Asia stocks rise on China Growth
Sunday, 13 September 2009
HONGKONG, Sept 12 (Bloomberg): Asian stocks rose 4.4 per cent in the week to the highest level in a year as the Group of 20 nations agreed on measures to shore up the financial system and China reported better-than-expected economic data.
National Australia Bank Ltd. climbed 6.7 per cent as G-20 finance chiefs agreed on a regulatory blueprint to help avoid a repeat of the global financial crisis. China Unicom (Hong Kong) Ltd. rallied 6.9 per cent after China's industrial production rose last month from a year earlier. Elpida Memory Inc. gained 8.6 per cent in Tokyo after Texas Instruments Inc. lifted its forecasts, while Newcrest Mining Ltd. surged 7.4 per cent in Sydney as gold rose above $1,000 an ounce.
"It's clear there's an ongoing commitment by the authorities to make sure this recovery works," said Nader Naeimi, a Sydney-based strategist at AMP Capital Investors, which manages about $75 billion. "Together with the evidence of a recovery we're already seeing, it points to a continuing improvement in the economic outlook."
The MSCI Asia Pacific Index climbed 4.4 per cent to 117.82 in the past five days, its seventh week of alternating between gains and losses. The gauge has surged 67 per cent from a more than five-year low on March 9 on speculation the global economy is recovering.
China's Shanghai Composite Index rose 4.5 per cent in the week as the statistics bureau said industrial production increased 12.3 per cent in August from a year earlier, beating the 11.8 per cent median estimate of 15 economists surveyed by Bloomberg News. Urban fixed-asset investment for the eight months to Aug. 31 climbed 33 per cent, more than the 32.7 per cent median estimate in a survey of economists.
Japan's Nikkei 225 Stock Average advanced 2.5 per cent, even as the Cabinet Office reported that the country's economy grew at a 2.3 per cent annual rate in the second quarter, lower than the 3.7 per cent expansion originally estimated. Australia's S&P/ASX 200 rose 3.6 per cent, while the Hang Seng Index in Hong Kong advanced 4.2 per cent.
"Investors are focusing on the relative cheapness of equities," said Hiroichi Nishi, an equities manager at Tokyo- based Nikko Cordial Securities Inc.
National Australia Bank climbed 6.7 per cent to A$29.04. The G-20 measures to shore up the financial system include forcing banks to curb leverage and raise the amount and quality of assets they keep in reserve once growth takes hold.
Rival Commonwealth Bank of Australia added 0.7 per cent to A$47.60, while HSBC Holdings Plc, Europe's largest lender, gained 3.1 per cent to HK$84.60 in Hong Kong.
Greater-than-expected profit reports have helped fuel the MSCI Asia Pacific Index's rally since March. Among the 642 companies on the gauge that reported quarterly net income in the past two months, 35 per cent have beaten analyst estimates, while 21 per cent have missed.
"There's a lot of expectation priced in after the recent rally," said Matt Riordan, who helps manage about $4.1 billion at Paradice Investment Management in Sydney. "Still, the economic data globally and earnings have tended to surprise on the upside."
China Unicom rallied 6.9 per cent to HK$11.48 in Hong Kong. Telefonica SA, Europe's second-biggest phone company, will pay $1 billion to boost its stake in China's second-biggest wireless carrier to 8.1 per cent from 5.4 per cent, the two companies announced in a joint statement.
China Yurun Food Group Ltd., the country's biggest hog processor, jumped 10 per cent after first-half profit rose 37 per cent and China's Premier Wen Jiabao signaled that he will maintain unprecedented government spending to support the nation's economic rebound.
Newcrest Mining surged 7.4 per cent to A$34.16 as gold futures punched through $1,000 an ounce for the first time in more than six months on Sept. 7. Zhaojin Mining Industry Co., a gold mining company based in China's Shandong province, jumped 15 per cent to HK$14.24.
Among stocks that fell this week, Lenovo Group Ltd. slid 5.7 per cent to HK$3.46 in Hong Kong after shareholders TPG Inc., General Atlantic and Newbridge Asia sold shares in the company, according to sales document.
