Asian stocks rose, with the regional benchmark index posting its seventh weekly advance, after the U.S. Congress passed legislation on a budget deal and manufacturing reports from China and the U.S. added to signs of a global recovery.
Li & Fung Ltd. (494), a supplier of toys and clothes to Wal-Mart Stores Inc., jumped 7.3 percent in Hong Kong. Rio Tinto Group, the world’s second-largest mining company that gets about 31 percent of sales from China, gained 3 percent in Sydney as Chinese manufacturing expanded for a third month. Fairfax Media Ltd. surged 14 percent amid speculation billionaire Gina Rinehart and investor John Singleton may seek control of the newspaper publisher.
The MSCI Asia Pacific Index gained 1.8 percent to 131.89 in its seventh weekly advance, the longest such winning streak since March last year. The Nikkei 225 Stock Average jumped 2.8 percent yesterday in Japan’s first trading day of the year, closing at the highest level since March 2011. The MSCI Asia Pacific Excluding Japan Index (MXAPJ) rose 2 percent this week.
“The global economic outlook is improving,” Shane Oliver, Sydney-based head of strategy at AMP Capital Investors Ltd., which has almost $130 billion under management, said. “That will underpin further gains in share markets along with very easy monetary conditions. That probability of the fiscal cliff and a U.S. recession has been taken out.”
Australia’s S&P/ASX 200 Index gained 1.1 percent this week. South Korea’s Kospi Index (KOSPI) added 0.8 percent. Taiwan’s Taiex Index rose 1.4 percent. Hong Kong’s Hang Seng Index climbed 2.9 percent.
China Recovery
The Shanghai Composite Index (SHCOMP) advanced 2 percent. A gauge of China’s manufacturing on Jan. 1 showed a third month of expansion in December, adding evidence that the recovery in the world’s second-biggest economy will extend into the new year. The nation’s services industries expanded at the fastest pace in four months, an index showed yesterday.
The regional benchmark MSCI Asia Pacific Index (MXAP) surged 14 percent in 2012 as central banks from the U.S., Europe, Japan and China took action to spur economic growth. The Asia Pacific gauge traded at 14.1 times average estimated earnings, compared with about 13.2 times for the Standard & Poor’s 500 Index and about 11.9 times for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.
Exporters advanced as manufacturing in the U.S., a major market for Asian companies from carmakers to electronics manufacturers, expanded in December. The U.S. Congress passed budget legislation, breaking a yearlong impasse over how to head off automatic tax increases and spending cuts. Failure to resolve the so-called fiscal cliff might have dragged the U.S. economy into a recession.http://www.bloomberg.com/news/2013-01-04/asian-stocks-post-seventh-weekly-gain-on-u-s-china-data.html
The Shanghai Composite Index (SHCOMP) advanced 2 percent. A gauge of China’s manufacturing on Jan. 1 showed a third month of expansion in December, adding evidence that the recovery in the world’s second-biggest economy will extend into the new year. The nation’s services industries expanded at the fastest pace in four months, an index showed yesterday.
The regional benchmark MSCI Asia Pacific Index (MXAP) surged 14 percent in 2012 as central banks from the U.S., Europe, Japan and China took action to spur economic growth. The Asia Pacific gauge traded at 14.1 times average estimated earnings, compared with about 13.2 times for the Standard & Poor’s 500 Index and about 11.9 times for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.
Exporters advanced as manufacturing in the U.S., a major market for Asian companies from carmakers to electronics manufacturers, expanded in December. The U.S. Congress passed budget legislation, breaking a yearlong impasse over how to head off automatic tax increases and spending cuts. Failure to resolve the so-called fiscal cliff might have dragged the U.S. economy into a recession.http://www.bloomberg.com/news/2013-01-04/asian-stocks-post-seventh-weekly-gain-on-u-s-china-data.html
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