Asian stocks rise for third week
Sunday, 7 October 2007
SINGAPORE, Oct 6 (Bloomberg): Asian stocks gained for a third week and reached a record after former US Federal Reserve Chairman Alan Greenspan and Citigroup Inc. suggested that losses in credit markets will abate.
Mizuho Financial Group Inc. and National Australia Bank Ltd. led a rally by financial shares after Greenspan said lenders are displaying a willingness to take on greater risk and Citigroup forecast earnings will improve this quarter.
Nikko Cordial Corp., Japan's third-biggest brokerage, surged after Citigroup Inc. said it will buy the remaining shares it doesn't own in the company. Cathay Financial Holding Co. gained after agreeing to take over China United Trust & Investment Corp.
``The concerns people had before about the credit squeeze hitting the financial sector now look exaggerated,'' said Kim Han Jin, vice president of Fides Investment Management in Seoul, which manages the equivalent of $990 million in equities. ``Stocks are rising on liquidity and the fading concerns.''
The Morgan Stanley Capital International Asia-Pacific Index added 1.7 per cent to 166.06 after reaching a record on Oct. 3, extending a two-week, 7.1 per cent rally. Financial shares were the biggest gainers among the measure's 10 industry groups, jumping 4.2 per cent.
Japan's Nikkei 225 Stock Average added 1.7 per cent this week. Shares also rose as the Bank of Japan's quarterly Tankan report showed business confidence held near a two-year high. Hong Kong's Hang Seng Index rose to a record on Oct. 2 before posting its biggest two-day loss in seven weeks on concern the recent surge had overvalued the prospects for company earnings. The measure ended the week 2.5 per cent higher.
All others regional markets advanced, with benchmarks in Australia, South Korea, Singapore, Indonesia and India climbing to new highs.
Mizuho Financial Group Inc. and National Australia Bank Ltd. led a rally by financial shares after Greenspan said lenders are displaying a willingness to take on greater risk and Citigroup forecast earnings will improve this quarter.
Nikko Cordial Corp., Japan's third-biggest brokerage, surged after Citigroup Inc. said it will buy the remaining shares it doesn't own in the company. Cathay Financial Holding Co. gained after agreeing to take over China United Trust & Investment Corp.
``The concerns people had before about the credit squeeze hitting the financial sector now look exaggerated,'' said Kim Han Jin, vice president of Fides Investment Management in Seoul, which manages the equivalent of $990 million in equities. ``Stocks are rising on liquidity and the fading concerns.''
The Morgan Stanley Capital International Asia-Pacific Index added 1.7 per cent to 166.06 after reaching a record on Oct. 3, extending a two-week, 7.1 per cent rally. Financial shares were the biggest gainers among the measure's 10 industry groups, jumping 4.2 per cent.
Japan's Nikkei 225 Stock Average added 1.7 per cent this week. Shares also rose as the Bank of Japan's quarterly Tankan report showed business confidence held near a two-year high. Hong Kong's Hang Seng Index rose to a record on Oct. 2 before posting its biggest two-day loss in seven weeks on concern the recent surge had overvalued the prospects for company earnings. The measure ended the week 2.5 per cent higher.
All others regional markets advanced, with benchmarks in Australia, South Korea, Singapore, Indonesia and India climbing to new highs.