Most Asian Stocks Rise After Chinese Economic Growth Accelerates. Most Asian stocks rose, with the regional benchmark index set to advance for a second week, as China reported economic growth accelerated and after the U.S. reopened its government and averted a debt default. Sands China Ltd. jumped 6.6 percent in Hong Kong after the Macau casino operator controlled by billionaire Sheldon Adelson reported higher profit. Newcrest Mining Ltd. (NCM), Australia’s biggest gold producer, rose 5.8 percent as the bullion traded near a two-week high. SBI Holdings Inc. fell 2.7 percent after the Japanese brokerage said it plans to sell convertible bonds. The MSCI Asia Pacific Index added 0.1 percent to 142.80 as of 11:18 a.m. in Tokyo, with about five shares rising for every three that fell. The gauge is on course for a 1.3 percent advance this week as investors shift their focus from the resolution of the U.S. fiscal showdown to the timeline for cuts to the Federal Reserve’s bond-buying program. “We’ve got a short-term solution to the U.S. fiscal impasse, which will keep people positive,” Mark Lister, head of private wealth research at Craigs Investment Partners Ltd. in Wellington, said by telephone. “The Federal Reserve will be very wary of pulling back stimulus when you’ve got this political issue still to come in January and February. We’ve seen a turnaround in economic data from Europe and China, and that’s been able to offset concerns about the U.S. ”China Data China’s Shanghai Composite Index gained 0.1 percent. The nation’s economy expanded 7.8 in the third quarter from a year earlier, the National Bureau of Statistics said in Beijing today. The median estimate in a Bloomberg News survey of 48 analysts was for a 7.8 percent gain in gross domestic product after a 7.5 percent advance in the second quarter. Industrial production in China rose 10.2 percent in September from a year earlier, while retail sales climbed 13.3 percent from a year earlier, separate reports showed. Hong Kong’s Hang Seng Index and Australia’s S&P/ASX 200 Index both increased 0.7 percent. Japan’s Topix index was little changed and South Korea’s Kospi index added 0.1 percent. Taiwan’s Taiex index gained 0.4 percent and New Zealand’s NZX 50 Index slipped 0.1 percent. The MSCI Asia Pacific Index climbed 2.9 percent this month through yesterday as the U.S. Congress voted to end the government shutdown and raise the debt ceiling. The gauge traded at 13.7 times estimated earnings yesterday, compared with 15.7 for the Standard & Poor’s 500 Index and 14.5 for the Stoxx Europe 600 Index. U.S. FuturesS&P 500 futures added 0.2 percent today. The U.S. equity gauge rose to a record yesterday as speculation grew that the Federal Reserve will maintain the pace of stimulus after Congress ended the budget standoff. President Barack Obama signed into law a measure ending the 16-day government shutdown and extending the nation’s borrowing authority until early next year. BlackRock Inc. and Pacific Investment Management Co. say the Fed will postpone tapering its bond purchases as a result of the debt-ceiling debate. Congress acted just before the U.S. borrowing authority was scheduled to lapse as lawmakers engaged in their fourth round of fiscal brinkmanship in less than three years. Lawmakers didn’t resolve any of their long-term divides and will have to return to the same issues over the next four months.
Posted on: Fri, 18 Oct 2013 08:42:26 +0000