Asian stocks advance for third week on growth optimism
Sunday, 10 January 2010
SINGAPORE, Jan 9 (Bloomberg): Asian stocks advanced for the third week as higher retail sales and expanding manufacturing activities in the US boosted confidence in the global economic recovery.
Nintendo Co, the maker of Wii gaming consoles, surged 16 percent after reporting increased US sales. PetroChina Co, the nation's biggest oil producer, gained 8.2 per cent after crude oil rallied to its highest-level in 14 months. Hutchison Telecommunications International Ltd jumped 32 per cent in Hong Kong after its parent offered to buy out the company.
"Demand is on a steady recovery worldwide," said Yoshinori Nagano, a senior strategist in Tokyo at Daiwa Asset Management Co, which oversees the equivalent of $94 billion. "The market and economy will be better in 2010."
The MSCI Asia Pacific Index rose 3.1 per cent to 124.22 in the first week of trading for 2010. The gauge climbed 34 per cent last year, the biggest annual gain since 2003, as central banks cut borrowing costs and governments boosted spending to drag their economies out of recession.
Japan's Nikkei 225 Stock Average gained 2.4 per cent this week on speculation overseas earnings will climb as the yen weakened to its lowest level against the dollar since August following comments by Finance Minister Naoto Kan.
Hong Kong's Hang Seng Index rose 1.9 per cent and Australia's S&P/ASX 200 Index added 0.9 per cent. The Shanghai Composite Index dropped 2.5 per cent on concern government steps to curb lending growth and property speculation will slow expansion in the world's third-largest economy.
Optimism for global growth grew this week as the US government reported a 1.1 per cent increase in factory orders that was more than twice as much as economists anticipated and Retail Metrics Inc. said December store sales at the country's retailers climbed 3 per cent, the biggest gain since April 2008. Taiwan's exports climbed in December at the fastest pace since February 1995, the government said on Jan 7.
Nintendo surged 16 per cent to 25,580 yen. US sales of the motion-sensing Wii gaming console exceeded 3 million in December, the Kyoto-based company said on Jan 6.
Li & Fung Ltd., which supplies clothes to Wal-Mart Stores Inc, climbed 5 per cent to HK$33.85. Toyota Motor Corp., which posted a 32-per cent surge in December US sales, added 2.1 per cent to 3,960 yen.
"Company earnings will significantly improve this year with the global economy picking up and cost reductions starting to take effect," said Koichi Kurose, chief strategist in Tokyo at Resona Bank Ltd, which holds about $54 billion.
The MSCI Asia Pacific Index's advance last year came amid expectations growth in the region, driven by China, will outperform the rest of the world. The Asian index's 2009 advance outpaced gains of 23 per cent by the US Standard & Poor's 500 Index and 28 per cent for Europe's Dow Jones Stoxx 600 Index.
A gauge of energy shares rose the most of the MSCI Asia Pacific Index's 10 industry groups after crude-oil prices advanced 4.5 per cent this week. Oil touched $83.52 on Jan 6, the highest intraday price since Oct 14, 2008.
PetroChina jumped 8.2 per cent to HK$10.08. Cnooc Ltd, China's largest offshore oil producer, gained 6.9 per cent to HK$13.04.
Rio Tinto Ltd, the world's third-biggest mining company, climbed 5.5 per cent to A$79.01. Aluminum Corp of China Ltd, known as China, surged 16 per cent to HK$9.93 in Hong Kong. The London Metals Exchange Index, a gauge of six metals from aluminum to copper, gained 1.0 per cent this week.
Hutchison Telecommunications surged 32 per cent to HK$2.12 after billionaire Li Ka-shing's Hutchison Whampoa Ltd. offered take the company private for HK$4.23 billion ($545 million). Hutchison Whampoa offered to buy all outstanding shares of the phone unit at HK$2.20 each.
Policy makers need to support "relatively fast" economic growth while managing inflation expectations, the People's Bank of China said in a statement on its Web site on Jan. 6 after an annual work meeting.
South Korea's central bank yesterday kept its benchmark interest rate unchanged even as the nation's exports rose at the fastest pace in 17 months in December and factory output rebounded in November.
Samsung Electronics Co, Asia's biggest maker of semiconductors, flat screens and mobile phones, added 2.8 per cent to 821,000 won. The company reported a profit in the fourth quarter from a loss a year earlier after prices increased and demand for televisions rose.
