Asian stocks rose for a fourth week in five, driving the MSCI Asia-Pacific Index to the highest level in eight months, as US consumer confidence and Japanese production reports spurred hopes for a global economic recovery.
Toyota Motor Corp, which gets 31 percent of its revenue in North America, gained 6.7 percent in Tokyo. PetroChina Co, the nation’s biggest oil producer, advanced 6 percent as crude oil prices surged for a second week. Hang Lung Properties Ltd, Hong Kong’s fifth-biggest builder, surged 16 percent after Hong Kong’s government announced an additional stimulus package.
“Signs of a turnaround are coming through,” said Matt Riordan, who helps manage about US$3.1 billion at Paradice Investment Management in Sydney. “People who were initially dismissing this as a bear-market rally are concerned it might be sustainable.”
The MSCI Asia-Pacific Index gained 2.7 percent to 102.04, its highest level since Oct. 3. The gauge, which has rallied 45 percent from a five-year low on March 9, briefly pared gains this week after North Korea threatened a military strike in response to South Korea joining a program to seize weapons shipments.
South Korea’s KOSPI Index sank 0.6 percent as North Korea tested a nuclear device on May 25 and launched six short-range missiles in defiance of international condemnation.
“The North Korean missile test is providing investors a reality check,” said Roger Groebli, Singapore-based head of market analysis at LGT Capital Management, which oversees about US$20 billion. “Valuations in Asia are a little rich.”
Taiwanese share prices are expected to challenge the key 7,000-point level next week on continued inflows of foreign funds, dealers said.
Foreign institutional investors are likely to pick up financial heavyweights as their holdings remain relatively low and they need further short covering, they said.
However, as the bellwether electronic sector is scheduled to report sales data for this month, cautious sentiment toward high-tech stocks may cast a shadow over the broader market, the dealers added.
While the ample liquidity is expected to push the index through 7,000 or even higher next week, stiff technical resistance is likely to follow and drag it to around 6,600, they said.
In the holiday-shortened week to Wednesday, the weighted index rose 153.15 points, or 2.27 percent, to 6,890.44 after a 3.82 percent increase a week earlier.
Average daily turnover stood at NT$204.64 billion (US$6.28 billion), compared with NT$189.36 billion a week ago.
The market was closed on Thursday and Friday for the prolonged Dragon Boat Festival holiday.
Other regional markets on Friday:
HONG KONG: Up 1.60 percent. The Hang Seng Index rose 285.73 points at 18,171.00, its highest close since early October. Dealers said profit-taking pressure was strong as the local benchmark index has risen 17 percent since the start of May.
SYDNEY: Up 1.7 percent. The S&P/ASX 200 rose 62.2 points to 3,817.9. The market was “remarkably strong” and buoyed by gains in Commonwealth Bank, ANZ and Westpac after a positive lead from Wall Street, Ord Minnett private client adviser Jon Hancock said.
SEOUL: UP 0.27 percent. The KOSPI ended up 3.72 points at 1,395.89. Foreign buying outweighed concerns over instability on the Korean peninsula.
KUALA LUMPUR: Up 0.28 percent. The Kuala Lumpur Composite Index added 2.87 points at 1,044.11.
MANILA: Up 1.48 percent. The composite index rose 34.94 points to 2,389.31.
MUMBAI: Up 2.3 percent. The 30-share SENSEX rose 329.24 points to 14,625.25, a near nine-month high. Sentiment was lifted after the government said the economy grew by a better-than-expected 6.7 percent in the past fiscal year, dealers said.
Taiwanese actress Barbie Hsu (徐熙媛) has died of pneumonia at the age of 48 while on a trip to Japan, where she contracted influenza during the Lunar New Year holiday, her sister confirmed today through an agent. "Our whole family came to Japan for a trip, and my dearest and most kindhearted sister Barbie Hsu died of influenza-induced pneumonia and unfortunately left us," Hsu's sister and talk show hostess Dee Hsu (徐熙娣) said. "I was grateful to be her sister in this life and that we got to care for and spend time with each other. I will always be grateful to
REMINDER: Of the 6.78 million doses of flu vaccine Taiwan purchased for this flu season, about 200,000 are still available, an official said, following Big S’ death As news broke of the death of Taiwanese actress and singer Barbie Hsu (徐熙媛), also known as Big S (大S), from severe flu complications, the Centers for Disease Control (CDC) and doctors yesterday urged people at high risk to get vaccinated and be alert to signs of severe illness. Hsu’s family yesterday confirmed that the actress died on a family holiday in Japan due to pneumonia during the Lunar New Year holiday. CDC Deputy Director-General Tseng Shu-hui (曾淑慧) told an impromptu news conference that hospital visits for flu-like illnesses from Jan. 19 to Jan. 25 reached 162,352 — the highest
COMBINING FORCES: The 66th Marine Brigade would support the 202nd Military Police Command in its defense of Taipei against ‘decapitation strikes,’ a source said The Marine Corps has deployed more than 100 soldiers and officers of the 66th Marine Brigade to Taipei International Airport (Songshan airport) as part of an effort to bolster defenses around the capital, a source with knowledge of the matter said yesterday. Two weeks ago, a military source said that the Ministry of National Defense ordered the Marine Corps to increase soldier deployments in the Taipei area. The 66th Marine Brigade has been tasked with protecting key areas in Taipei, with the 202nd Military Police Command also continuing to defend the capital. That came after a 2017 decision by the ministry to station
PETITIONS: A Democratic Progressive Party official quoted President William Lai as saying that civil society groups are organizing the recall drives at the grassroots level Some civil society groups yesterday announced that they have collected enough signatures to pass the first-stage threshold to initiate a recall vote against Chinese Nationalist Party (KMT) legislators in 18 constituencies nationwide, saying that they would submit the signatures to the Central Election Commission (CEC) today. They also said that they expected to pass the threshold in eight more constituencies in the coming days, meaning the number of KMT legislators facing a recall vote could reach 26. The groups set up stations to collect signatures at local marketplaces and busy commercial districts. The legislators their petition drives target include Fu