Asian Shares Extend Gains as Global Relief Offsets China Risksby
Chinese A-shares join rally, rebounding after Monday selloff
IG strategist says China deleveraging concerns to remain
Asian shares climbed for a fourth straight day, keeping a global equities rally intact, as investors shrugged off concerns over North Korea and China’s financial risks.
The MSCI Asia Pacific Index rose 0.7 percent to 148.83 as of 5:03 p.m. in Hong Kong, with technology, financial and industrial firms leading gains. Japan’s Topix and Hong Kong’s Hang Seng increased at least 1.1 percent after U.S. equities advanced the most in eight weeks.
Asian markets extended a global relief rally following the French election, while China’s domestic shares stabilized after a selloff amid tightened rules to cut leverage in the country’s financial system. The Shanghai Composite Index gained 0.2 percent after falling the most in four months yesterday. Investors played down North Korea’s show of military prowess on Tuesday amid a simmering crisis over the nation’s nuclear program.
"The rosy sentiment in the market could, however, be a short-term phenomenon," Jingyi Pan, a Singapore-based market strategist at IG Asia Pte Ltd., said in a note today, adding that concerns over China’s financial deleveraging "could remain despite an improving outlook on growth."
NEC Corp. jumped 3.5 percent in Tokyo, its biggest gain in five months, after reporting a preliminary 2016 profit that beat estimates. Yamato Holdings Co. rose 5.6 percent as the Nikkei newspaper said the company would raise delivery rates for retail consumers.
Bank of East Asia Ltd. advanced 3.1 percent in Hong Kong, while Industrial & Commercial Bank of China Ltd. added 2.2 percent.
- Hang Seng Index +1.3%; Hang Seng China Enterprises Index +1.6%
- South Korea’s Kospi +1.1%
- Taiwan’s Taiex +1.3%; Singapore’s Straits Times Index +0.6%
- The Philippines PSEi +1.5%; Malaysia’s KLCI Index +0.6%; Jakarta’s JCI Index +0.3%; Thailand’s SET Index -0.4%; Vietnam Stock Index -0.3%
- India’s Sensex Index +0.9%
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