Asian stocks gain as China refrains from raising rates
Sunday, 19 December 2010
TOKYO, Dec 18 (Bloomberg): Asian stocks rose for the second week this month, as steelmakers led gains, after China refrained from raising interest rates and US data improved.
BlueScope Steel Ltd, Australia's largest steelmaker, advanced 9.1 per cent in Sydney. Honda Motor Co, which counts North America as its biggest market, gained 3 per cent in Tokyo.
China Overseas Land & Investment Ltd, controlled by the nation's construction ministry, lost 2.9 per cent after a report that China will toughen controls in the property market. HSBC Holdings Plc, Europe's largest lender, lost 1.7 per cent in Hong Kong after Moody's Investors Service put Spain and Greece's credit rating on review.
The MSCI Asia Pacific Index climbed 0.4 per cent to 133.59 this week. The gauge closed up on three days this week, and rose the most on Dec 13, after China refrained from raising interest rates to cool inflation, and US reports on consumer confidence, the trade deficit and claims for jobless benefits beat forecasts.
"Fears of an interest rate increase in China have not come to fruition so far," said Tim Schroeders, who helps manage $1 billion in Melbourne at Pengana Capital Ltd. "There's a sense of relief in markets.
This may be only temporary as Chinese authorities become increasingly concerned about the possibility of inflationary pressures undermining the economy's longer-term growth prospects."
In Japan, the Nikkei 225 Stock Average gained 0.9 per cent, its seventh straight weekly advance and its longest winning streak since the eight-week period ended April 2. Australia's S&P/ASX 200 Index climbed 0.4 per cent. South Korea's Kospi index rose 2 per cent.
Hong Kong's Hang Seng Index declined 1.9 per cent while the Shanghai Composite Index rose 1.9 per cent this week. India's Sensitive Index rose 1.8 per cent. The measure was closed on Dec 17 for a holiday.
Steelmakers led gains this week, with a gauge tracking material shares rising 1 per cent, the most among the 10 industry groups on the MSCI Asia Pacific index.
BlueScope Steel, which receives 22 per cent of its sales from Asia, rose 9.1 per cent to A$2.29 in Sydney. JFE Holdings Inc, Japan's second-largest steelmaker, rose 2.7 per cent to 2,836 yen in Tokyo.
BlueScope Steel Ltd, Australia's largest steelmaker, advanced 9.1 per cent in Sydney. Honda Motor Co, which counts North America as its biggest market, gained 3 per cent in Tokyo.
China Overseas Land & Investment Ltd, controlled by the nation's construction ministry, lost 2.9 per cent after a report that China will toughen controls in the property market. HSBC Holdings Plc, Europe's largest lender, lost 1.7 per cent in Hong Kong after Moody's Investors Service put Spain and Greece's credit rating on review.
The MSCI Asia Pacific Index climbed 0.4 per cent to 133.59 this week. The gauge closed up on three days this week, and rose the most on Dec 13, after China refrained from raising interest rates to cool inflation, and US reports on consumer confidence, the trade deficit and claims for jobless benefits beat forecasts.
"Fears of an interest rate increase in China have not come to fruition so far," said Tim Schroeders, who helps manage $1 billion in Melbourne at Pengana Capital Ltd. "There's a sense of relief in markets.
This may be only temporary as Chinese authorities become increasingly concerned about the possibility of inflationary pressures undermining the economy's longer-term growth prospects."
In Japan, the Nikkei 225 Stock Average gained 0.9 per cent, its seventh straight weekly advance and its longest winning streak since the eight-week period ended April 2. Australia's S&P/ASX 200 Index climbed 0.4 per cent. South Korea's Kospi index rose 2 per cent.
Hong Kong's Hang Seng Index declined 1.9 per cent while the Shanghai Composite Index rose 1.9 per cent this week. India's Sensitive Index rose 1.8 per cent. The measure was closed on Dec 17 for a holiday.
Steelmakers led gains this week, with a gauge tracking material shares rising 1 per cent, the most among the 10 industry groups on the MSCI Asia Pacific index.
BlueScope Steel, which receives 22 per cent of its sales from Asia, rose 9.1 per cent to A$2.29 in Sydney. JFE Holdings Inc, Japan's second-largest steelmaker, rose 2.7 per cent to 2,836 yen in Tokyo.