. Following the disaster, Taiwan donated more than US$240 million in aid, making it one of the largest contributors of financial assistance to Japan. In addition to cash donations and
CLOSER TO CHINA: The upgraded Type-12 missile has a range of about 1,000km, compared with the original model’s range of 200km, and can reach mainland China Japan is preparing to deploy its first batch of domestically developed long-range missiles, with their launchers arriving at an army camp yesterday, as the country accelerates its offensive capability in response to rising challenges in the region. The upgraded Type-12 land-to-ship missiles are to be deployed at Camp Kengun in Japan’s southwestern prefecture of Kumamoto by the end of this month, completing the process of deployment, Japanese Chief Cabinet Secretary Minoru Kihara said without giving details. Army vehicles carrying the launchers and other equipment arrived past midnight in a highly secretive mission criticized by residents. Dozens of people stood outside of the
RSS