Asia Stocks Track U.S. Rally as China Vows Support for Economyby
Indonesia, South Korea equity gauges at multi-year highs
Tencent set intraday record before declining in Hong Kong
Asian shares climbed for a fifth straight day as indexes in South Korea and Indonesia rose to multi-year highs amid easing geopolitical concerns and a pledge from China’s top leaders for financial support for the real economy.
The MSCI Asia Pacific Index advanced 0.5 percent to 149.57 as of 4:20 p.m. in Hong Kong, heading for its highest close since June 2015. Japan’s Topix climbed 1.2 percent, extending its longest rally of the year, while Hong Kong’s Hang Seng Index added 0.3 percent. South Korea’s Kospi gained 0.5 percent to its highest in almost six years, while Indonesia’s benchmark index reached a fresh record high.
Asian equities are continuing a global rally as China’s A-shares stabilize and the Nasdaq Composite Index surged past 6,000 for the first time on strong corporate earnings. A European stocks gauge held close to its highest level since August 2015 after centrist candidate Emmanuel Macron won the first round of French presidential elections.
“Investors are risk-on again as geopolitical tensions ease,” said Linus Yip, Hong Kong-based chief strategist at First Shanghai Securities.
China’s leaders said they will improve financial support for the real economy, according to the Xinhua News Agency, citing a statement issued after a Communist Party Politburo meeting chaired by President Xi Jinping. Growth accelerated in the first quarter on stronger domestic demand, while market sentiment is recovering, it said.
Tencent Holdings Ltd. dropped 0.5 percent after climbing to an all-time high in Hong Kong. Obic Co. surged 7.6 percent in Tokyo to a nine-month high as Nomura said it sees “buoyant” orders for the company.
- Shanghai Composite Index +0.2%; Shenzhen Composite +0.4%
- Hang Seng China Enterprises Index +0.2%
- Jakarta Composite Index +0.1%
- Taiwan’s Taiex +0.2%; Singapore’s Straits Times Index +0.3%
- Philippines PSEi +0.3%; Malaysia’s KLCI Index +0.1%, poised for highest close since May 2015; Thailand’s SET Index +0.2%; Vietnam Stock Index +0.4%
- India’s Sensex +0.6%, set for a record close