Today is a bright trading day in the Asian stock market wherein except for Japan; almost all regional markets are moving up. Moreover, with the regional benchmark gauge rallying for a sixth day today, investors are willing to take risk in Asian stocks. The development is attributed to the fact that the data showed the U.S. economic recovery is gaining momentum.
Asian market got a boost from China’s central bank’s decision to ease a cash crunch by injecting fifty billion dollars. The major gainer in today’s trade was Techtronic Industries Co., a power-tool maker that gets 73 percent of sales from North America. The shares of the company climbed 3.4 percent in Hong Kong after U.S. consumer spending rose.
Another major gainer in today’s trading was the Agricultural Bank of China Ltd. This bank is China’s third-biggest lender and on the brighter trading day it gained 1.3 percent. Whereas Japan’s Nikkei 225 Stock Average pared gains to 0.1 percent, the MSCI Asia Pacific Excluding Japan Index advanced 0.4 percent to 463.87 as of 2:10 p.m. in Hong Kong.
Mitsubishi Motors Corp. was another major gainer whose stocks jumped 4.3 percent after the Japanese carmaker raised its operating-profit forecast. Despite some Japanese companies gaining today, Japan’s Topix (TPX) index fell 0.3 percent. A major reason behind the fall is that the country’s markets reopened from a holiday.
Other Regional Markets
Most of the Asian stock markets were up today. Whereas South Korea’s Kospi index advanced 0.2 percent, the Hang Seng China Enterprises Index (HSCEI) also went up. The better trading was seen in Hong Kong’s Hang Seng Index that gained 1.1 percent. However, China’s Shanghai Composite Index fell 0.1 percent even on a brighter trading day.
Some other markets that were up today were Australia, Singapore, and New Zealand. Whereas Australia’s S&P/ASX 200 Index rose 0.7 percent, New Zealand’s NZX 50 Index also gained 1 percent. A similar pattern was seen in Singapore’s Straits Times Index which rose 0.4 percent. However, Taiwan’s Taiex Index lost 0.1 percent.
Mitsubishi Motors Major Gainer
The largest gain came for Mitsubishi Motors which added 4.3 percent to 1,099 yen after raising its full-year net-income forecast 43 percent to 100 billion yen. The company according to an official source benefited from a weaker yen, cost cuts and a review of corporate taxes. Weak yen gave impetus to exports and helped it to earn higher returns.
To contact the reporter of this story: Jonathan Millet at email@example.com