Markets

Asian stocks up as market confidence rises

By Kana Nishizawa (China Daily)
Updated: 2011-04-25 10:32

TOKYO - Asian stocks rose for the fourth week in five as the United States housing starts gained and companies reported earnings that beat estimates, boosting confidence in global growth.

James Hardie Industries SE, the largest seller of home siding in the US, jumped 4.2 percent in Sydney. Hynix Semiconductor Inc, the second-largest computer memory chipmaker, surged 7.2 percent in Seoul. ZTE Corp, China's second-biggest maker of mobile-phone equipment, gained 2.5 percent after its first-quarter profit rose. Inpex Corp, Japan's largest oil and gas explorer, jumped 3.4 percent after commodity prices rose.

Related readings:  Hong Kong stocks close 0.67% higher Wednesday  Chinese stocks close higher Wednesday  China stocks up on S Korea  Stocks drop as IMF cuts US economic forecast

The MSCI Asia Pacific Index gained 2.2 percent to 138.83 last week, the biggest weekly gain since March. The gauge fell the previous week as China's inflation rose faster than estimated and the International Monetary Fund cut growth forecasts for the US and Japan.

"US companies, especially tech stocks, are doing well, and that's helping to instill confidence," said Mitsushige Akino, who oversees about $600 million in assets in Tokyo at Ichiyoshi Investment Management Co. "Investors are looking to take a little bit more risk."

Stock markets in Australia, Hong Kong, India, Indonesia, New Zealand, the Philippines, Singapore and Sri Lanka were closed on April 22 for holidays.

Singapore's Straits Times Index gained 1.3 percent, Japan's Nikkei 225 Stock Average increased 1 percent and Hong Kong's Hang Seng Index rose 0.5 percent. China's Shanghai Stock Exchange Composite Index slid 1.3 percent on concern the government will tighten monetary policy to rein in inflation.

James Hardie rose 4.2 percent to A$6.20 in Sydney after the US Commerce Department said housing starts increased 7.2 percent in March from the previous month. Work began on 549,000 homes, exceeding the 520,000 median forecast of economists surveyed by Bloomberg News.

Hynix Semiconductor surged 7.2 percent to 36,600 won last week in Seoul. Tokyo Electron Ltd, Japan's biggest producer of chipmaking equipment, jumped 5 percent to 4,605 yen in Tokyo. Foxconn Technology Co, which makes casings for Apple computers, surged 13 percent to NT$134 in Taipei.

China Unicom (Hong Kong) Ltd, the nation's second-largest mobile phone company, surged 7.5 percent to HK$16.12 in Hong Kong. China's newly added third-generation mobile phone users rose 27.5 percent in the first quarter compared with a year earlier, according to a statement from the Ministry of Industry and Information Technology.

ZTE gained 2.5 percent to HK$29.15 after reporting a 16 percent gain in first-quarter profit as sales of handsets increased in the US and Europe.

Bloomberg News