Asian stocks advanced for a second week, sending the MSCI Asia-Pacific Index to its biggest gain since May on speculation a recovery in the global economy will boost corporate earnings.
James Hardie Industries NV, the biggest seller of home siding in the US, surged 24 percent in Sydney after reports showed US homes prices climbed. Chartered Semiconductor Manufacturing Ltd (特許)the world’s third-largest maker of customized chips, gained 6.7 percent in Singapore after reporting a lower-than-forecast loss in the second quarter. Jiangxi Copper Co (江西銅業), China’s largest producer of the metal, advanced 16 percent in Shanghai after copper prices advanced.
“The data is showing that things are past their worst,” said Tim Schroeders, who helps manage US$1 billion at Pengana Capital Ltd in Melbourne. “If we’ve seen a bottom, and things continue to improve in the second half, it just may be enough to buoy earnings.”
The MSCI Asia-Pacific Index climbed 4.5 percent to 108.00 this week, the biggest advance since the period ended May 8. The gauge has rallied 53 percent from a five-year low on March 9 amid optimism stimulus policies around the world will revive the global economy. The MSCI World Index gained 4.6 percent this week.
The MSCI Asia-Pacific Index has risen this week as US companies including Apple Inc reported better-than-expected results. South Korea said on Friday economic growth accelerated in the second quarter, while US data released on Thursday showed sales of existing homes rose 3.6 percent last month.
The data provided further evidence that the global economic recovery is on track. Last week, China and Singapore also reported economic growth accelerated in the second quarter.
Taiwanese shares are expected to move around the 7,000-point level in the week ahead, which will provide stiff resistance after recent significant gains, dealers said.
As the market repeatedly failed to leap the psychological hurdle this week, many investors have turned cautious in the near term, they said. Even if the market does pass 7,000, profit-taking is expected to immediately follow, while technical support may be seen at around 6,800.
With electronics firms, including Taiwan Semiconductor Manufacturing Co (台積電) reporting second-quarter results next week, the market is likely to be quiet before fresh hints on industrial fundamentals, they added.
For the week to July 24, the weighted index rose 122.29 points, or 1.78 percent, to 6,973.28 after a 1.2 percent increase a week earlier.
Average daily turnover stood at NT$143.43 billion (US$4.37 billion), compared with NT$128.01 billion a week ago.
“The market is running out of steam after a recent strong showing. Consolidation is expected to dictate market movements over the next few sessions,” Taiwan International Securities (金鼎證券) analyst Arch Shih (施博元) said.
Other markets on Friday:
TOKYO: Up 1.55 percent. The Nikkei-225 climbed 151.61 points to 9,944.55. The index is at its highest in more than three weeks. Investors stopped short of pushing the Nikkei past 10,000 as concerns emerged that Wall Street may see profit-taking.
HONG KONG: Up 0.83 percent. The Hang Seng Index closed up 165.09 points at 19,982.79. The market had briefly gone as high as 20,063.39 soon after the opening due to hopes for the US economy.
SYDNEY: Up 0.63 percent. The S&P/ASX 200 added 25.7 points to reach 4,089.8.
SHANGHAI: Up 1.33 percent. The Shanghai Composite Index, which covers A and B shares, was up 44.11 points to 3,372.60. The key index ended at the highest level since June 3 last year.
MUMBAI: Up 0.97 percent. The 30-share SENSEX rose 147.92 points to 15,378.96.
NATIONAL SECURITY THREAT: An official said that Guan Guan’s comments had gone beyond the threshold of free speech, as she advocated for the destruction of the ROC China-born media influencer Guan Guan’s (關關) residency permit has been revoked for repeatedly posting pro-China content that threatens national security, the National Immigration Agency said yesterday. Guan Guan has said many controversial things in her videos posted to Douyin (抖音), including “the red flag will soon be painted all over Taiwan” and “Taiwan is an inseparable part of China,” while expressing hope for expedited “reunification.” The agency received multiple reports alleging that Guan Guan had advocated for armed reunification last year. After investigating, the agency last month issued a notice requiring her to appear and account for her actions. Guan Guan appeared as required,
A strong cold air mass is expected to arrive tonight, bringing a change in weather and a drop in temperature, the Central Weather Administration (CWA) said. The coldest time would be early on Thursday morning, with temperatures in some areas dipping as low as 8°C, it said. Daytime highs yesterday were 22°C to 24°C in northern and eastern Taiwan, and about 25°C to 28°C in the central and southern regions, it said. However, nighttime lows would dip to about 15°C to 16°C in central and northern Taiwan as well as the northeast, and 17°C to 19°C elsewhere, it said. Tropical Storm Nokaen, currently
‘NATO-PLUS’: ‘Our strategic partners in the Indo-Pacific are facing increasing aggression by the Chinese Communist Party,’ US Representative Rob Wittman said The US House of Representatives on Monday released its version of the Consolidated Appropriations Act, which includes US$1.15 billion to support security cooperation with Taiwan. The omnibus act, covering US$1.2 trillion of spending, allocates US$1 billion for the Taiwan Security Cooperation Initiative, as well as US$150 million for the replacement of defense articles and reimbursement of defense services provided to Taiwan. The fund allocations were based on the US National Defense Authorization Act for fiscal 2026 that was passed by the US Congress last month and authorized up to US$1 billion to the US Defense Security Cooperation Agency in support of the
PAPERS, PLEASE: The gang exploited the high value of the passports, selling them at inflated prices to Chinese buyers, who would treat them as ‘invisibility cloaks’ The Yilan District Court has handed four members of a syndicate prison terms ranging from one year and two months to two years and two months for their involvement in a scheme to purchase Taiwanese passports and resell them abroad at a massive markup. A Chinese human smuggling syndicate purchased Taiwanese passports through local criminal networks, exploiting the passports’ visa-free travel privileges to turn a profit of more than 20 times the original price, the court said. Such criminal organizations enable people to impersonate Taiwanese when entering and exiting Taiwan and other countries, undermining social order and the credibility of the nation’s
RSS