China Stocks Pace Gains in Asia Before MSCI A-Share DecisionBy
MSCI decision on inclusion in global indexes expected Tuesday
Japanese exporters bolster Topix as yen weakens against dollar
Asian shares climbed as Chinese companies advanced in Hong Kong and Shanghai ahead of MSCI Inc.’s decision expected Tuesday on whether to add A-shares to its global indexes, while the weaker yen supported Japanese equities.
The MSCI Asia Pacific Index rose 0.6 percent to 155.18 as of 4:50 p.m. in Hong Kong. The Topix advanced 0.6 percent in Tokyo as Sony Corp. and NEC Corp. gained at least 1.8 percent, while the Hang Seng China Enterprises Index added 1.3 percent. A gauge of technology stocks climbed 1.2 percent as the region’s best-performing group, rebounding from its steepest weekly slide since November 11.
“Speculation on MSCI inclusion is boosting Chinese shares in the short term,” said Ronald Wan, chief executive at Partners Capital International Ltd. in Hong Kong. “Tech stocks are getting a short-term boost from the Hong Kong proposal to set up a new exchange.”
Malaysia became the only down market in Asia today, after foreign investors turned net sellers in the country last week, putting an end to an 18-week buying streak. The FTSE Bursa Malaysia KLCI Index dropped 0.3 percent.
China Evergrande Group jumped 7.8 percent in Hong Kong as government data showed new-home prices rising in 56 of 70 Chinese cities in May. Hengan International Group Co. rose 4.8 percent in Hong Kong, its biggest gain in four months, after CICC upgraded the stock to “buy”.
Foxconn Technology Co. jumped 6 percent ahead of its annual general meeting this week, for the third-best performance in the regional benchmark, following China Evergrande and Travelsky Technology’s 8.6 percent surge.
- Hang Seng Index +1.2%
- Shanghai Composite +0.7%, Shanghai Shenzhen CSI 300 +1%
- Nikkei 225 +0.6%
- South Korea’s Kospi +0.4%
- Taiwan’s Taiex +0.9%; Singapore’s Straits Times Index +0.4%
- Indonesia’s Jakarta Composite +0.1%; Philippines PSEi +0.8%
- Thailand’s SET Index +0.3%; Vietnam Stock Index +0.7%
- India’s Sensex +0.9%