ASIAN STOCKS ADVANCE WITH JAPAN STOCKS LEADING THE CHARGE Asian stocks marched higher on Friday trading action, cheering a bounce back on Wall Street and upbeat German manufacturing data, with Japanese shares leading the charge on the back of a declined yen. Australia’s S&P/ASX 200 obtained a 1% increase, South Korea’s Kospi jumped 1.3%, Hong Kong’s Hang Seng Index rallied 0.6%, and China’s Shanghai Composite rose 0.3%. Japan’s Nikkei Stock Average was the region’s best mover, skyrocketing 2.4% as the U.S. dollar surged toward the ¥99-level and after a Reuters survey showed local manufacturers’ optimism climbed to the highest level in three years. The performance supported the Nikkei Average, the Shanghai Composite and the S&P/ASX 200 all brings down declines they had accumulated earlier in the week. Global equity markets were rocked recently due to uncertainty surrounding the Federal Reserve’s bond-purchase program, with emerging markets in particular hit by worries that reduced stimulus from the U.S. central bank would spur foreign fund outflows from the region. ING Financial Markets economist Tim Condon stated that a tapering of the $85 billion-a-month in Fed stimulus could result in a rapid repricing of U.S. Treasury yields, lifting the 10-year yield by around 1.50 percentage point in about two quarters. However, “once it’s over, the economic fundamentals ... will reassert themselves as the drivers of financial-asset prices. We’re not there yet, and contagion could still cause a balance-of-payments crisis in an emerging market with a too-large current-account deficit,” Condon said. Stock soars in Tokyo were spread across sectors, with Yamaha Motor Co. uptrending 4.9%, Citizen Holdings Co. hiking 3.4%, Kawasaki Heavy Industries Ltd. rallying 4.9%, Sumitomo Metal Mining Co. leaping 4.3% and banking giant Mitsubishi UFJ Financial Group Inc. exchanging 2.9% greater. Mitsubishi Motors Corp. moved 3.4% higher after the Nikkei newspaper reported it planned to build an automobile plant in the Philippines by around 2015. The gains also followed a higher closing for the Dow Jones Industrial Average, which slashed a six-day declining streak overnight after a monthly average of unemployment claims skidded to a more than five-year low in the U.S., and as manufacturing Purchasing Managers’ Index readings from China and Germany signalled expansion. “The fact that the U.S. and European recoveries are improving (albeit fractionally) is a good foundation for global markets, but investors firstly have to get through the removal of the price distortions that quantitative easing created,” said Perpetual investment market-research chief Matthew Sherwood. In Sydney, mining major Rio Tinto Ltd. flew 1.1%, while Fortescue Metals Group Ltd. upgrades 3.5%, extending its post-earnings advance from Thursday. A more-than-1% climb for Nymex crude futures overnight aided the region’s energy producers. Woodside Petroleum Ltd bolstered 1.4% in Sydney, Inpex Corp. spiked 2.1% in Tokyo, and PetroChina Co. rallied 0.4% in Shanghai. Meanwhile, advances in Hong Kong were supported by post-earnings purchasing in a few stocks. Kunlun Energy Co. clinched a 1.5% gain after the firm displayed a 5% increase in its first-half profit, while Henderson Land Development Co. shot 2.7% up despite a slight decrease in its earnings. Source: mt5/
Posted on: Fri, 23 Aug 2013 08:49:24 +0000
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