Asian Stocks Extend Rally as Chinese Automakers Lead AdvanceBy
President Chain Store closes at new high on record dividend
Kumho Petrochemical jumps on rising tire rubber prices
Asian shares rose for a second day after U.S. stocks gained amid expectations the Federal Reserve will maintain a slow pace of rate hikes.
The MSCI Asia Pacific Index advanced 0.8 percent to 179.57 as of 4:43 p.m. in Hong Kong, heading for a three-week high. Japan’s Topix gained 0.8 percent, with telecommunications and drugmakers providing the biggest boosts. Australia’s S&P/ASX 200 added 0.7 percent, while Hong Kong’s Hang Seng Index rose 0.7 percent.
“Stocks are following a U.S. rebound from levels that were highly oversold by technical indicators,” said Hao Hong, chief strategist at Bocom International Holdings Co. in Hong Kong. “Rate hikes are not taking place as fast as some feared.”
Asia stocks steadily recovered from losses seen earlier this month, as traders assessed global monetary policies for more clues on the region’s liquidity. Traders are waiting for Fed Chairman Jerome Powell’s speech and Bank of Korea’s policy decision, both on Tuesday.
Great Wall Motor Co. jumped 4.6 percent in Hong Kong as BMW AG agreed to make electric Minis with the Chinese company. Geely Automobile Holdings Ltd. surged 6.5 percent after Chairman Li Shufu became the top shareholder of Germany’s Daimler AG.
President Chain Store Corp. surged 5.8 percent in Taiwan, to close at a new high, after the board proposed a record dividend. Kumho Petrochemical Co. climbed 4.7 percent in Seoul as prices for styrene-butadiene rubber jumped amid rising demand from China.
- Nikkei 225 +1.2%
- Hang Seng China Enterprises Index +0.8%, Shanghai Composite Index +1.2%
- Taiex +0.4%
- Kospi 200 +0.2%
- New Zealand’s S&P/NZX 50 +0.5%
- Sensex +0.9%; Nifty 50 +0.9%
- Straits Times Index +0.7%, Malaysia’s KLCI little changed, Jakarta Composite Index -0.9%, Philippine Stock Exchange PSEi Index +0.4%, Thailand’s SET Index +0.9%, Vietnam’s VN Index +1.1%