Asian stocks advance on earnings
Friday, 3 August 2007
SINGAPORE, Aug 2 (Bloomberg): Asian stocks rose, recovering from earlier losses, after higher profits from Astellas Pharma Inc. and Chi Mei Optoelectronics Corp. helped counter concern the US subprime loans crisis is spreading.
Fast Retailing Co., Asia's largest clothing retailer, rose after its $900 million bid for a New York chain was accepted. Taiwan Life Insurance Co. slumped after reporting a hedge fund loss. Mizuho Financial Group Inc. paced a decline in Japanese banks for a second day after first-quarter profit fell.
The Morgan Stanley Capital International Asia Pacific Index added 0.2 per cent to 151.75 as of 6:49 p.m. in Tokyo, after earlier gaining 0.8 per cent and dropping 1.4 per cent. The measure slid yesterday to its lowest since June 27 after Macquarie Bank Ltd. and Bear Stearns Cos. said funds may post losses.
``The markets are bungee-jumping as they sort out the problems about the US subprime problems,'' said Winson Fong, who helps oversee about $2.5 billion at SG Asset Management in Hong Kong. ``The question on everyone's mind is whether investor confidence can be maintained.''
Japan's Nikkei 225 Stock Average added 0.7 per cent to 16,984.11, while the Topix index ended little changed. Mitsubishi Estate Co. led property stocks higher after a report showed land prices climbed 8.6 per cent in 2006.
China's CSI 300 Index jumped 3.4 per cent, Asia's biggest advance, on speculation corporate earnings growth will be sustained. Markets open for trading rose, except in South Korea, Hong Kong, Malaysia, New Zealand, Philippines and Thailand.
Concern that losses in home loans to risky borrowers will spread wiped out $2.1 trillion of global market value last week. European stocks declined yesterday as all 18 industry groups in the Dow Jones Stoxx 600 Index retreated.
US stocks rose yesterday after a rally in computer and consumer shares including Apple Inc. lifted the Dow Jones Industrial Average 150 points in the last 20 minutes of trading. An erroneous trade was behind the spike, some traders said.
``I heard about it, but no one is able to confirm it so it's purely speculation at the moment,'' said David Leong, who heads the Singapore trading desk at First State Investments Ltd., which manages $22 billion in global equities. ``If the speculation is true, then the closing in the US was faked.''
Fast Retailing Co., Asia's largest clothing retailer, rose after its $900 million bid for a New York chain was accepted. Taiwan Life Insurance Co. slumped after reporting a hedge fund loss. Mizuho Financial Group Inc. paced a decline in Japanese banks for a second day after first-quarter profit fell.
The Morgan Stanley Capital International Asia Pacific Index added 0.2 per cent to 151.75 as of 6:49 p.m. in Tokyo, after earlier gaining 0.8 per cent and dropping 1.4 per cent. The measure slid yesterday to its lowest since June 27 after Macquarie Bank Ltd. and Bear Stearns Cos. said funds may post losses.
``The markets are bungee-jumping as they sort out the problems about the US subprime problems,'' said Winson Fong, who helps oversee about $2.5 billion at SG Asset Management in Hong Kong. ``The question on everyone's mind is whether investor confidence can be maintained.''
Japan's Nikkei 225 Stock Average added 0.7 per cent to 16,984.11, while the Topix index ended little changed. Mitsubishi Estate Co. led property stocks higher after a report showed land prices climbed 8.6 per cent in 2006.
China's CSI 300 Index jumped 3.4 per cent, Asia's biggest advance, on speculation corporate earnings growth will be sustained. Markets open for trading rose, except in South Korea, Hong Kong, Malaysia, New Zealand, Philippines and Thailand.
Concern that losses in home loans to risky borrowers will spread wiped out $2.1 trillion of global market value last week. European stocks declined yesterday as all 18 industry groups in the Dow Jones Stoxx 600 Index retreated.
US stocks rose yesterday after a rally in computer and consumer shares including Apple Inc. lifted the Dow Jones Industrial Average 150 points in the last 20 minutes of trading. An erroneous trade was behind the spike, some traders said.
``I heard about it, but no one is able to confirm it so it's purely speculation at the moment,'' said David Leong, who heads the Singapore trading desk at First State Investments Ltd., which manages $22 billion in global equities. ``If the speculation is true, then the closing in the US was faked.''