Asian stocks rally as US growth figures boosted optimism
Sunday, 31 August 2008
HONG KONG, Aug 30 (AP): Asian stocks rallied Friday after overnight gains on Wall Street, as stronger-than-expected US growth figures boosted optimism about the world's largest economy, a vital export market for Asia.
In Japan, the Nikkei 225 index rose 2.39 per cent to 13,072.87 as an upward profit revision at game maker Nintendo added to the upbeat mood.
The Shanghai Composite Index added 2.01 per cent to 2397.37, led partly by financials after the country's No. 3 lender Bank of China Ltd. posted strong first-half earnings. Mainland China shares helped lift Hong Kong's Hang Seng Index by 1.40 per cent to 21,289.70.
Other stock measures were up significantly, with India's Sensex soaring 3.70 per cent and Australia's S&P/ASX 200 rising 1.40 per cent. Even Thai shares edged up despite political unrest in the country.
In New York, the Dow Jones industrial average jumped more than 200 points, or 1.85 per cent, after the government said America's economy grew 3.30 per cent at an annual pace in the second quarter. That was above he government's initial estimate of 1.90 per cent as well as economists' forecast of 2.70 per cent.
Also cheering Asian traders were figures showing Japanese industrial output increased 0.90 per cent in July, outpacing market forecasts.
Japanese stocks posted across-the-board gains, with major exporters like automakers and consumer electronic companies making big strides.
Toyota Motor Corp. shot up 3.35 per cent, and camera maker Canon Inc. rose 3.34 per cent. Nissan Motor Co. strengthened 3.32 per cent after announcing price hikes in Japan Friday for some commercial vehicle models.
In the afternoon, the market got a boost from Nintendo Co., which raised its fiscal year profit forecast by 26 per cent, citing healthy sales of its Wii home console and DS handheld game machines. Its stock surged 8.37 per cent.
Real estate shares regained their footing after a brutal week of losses in the wake of recent bankruptcies in the sector.
Friday gains, however, appear to stem largely from investors buying back stocks after recent declines, said Hideyuki Ishiguro, supervisor at Okasan Securities in Tokyo.
"As for whether this momentum will continue past next week, I'm somewhat skeptical," he said.
In mainland China, stocks rose on bargaining hunting after a weeklong slump, though the Shanghai benchmark finished the month down nearly 14 per cent.
Bank of China gained 1.37 per cent. Also advancing were China's biggest lender, Industrial & Commercial Bank of China Ltd., and No. 2 Construction Bank of China Ltd. Both reported jumps in profits this week.
Real estate stocks rose, though analysts said they could see no reason. Beijing has been trying to cool a boom in lending and construction by tightening credit.
In Hong Kong, Friday's rise capped a dismal month that saw the main stock index shed over 6.0 per cent and touch new yearly lows.
Following a steep slide in the prior session, traders took direction from US and China markets. Volume wasn't large enough, though, to suggest a long-term shift in investor sentiment, analysts said.
"There is a bit of buying around these days, but we still haven't seen the turnover so we can't say there's a return of strong interest in the market," said Howard Gorges, vice chairman of South China Brokerage.
In Japan, the Nikkei 225 index rose 2.39 per cent to 13,072.87 as an upward profit revision at game maker Nintendo added to the upbeat mood.
The Shanghai Composite Index added 2.01 per cent to 2397.37, led partly by financials after the country's No. 3 lender Bank of China Ltd. posted strong first-half earnings. Mainland China shares helped lift Hong Kong's Hang Seng Index by 1.40 per cent to 21,289.70.
Other stock measures were up significantly, with India's Sensex soaring 3.70 per cent and Australia's S&P/ASX 200 rising 1.40 per cent. Even Thai shares edged up despite political unrest in the country.
In New York, the Dow Jones industrial average jumped more than 200 points, or 1.85 per cent, after the government said America's economy grew 3.30 per cent at an annual pace in the second quarter. That was above he government's initial estimate of 1.90 per cent as well as economists' forecast of 2.70 per cent.
Also cheering Asian traders were figures showing Japanese industrial output increased 0.90 per cent in July, outpacing market forecasts.
Japanese stocks posted across-the-board gains, with major exporters like automakers and consumer electronic companies making big strides.
Toyota Motor Corp. shot up 3.35 per cent, and camera maker Canon Inc. rose 3.34 per cent. Nissan Motor Co. strengthened 3.32 per cent after announcing price hikes in Japan Friday for some commercial vehicle models.
In the afternoon, the market got a boost from Nintendo Co., which raised its fiscal year profit forecast by 26 per cent, citing healthy sales of its Wii home console and DS handheld game machines. Its stock surged 8.37 per cent.
Real estate shares regained their footing after a brutal week of losses in the wake of recent bankruptcies in the sector.
Friday gains, however, appear to stem largely from investors buying back stocks after recent declines, said Hideyuki Ishiguro, supervisor at Okasan Securities in Tokyo.
"As for whether this momentum will continue past next week, I'm somewhat skeptical," he said.
In mainland China, stocks rose on bargaining hunting after a weeklong slump, though the Shanghai benchmark finished the month down nearly 14 per cent.
Bank of China gained 1.37 per cent. Also advancing were China's biggest lender, Industrial & Commercial Bank of China Ltd., and No. 2 Construction Bank of China Ltd. Both reported jumps in profits this week.
Real estate stocks rose, though analysts said they could see no reason. Beijing has been trying to cool a boom in lending and construction by tightening credit.
In Hong Kong, Friday's rise capped a dismal month that saw the main stock index shed over 6.0 per cent and touch new yearly lows.
Following a steep slide in the prior session, traders took direction from US and China markets. Volume wasn't large enough, though, to suggest a long-term shift in investor sentiment, analysts said.
"There is a bit of buying around these days, but we still haven't seen the turnover so we can't say there's a return of strong interest in the market," said Howard Gorges, vice chairman of South China Brokerage.