Gains at South Korean exporters were limited by concern a stronger won will hurt the value of overseas sales.
Nintendo Co, the maker of Wii gaming consoles, surged 16 percent after reporting increased US sales. PetroChina Co, the nation's biggest oil producer, gained 8.2 per cent after crude oil rallied to its highest-level in 14 months. Hutchison Telecommunications International Ltd jumped 32 per cent in Hong Kong after its parent offered to buy out the company.
"Demand is on a steady recovery worldwide," said Yoshinori Nagano, a senior strategist in Tokyo at Daiwa Asset Management Co, which oversees the equivalent of $94 billion. "The market and economy will be better in 2010."
The MSCI Asia Pacific Index rose 3.1 per cent to 124.22 in the first week of trading for 2010. The gauge climbed 34 per cent last year, the biggest annual gain since 2003, as central banks cut borrowing costs and governments boosted spending to drag their economies out of recession.
Japan's Nikkei 225 Stock Average gained 2.4 per cent this week on speculation overseas earnings will climb as the yen weakened to its lowest level against the dollar since August following comments by Finance Minister Naoto Kan.
Hong Kong's Hang Seng Index rose 1.9 per cent and Australia's S&P/ASX 200 Index added 0.9 per cent. The Shanghai Composite Index dropped 2.5 per cent on concern government steps to curb lending growth and property speculation will slow expansion in the world's third-largest economy.
Optimism for global growth grew this week as the US government reported a 1.1 per cent increase in factory orders that was more than twice as much as economists anticipated and Retail Metrics Inc. said December store sales at the country's retailers climbed 3 per cent, the biggest gain since April 2008. Taiwan's exports climbed in December at the fastest pace since February 1995, the government said on Jan 7.
Nintendo surged 16 per cent to 25,580 yen. US sales of the motion-sensing Wii gaming console exceeded 3 million in December, the Kyoto-based company said on Jan 6.
Li & Fung Ltd., which supplies clothes to Wal-Mart Stores Inc, climbed 5 per cent to HK$33.85. Toyota Motor Corp., which posted a 32-per cent surge in December US sales, added 2.1 per cent to 3,960 yen.
"Company earnings will significantly improve this year with the global economy picking up and cost reductions starting to take effect," said Koichi Kurose, chief strategist in Tokyo at Resona Bank Ltd, which holds about $54 billion.
The MSCI Asia Pacific Index's advance last year came amid expectations growth in the region, driven by China, will outperform the rest of the world. The Asian index's 2009 advance outpaced gains of 23 per cent by the US Standard & Poor's 500 Index and 28 per cent for Europe's Dow Jones Stoxx 600 Index.
A gauge of energy shares rose the most of the MSCI Asia Pacific Index's 10 industry groups after crude-oil prices advanced 4.5 per cent this week. Oil touched $83.52 on Jan 6, the highest intraday price since Oct 14, 2008.
PetroChina jumped 8.2 per cent to HK$10.08. Cnooc Ltd, China's largest offshore oil producer, gained 6.9 per cent to HK$13.04.
Rio Tinto Ltd, the world's third-biggest mining company, climbed 5.5 per cent to A$79.01. Aluminum Corp of China Ltd, known as China, surged 16 per cent to HK$9.93 in Hong Kong. The London Metals Exchange Index, a gauge of six metals from aluminum to copper, gained 1.0 per cent this week.
Hutchison Telecommunications surged 32 per cent to HK$2.12 after billionaire Li Ka-shing's Hutchison Whampoa Ltd. offered take the company private for HK$4.23 billion ($545 million). Hutchison Whampoa offered to buy all outstanding shares of the phone unit at HK$2.20 each.
Policy makers need to support "relatively fast" economic growth while managing inflation expectations, the People's Bank of China said in a statement on its Web site on Jan. 6 after an annual work meeting.
South Korea's central bank yesterday kept its benchmark interest rate unchanged even as the nation's exports rose at the fastest pace in 17 months in December and factory output rebounded in November.
Samsung Electronics Co, Asia's biggest maker of semiconductors, flat screens and mobile phones, added 2.8 per cent to 821,000 won. The company reported a profit in the fourth quarter from a loss a year earlier after prices increased and demand for televisions rose.
Gains at South Korean exporters were limited by concern a stronger won will hurt the value of overseas sales.