Asia Stocks Rise to 10-Year High on Strong Earnings, Fed Signal

  • Sunac paces advances in China-related property shares
  • Nintendo climbs as earnings beat on Switch software sales

Noble shares are plunging in Singapore after warning of losses of around $1.8B in 2Q. Bloomberg's James Poole reports on 'Bloomberg Markets: Asia (Source: Bloomberg)

Asian shares rose to the highest level since December 2007 on strong earnings from some of the region’s key companies and the Federal Reserve’s signal that inflation remains persistently below its target.

The MSCI Asia Pacific Index climbed 1 percent, the most since June 2, to 160.81 as of 4:47 p.m. in Hong Kong, with all of its sector gauges rising. The Bloomberg Dollar Spot Index extended losses after the Fed held rates steady and indicated it would start unwinding its balance sheet “relatively soon.”

"Investors are cheering a slower pace at which the Fed may unwind its balance sheet," Nelson Yan, a Hong Kong-based executive director at CCB Securities Ltd. "The rally will likely continue into the fourth quarter as long as inflation stays mild."

China Evergrande Group became the biggest gainer on the Asian benchmark with a 14 percent rise, a day after surging 18 percent on a positive profit outlook. PetroChina Co. advanced 0.4 percent in Hong Kong as oil held above $48 a barrel.

Japan’s Topix climbed as electronics-related shares advanced on earnings optimism. Nintendo Co. shares surged 7.6 percent after the company surprised investors with a big jump in quarterly profit, driven by software sales for its new Switch console. Samsung Electronics Co. rose as much as 1.6 percent before erasing gains, as profit and sales beat estimates with the success of its new Galaxy S8 smartphones.


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