Haseko Corp., one of Japan's largest construction companies, tumbled 12 per cent to 94 yen after saying it will issue convertible bonds, prompting Credit Suisse Group AG to cut the shares to "neutral" from "outperform."
National Australia Bank Ltd. climbed 6.7 per cent as G-20 finance chiefs agreed on a regulatory blueprint to help avoid a repeat of the global financial crisis. China Unicom (Hong Kong) Ltd. rallied 6.9 per cent after China's industrial production rose last month from a year earlier. Elpida Memory Inc. gained 8.6 per cent in Tokyo after Texas Instruments Inc. lifted its forecasts, while Newcrest Mining Ltd. surged 7.4 per cent in Sydney as gold rose above $1,000 an ounce.
"It's clear there's an ongoing commitment by the authorities to make sure this recovery works," said Nader Naeimi, a Sydney-based strategist at AMP Capital Investors, which manages about $75 billion. "Together with the evidence of a recovery we're already seeing, it points to a continuing improvement in the economic outlook."
The MSCI Asia Pacific Index climbed 4.4 per cent to 117.82 in the past five days, its seventh week of alternating between gains and losses. The gauge has surged 67 per cent from a more than five-year low on March 9 on speculation the global economy is recovering.
China's Shanghai Composite Index rose 4.5 per cent in the week as the statistics bureau said industrial production increased 12.3 per cent in August from a year earlier, beating the 11.8 per cent median estimate of 15 economists surveyed by Bloomberg News. Urban fixed-asset investment for the eight months to Aug. 31 climbed 33 per cent, more than the 32.7 per cent median estimate in a survey of economists.
Japan's Nikkei 225 Stock Average advanced 2.5 per cent, even as the Cabinet Office reported that the country's economy grew at a 2.3 per cent annual rate in the second quarter, lower than the 3.7 per cent expansion originally estimated. Australia's S&P/ASX 200 rose 3.6 per cent, while the Hang Seng Index in Hong Kong advanced 4.2 per cent.
"Investors are focusing on the relative cheapness of equities," said Hiroichi Nishi, an equities manager at Tokyo- based Nikko Cordial Securities Inc.
National Australia Bank climbed 6.7 per cent to A$29.04. The G-20 measures to shore up the financial system include forcing banks to curb leverage and raise the amount and quality of assets they keep in reserve once growth takes hold.
Rival Commonwealth Bank of Australia added 0.7 per cent to A$47.60, while HSBC Holdings Plc, Europe's largest lender, gained 3.1 per cent to HK$84.60 in Hong Kong.
Greater-than-expected profit reports have helped fuel the MSCI Asia Pacific Index's rally since March. Among the 642 companies on the gauge that reported quarterly net income in the past two months, 35 per cent have beaten analyst estimates, while 21 per cent have missed.
"There's a lot of expectation priced in after the recent rally," said Matt Riordan, who helps manage about $4.1 billion at Paradice Investment Management in Sydney. "Still, the economic data globally and earnings have tended to surprise on the upside."
China Unicom rallied 6.9 per cent to HK$11.48 in Hong Kong. Telefonica SA, Europe's second-biggest phone company, will pay $1 billion to boost its stake in China's second-biggest wireless carrier to 8.1 per cent from 5.4 per cent, the two companies announced in a joint statement.
China Yurun Food Group Ltd., the country's biggest hog processor, jumped 10 per cent after first-half profit rose 37 per cent and China's Premier Wen Jiabao signaled that he will maintain unprecedented government spending to support the nation's economic rebound.
Newcrest Mining surged 7.4 per cent to A$34.16 as gold futures punched through $1,000 an ounce for the first time in more than six months on Sept. 7. Zhaojin Mining Industry Co., a gold mining company based in China's Shandong province, jumped 15 per cent to HK$14.24.
Among stocks that fell this week, Lenovo Group Ltd. slid 5.7 per cent to HK$3.46 in Hong Kong after shareholders TPG Inc., General Atlantic and Newbridge Asia sold shares in the company, according to sales document.
Haseko Corp., one of Japan's largest construction companies, tumbled 12 per cent to 94 yen after saying it will issue convertible bonds, prompting Credit Suisse Group AG to cut the shares to "neutral" from "outperform."