Asian shares were up today on the second consecutive week. Built on their recent rally on Monday as worries about emerging markets continued to ebb, Asian stocks were faring better, particularly after the USD decline further. The upward movement of stocks across the region gave impetus to MSCI’s index of Asia-Pacific shares outside Japan.
There was a slight gain in Japan’s Nikkei N225 which went up despite appreciation in the value of the yen. It was possible because the regional sentiments are up this week. Today, it gained 0.5 percent despite data showing Japan’s economy grew just 0.3 percent in the fourth quarter of last year which when compared with the previous quarter is quite low.
On a brighter trading day today, Indian shares provisionally closed higher. Major gainers were stocks from the auto companies as the finance minister proposed excise duty cuts to boost sales hurt by a slowing economy. The India’s finance minister unveiled a restrained budget for the government’s remaining time in office through May.
Indian Stocks Up, Airtel to Buy Loop Mobile
As the government decided to narrow its fiscal deficit and pledged to keep government spending steady, market saw a boost and the benchmark BSE index provisionally ended 0.54 percent higher at 20,477.01. A similar trend was seen in the broader NSE index which closed up 0.51 percent at 6,079.05.
India which has a robust telecom economy will see a further buyout by the industry giant Bharti Airtel Ltd which will acquire Loop Mobile in a 7-billion-rupee deal. Though it is not yet announced, the deal will be on a slump sale basis. Bharti will get Loop’s 3 million subscribers and about 400 telecom towers and optic fiber and electronic equipment from Loop.
China Receives Better Bank Data
On the other hand, there was better news on China as according to the latest data collected banks there disbursed the highest volume of loans in any month in four years in January. This according to many analysts is a surge that suggests the world’s second-biggest economy may not be cooling as much as some fear.
The data show that Chinese banks made 1.32 trillion Yuan i.e. $218 billion worth of new Yuan loans in January. Thus, it is better than expected as it beat up a 1.1 trillion Yuan forecast and nearly three times December’s level which according to a better indication for investors who have been feeling disappointed.
To contact the reporter of this story: Jonathan Millet at email@example.com