Asian stocks have biggest weekly advance this year on US data
Sunday, 20 June 2010
TOKYO, June 19 (Bloomberg): Asian stocks rose this week, driving the MSCI Asia Pacific Index up the most since December, as US economic reports eased concern that deficits in Europe will slow a global recovery, and brokerages boosted investment ratings.
Samsung Electronics Co, Asia's biggest semi-conductor maker, gained 3.1 per cent in Seoul this week on the outlook for chip demand. Nissan Motor Co jumped 6.2 per cent in Tokyo after Citigroup Inc reiterated its "buy" rating on the carmaker. Cnooc Ltd, China's largest offshore oil producer, rose 4.7 per cent in Hong Kong as crude oil exceeded $75 a barrel and analysts recommended the stock. Nintendo Co soared 16 per cent in Osaka, Japan, after introducing a new video-game player.
The MSCI Asia Pacific Index rose 3.3 per cent this week, the most since the period ended Dec 4. It has lost 3.6 per cent this year on concern Greece and other European countries will struggle to curb their budget deficits and repay debt.
"There was a lot of pessimism about what's happening in Europe that took the market down," said Tim Leung, who helps manage about $1.5 billion at IG Investment Ltd in Hong Kong. "It's rebounding from that pessimism."
Samsung Electronics, which receives about 44 per cent of its sales from the Americas and Europe, gained 3.1 per cent to 822,000 won this week in Seoul. Tokyo Electron Ltd, the world's second-biggest maker of semiconductor equipment, increased 2.3 per cent to 5,690 yen in Tokyo. Taiwan Semiconductor Manufacturing Co, the world's biggest maker of custom chips, increased 3.6 per cent to NT62.7 in Taipei.
Global sales in the chip industry will increase almost 30 percent this year, compared with an April forecast of 22 per cent, Morris Chang, chairman and chief executive officer of TSMC, said this week.
The MSCI Asia Pacific Index has slumped 10 per cent from its high this year on April 15 as swelling budget deficits prompted Standard & Poor's to cut ratings of Greece, Spain and Portugal.
The retreat has driven down the average price of shares in the gauge to about 14.8 times estimated earnings. The ratio sank to 13.8 times on May 18, the lowest level since December 2008.
Stocks rebounded this week, with the MSCI Asia Pacific Index advancing every day. The University of Michigan preliminary index of consumer sentiment for June advanced to the highest level since January 2008, and the Federal Reserve Bank of New York said its general economic index of manufacturing rose in June for an 11th consecutive month.
"US economic data remain resilient, and economies continue to improve globally," said Kiyoshi Ishigane, a strategist in Tokyo at Mitsubishi UFJ Asset Management Co, which oversees more than $65 billion.
Li & Fung Ltd, a trading company that generates two-thirds of its sales in the US, jumped 7 per cent to HK$38.30 in Hong Kong. Honda Motor Co, a carmaker that gets more than 80 per cent of its revenue abroad, gained 3.2 per cent to 2,690 yen in Tokyo.
Hyundai Motor Co, South Korea's largest automaker, jumped 5.1 per cent to 144,500 won. LIG Investment & Securities Co raised its estimate on the automaker's share price by 20 per cent.
Nissan, Japan's third-biggest carmaker, surged 6.2 per cent to 671 yen. Goldman Sachs Group Inc raised its rating on the company to "buy" from "neutral." Cnooc advanced 4.7 per cent to HK$13.50 this week after HSBC Holdings Plc boosted the company to "overweight" from "neutral."
Nintendo, the world's biggest maker of video-game machines, soared 16 per cent to 28,380 yen this week after the company unveiled a handheld player that shows 3-D images without special glasses. UBS AG boosted its recommendation on the stock to "buy" from "neutral."
Samsung Electronics Co, Asia's biggest semi-conductor maker, gained 3.1 per cent in Seoul this week on the outlook for chip demand. Nissan Motor Co jumped 6.2 per cent in Tokyo after Citigroup Inc reiterated its "buy" rating on the carmaker. Cnooc Ltd, China's largest offshore oil producer, rose 4.7 per cent in Hong Kong as crude oil exceeded $75 a barrel and analysts recommended the stock. Nintendo Co soared 16 per cent in Osaka, Japan, after introducing a new video-game player.
The MSCI Asia Pacific Index rose 3.3 per cent this week, the most since the period ended Dec 4. It has lost 3.6 per cent this year on concern Greece and other European countries will struggle to curb their budget deficits and repay debt.
"There was a lot of pessimism about what's happening in Europe that took the market down," said Tim Leung, who helps manage about $1.5 billion at IG Investment Ltd in Hong Kong. "It's rebounding from that pessimism."
Samsung Electronics, which receives about 44 per cent of its sales from the Americas and Europe, gained 3.1 per cent to 822,000 won this week in Seoul. Tokyo Electron Ltd, the world's second-biggest maker of semiconductor equipment, increased 2.3 per cent to 5,690 yen in Tokyo. Taiwan Semiconductor Manufacturing Co, the world's biggest maker of custom chips, increased 3.6 per cent to NT62.7 in Taipei.
Global sales in the chip industry will increase almost 30 percent this year, compared with an April forecast of 22 per cent, Morris Chang, chairman and chief executive officer of TSMC, said this week.
The MSCI Asia Pacific Index has slumped 10 per cent from its high this year on April 15 as swelling budget deficits prompted Standard & Poor's to cut ratings of Greece, Spain and Portugal.
The retreat has driven down the average price of shares in the gauge to about 14.8 times estimated earnings. The ratio sank to 13.8 times on May 18, the lowest level since December 2008.
Stocks rebounded this week, with the MSCI Asia Pacific Index advancing every day. The University of Michigan preliminary index of consumer sentiment for June advanced to the highest level since January 2008, and the Federal Reserve Bank of New York said its general economic index of manufacturing rose in June for an 11th consecutive month.
"US economic data remain resilient, and economies continue to improve globally," said Kiyoshi Ishigane, a strategist in Tokyo at Mitsubishi UFJ Asset Management Co, which oversees more than $65 billion.
Li & Fung Ltd, a trading company that generates two-thirds of its sales in the US, jumped 7 per cent to HK$38.30 in Hong Kong. Honda Motor Co, a carmaker that gets more than 80 per cent of its revenue abroad, gained 3.2 per cent to 2,690 yen in Tokyo.
Hyundai Motor Co, South Korea's largest automaker, jumped 5.1 per cent to 144,500 won. LIG Investment & Securities Co raised its estimate on the automaker's share price by 20 per cent.
Nissan, Japan's third-biggest carmaker, surged 6.2 per cent to 671 yen. Goldman Sachs Group Inc raised its rating on the company to "buy" from "neutral." Cnooc advanced 4.7 per cent to HK$13.50 this week after HSBC Holdings Plc boosted the company to "overweight" from "neutral."
Nintendo, the world's biggest maker of video-game machines, soared 16 per cent to 28,380 yen this week after the company unveiled a handheld player that shows 3-D images without special glasses. UBS AG boosted its recommendation on the stock to "buy" from "neutral."