Asian Stocks Climb as China, South Korea Equities Extend Rally

  • Kospi index extends gain to a fresh record after BOK decision
  • Shanghai gauge rises most in seven weeks as financials surge

OPEC Said to Extend Oil Production Cuts for Nine Months

Asian stocks snapped a two-day slide as South Korea’s equities reached another record and China’s benchmark rose the most in seven weeks, spurring speculation state-backed funds were active in the market.

The MSCI Asia Pacific Index climbed 0.7 percent to 152.77 as of 5:12 p.m. in Hong Kong. Samsung Electronics Co. led gains in South Korea’s Kospi index after the Bank of Korea left its key interest rate unchanged. China’s Shanghai Composite Index rose 1.4 percent, buoyed by shares of financial firms. Japan’s Topix added 0.2 percent, while Taiwan’s Taiex closed at a 17-year high.

BHP Billiton Ltd. and Rio Tinto Ltd. paced gains in Australia’s benchmark equity index amid an earlier advance in crude oil. Energy ministers from OPEC and other major producing nations meeting in Vienna on Thursday may discuss an option to extend the nine-month extension to supply cuts for an extra three months, Russia’s energy minister said. Fed policy makers signaled they want more evidence that recent weakness in the U.S. economy was transitory before further removing monetary stimulus.

“A rally in oil prices will continue to bolster the earnings outlook of energy and material producers,” said Jitra Amornthum, the head of research at Finansia Syrus Securities Pcl. “The U.S. Fed minutes held little surprise and isn’t likely to trigger any reversal of funds inflows into Asian equities.”

Summary

  • Hong Kong HSI +0.8%, HSCEI +1.7%
  • South Korea’s Kospi +1.1%, Taiex +0.6%
  • Singapore’s Straits Times Index +0.1%, India’s Sensex +1.1%
  • Malaysia’s KLCI Index +0.2%, Philippine Stock Exchange Index +0.4%, Thailand’s SET Index +0.1%, Vietnam’s VN Index -0.1%
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