Asian stocks outside Japan rise as investors weigh US shutdown: TOKYO, Oct 2 — Asian stocks outside Japan rose as investors speculated economic effects would be limited from the first partial US government shutdown in 17 years. Japanese shares fell. Samsung Electronics Co gained 2.6 per cent in Seoul after the consumer-electronics maker said third-quarter earnings will improve at its mobile unit. Paladin Energy Ltd soared 10 per cent in Sydney as the uranium explorer reported it is cutting costs. Hutchison Whampoa, controlled by Li Ka-shing, added 3.2 per cent on a report it may seek to raise US$10 billion (RM32.4 billion) spinning off its Watsons retail arm. Nissan Motor Co, a carmaker that gets about 80 per cent of its revenue outside Japan, dropped 1 per cent as the yen gained. The MSCI Asia Pacific excluding Japan Index rose 0.4 per cent to 462.55 as of 3:24 p.m. in Tokyo. The MSCI Asia Pacific Index that includes Japanese shares slipped 0.3 per cent to 138.46. The US government is in partial shutdown after lawmakers failed to agree on a federal budget. Congress also faces a dispute over raising the US$16.7 trillion debt limit this month. “People see this is a short-term impact, but the key question is around the debt ceiling and that’s what people are looking forward to,” said Chris Weston, chief market strategist at IG Markets Ltd in Melbourne. “If you take away the US fiscal position, then equity appreciation is still very strong.” Japan’s Topix index fell 1.5 per cent. Prime Minister Shinzo Abe yesterday unveiled a ¥5 trillion (RM165 billion) stimulus package to cushion the first sales-tax increase since 1997. Regional gauges Japanese exporters dropped as the yen maintained yesterday’s advance against the dollar, weighing on their offshore earnings outlook. Nissan slid 1 per cent to 982 yen and Komatsu Ltd, a maker of construction equipment that gets about 30 per cent of its revenue in the Americas, lost 2 per cent to 2,359 yen. Australia’s S&P/ASX 200 Index rose 0.2 per cent and New Zealand’s NZX 50 Index added 0.5 per cent. South Korea’s Kospi index was little changed. Hong Kong’s Hang Seng Index jumped 0.9 per cent following a public holiday yesterday. Markets are closed in China for holidays until October 8. Singapore’s Straits Times Index fell 0.2 per cent, while Taiwan’s Taiex index advanced 0.4 per cent. Futures on the Standard & Poor’s 500 Index fell 0.3 per cent today after the measure gained 0.8 per cent yesterday. The US government began its first partial shutdown in 17 years yesterday as Republicans and Democrats remained at odds over whether to tie any changes to the 2010 Affordable Care Act to a short-term extension of government funding. As many as 800,000 federal employees were out of work, while some services were halted. Shutdown costs Closing down parts of the government will cost the US at least US$300 million a day in lost economic output at the start, according to IHS Inc, with effects increasing if a prolonged impasse dents consumer and business confidence. The MSCI Asia Pacific Index rose 6.4 per cent in September, the biggest monthly advance since January 2012. The measure traded at 13.5 times estimated earnings as of yesterday, compared with 15.4 for the S&P 500 and 14.2 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg. Samsung rises Samsung Electronics gained 2.6 per cent to 1,418,000 won in Seoul after the Korea Economic Daily reported the company’s telecommunication business earnings will be better than in the second quarter, citing JK Shin, head of mobile business. Samsung spokeswoman Chenny Kim confirmed Shin’s comments. Paladin surged 10 per cent to 53 Australian cents after reporting cost cuts including a 10 per cent reduction in board and management base salaries. Hutchison Whampoa increased 3.2 per cent to HK$95.90 to lead the Hang Seng Index higher. The company may list Watsons on the Hong Kong’s exchange within the next 12 to 18 months, according to a Hong Kong Economic Times report citing unidentified people. Among other stocks that rose, SoftBank Corp, a Japanese mobile phone operator, advanced 4 per cent to 7,240 yen after Goldman Sachs Group Inc said new iPhone sales at competitor NTT DoCoMo Inc may be more affected by inventory shortages than at other Japanese carriers. — Bloomberg dlvr.it/4447wR
Posted on: Wed, 02 Oct 2013 07:04:37 +0000
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