Asian Stocks Climb From $1.1 Trillion Slump on U.S. Data By Yoshiaki Nohara - Jun 14, 2013 8:13 AM GMT+0530 Facebook Share Tweet LinkedIn Google +1 13 COMMENTS Print QUEUE Q Asian stocks rebounded, after the regional benchmark index yesterday erased this year’s gain, as U.S. economic data beat estimates and on bets the Federal Reserve will keep its record stimulus. Japan’s Nikkei 225 Stock Average and the Hang Seng China Enterprises Index of mainland companies listed in Hong Kong rose after entering a bear market yesterday. Kawasaki Heavy Industries Ltd. (7012) rose 3.9 percent in Tokyo after removing its president and ending merger talks with Mitsui Engineering & Shipbuilding Co. (7003) Australian banks paced gains among financial shares. Enlarge image A visitor looks at an electronic board displaying stock figures at the Tokyo Stock Exchange in Tokyo on June 13, 2013. Photographer: Junko Kimura/Bloomberg The MSCI Asia Pacific Index rose 1.4 percent to 130.83 as of 11:29 a.m. in Tokyo and is up 0.4 percent this week. The gauge closed yesterday at the lowest since Dec. 27 and dropped more than 10 percent, erasing $1.06 trillion in value, since its 2013 high on May 20, meeting some traders’ definition of a correction. “You get good data plus reduced fear about a premature rate hike from the U.S. Federal Reserve, and that helped the U.S. share market and that’s helping Japanese and Asian markets today,” said Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd., which has $126 billion under management. “Look at the underlying global growth dynamics and they remain favorable.” Relative Value The Asia-Pacific measure traded at 12.5 times estimated earnings as of yesterday, compared with 14.8 times for the Standard & Poor’s 500 Index (SPX) and 12.9 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg. The MSCI Asia Pacific excluding Japan lost 11 percent through yesterday from this year’s high on May 9 on concern a pickup in the U.S. economy may prompt the Fed to taper stimulus. The gauge rose 0.7 percent today, paring this week’s drop to 2.2 percent. All 10 industry groups on the MSCI Asia Pacific Index advanced, led by consumer and utility shares, and about six shares gained for each that fell. Financial stocks contributed the most to today’s rally as Australian lenders gained. National Australia Bank Ltd., the nation’s fourth-biggest lender by market value, rose 3.5 percent to A$29.35. Westpac Banking Corp., the No. 2 lender, advanced 2.2 percent to A$28.79. U.S. Data Futures on the S&P 500 lost 0.2 percent after the gauge added 1.7 percent yesterday, the biggest gain since January, when reports showed retail sales climbed the most in three months and the number of claims for jobless benefits dropped by 12,000 last week. The Wall Street Journal reported that the Fed may “push back” on market expectations of higher interest rates. Japan’s Topix index gained 2.2 percent and the Nikkei 225 added 2.8 percent. South Korea’s Kospi index added 0.4 percent as the National Pension Service plans to allocate more funds to overseas equities as the country’s biggest investor seeks to boost returns. Bear Market The Hang Seng China Enterprises Index gained 1 percent after yesterday capping a 21 percent decline from this year’s high to enter a bear market. Hong Kong’s Hang Seng Index climbed 1.1 percent. The Shanghai Composite Index was little changed. Taiwan’s Taiex Index added 0.3 percent. Singapore’s Straits Times Index gained 0.9 percent. Australia’s S&P/ASX 200 rose 1.5 percent after entering a correction yesterday. New Zealand’s NZX 50 Index rose 0.5 percent in Wellington. Among stocks that fell, ASX Ltd. slumped 5.5 percent to A$33.36 in Sydney after the operator of Australia’s main stock exchange, completing the first round of A$553 million ($530 million) in capital raising.
Posted on: Fri, 14 Jun 2013 03:33:47 +0000
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