Asian stocks rise on US rate cut speculation
Friday, 30 November 2007
SINGAPORE, Nov 29 (Bloomberg): Asian stocks rose, led by Toyota Motor Co. and Samsung Electronics Co., on expectations the Federal Reserve will cut US interest rates to support growth in the region's largest export market.
Toyota and Samsung climbed to their highest in about two weeks after Fed Vice Chairman Donald Kohn said policymakers must be "flexible and pragmatic" in response to a credit market "deterioration." Mitsubishi UFJ Financial Group Inc. led banks higher. Sino Land Co. paced gains among Hong Kong developers on speculation the city's borrowing costs will follow US rates lower, boosting demand for real estate.
"Kohn's comments increased expectations of a rate cut, and we might even see a large reduction this time, which should help to support the US economy and stocks at home as well," said Naoki Fujiwara, who helps oversee $3.2 billion as chief fund manager at Shinkin Asset Management Co. in Tokyo.
The MSCI Asia Pacific Index climbed 2.5 per cent to 160.62 at 5:22 p.m. in Tokyo, with all 10 industry groups advancing. Japan's Nikkei 225 Stock Average jumped 2.4 per cent. Hong Kong's Hang Seng Index rose 4.1 per cent, extending gains after a Chinese official said the country will proceed with a plan allowing individual purchases of the city's stocks.
All markets advanced in the region except in New Zealand, Vietnam and Sri Lanka.
Toyota and Samsung climbed to their highest in about two weeks after Fed Vice Chairman Donald Kohn said policymakers must be "flexible and pragmatic" in response to a credit market "deterioration." Mitsubishi UFJ Financial Group Inc. led banks higher. Sino Land Co. paced gains among Hong Kong developers on speculation the city's borrowing costs will follow US rates lower, boosting demand for real estate.
"Kohn's comments increased expectations of a rate cut, and we might even see a large reduction this time, which should help to support the US economy and stocks at home as well," said Naoki Fujiwara, who helps oversee $3.2 billion as chief fund manager at Shinkin Asset Management Co. in Tokyo.
The MSCI Asia Pacific Index climbed 2.5 per cent to 160.62 at 5:22 p.m. in Tokyo, with all 10 industry groups advancing. Japan's Nikkei 225 Stock Average jumped 2.4 per cent. Hong Kong's Hang Seng Index rose 4.1 per cent, extending gains after a Chinese official said the country will proceed with a plan allowing individual purchases of the city's stocks.
All markets advanced in the region except in New Zealand, Vietnam and Sri Lanka.