Markets
Stocks in region continue uptrend
By Shani Raja (China Daily)
Updated: 2010-12-27 11:12
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SYDNEY - Asian stocks rose for the third week this month as a report showed US retail sales increased and China reported "concrete action" to help stabilize Europe's economy.
Canon Inc, which is the world's largest maker of cameras and gets more than a quarter of its sales from the US and almost a third from Europe, increased 3 percent in Tokyo last week. BHP Billiton Ltd, the world's biggest mining company and Australia's largest oil producer, climbed 2.2 percent in Sydney as metals prices rose. Posco, the world's No 2 producer of stainless steel, gained 1.3 percent in Seoul after MoneyToday said the company is considering an acquisition.
"All in all, stability - both economic and political - will always be well received by investors," said Prasad Patkar, who helps manage about $1.8 billion in Sydney at Platypus Asset Management Ltd "Markets are in a seasonally strong period, but volumes are thin, which is also typical for this time of the year."
The MSCI Asia Pacific Index climbed 1.2 percent to 135.19 last week. The gauge closed higher on three out of five days, and rose the most on Dec 21.
Japan's Nikkei 225 Stock Average dropped 0.2 percent. South Korea's Kospi index climbed 2 percent. Australia's S&P/ASX 200 Index gained 0.3 percent. Hong Kong's Hang Seng Index increased 0.5 percent, and the Shanghai Composite Index fell 2 percent.
Markets in Australia, Hong Kong and Singapore shut early on Friday for Christmas Eve.
Performance
The MSCI Asia Pacific Index has risen 12 percent this year on speculation that growth in corporate profits will weather Europe's debt crisis, Chinese steps to curb property-price inflation and concern about the pace of the US economic rebound.
Stocks in the gauge are valued at about 15 times estimated earnings on average, compared with 23 times at the start of the year. The index plunged 43 percent in 2008 and rebounded 34 percent last year, its biggest gain since 2003.
Canon climbed 3 percent to 4,270 yen ($51.67) in Tokyo. HTC Corp, the Taiwanese mobile phone maker that counts the United States as its biggest market, increased 3.2 percent to NT$900 ($30.33) in Taipei.
Same-store sales at a selection of US retailers rose 4.2 percent last week, the biggest jump of this holiday season, as more consumers finished shopping, according to a survey of retailers released on Dec 21.
'Concrete action'
"US economic indicators continue to exceed expectations and the US economy is on a recovery trend," said Hiroichi Nishi, an equities manager in Tokyo at Nikko Cordial Securities Inc. "The global economic recovery, surplus money and confidence in government measures are boosting commodity prices."
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The statement "should support risk appetite generally because Europe has been occupying the minds of investors for most of the year," said Platypus Asset's Patkar.
BHP Billiton advanced 2.2 percent to A$46.04 ($46.15) in Sydney. Rio Tinto Group, the world's third-biggest mining company, gained 0.8 percent to A$86.36. Mitsui & Co, which counts commodities as its biggest source of profit, gained 1.1 percent to 1,326 yen in Tokyo.
The London Metal Exchange Index of six metals including copper and aluminum gained 2.3 percent in the past five days for a fourth consecutive weekly climb.
In Seoul, Posco advanced 1.3 percent to 473,500 won ($426.15) last week. The company is considering buying a stake in Korea Express Co, an operator of ships, terminals and express-delivery trucks, MoneyToday reported, without citing anyone.
Bloomberg News