SYDNEY, Sept 20 — Asian stocks traded near a four-month high as a weaker yen boosted Japanese exporters, while Indian stocks fell after the central bank unexpectedly raised its key interest rate.
The MSCI Asia Pacific Index was little changed at 141.07 as of 2:51 p.m. in Tokyo, with the regional benchmark index on course for its biggest three-week gain in two years. The measure climbed 2.9 per cent this week through yesterday after the Federal Reserve unexpectedly refrained from reducing stimulus measures, saying it wants more evidence of an economic recovery before paring its US$85 billion (RM274.9 billion) a month in bond purchases. A Bloomberg survey of economists had forecast a US$5 billion reduction.
“The dollar will strengthen against the yen in the long run on the US economic recovery, which is good for Japanese stocks,” said Juichi Wako, a Tokyo-based equity market strategist at Nomura Securities Co., the nation’s biggest brokerage. “It’s a matter of when the Federal Reserve will start tapering its stimulus.”
Regional gauges
Japan’s Topix index gained 0.1 per cent. Australia’s S&P/ASX 200 Index declined 0.4 per cent, retreating from a five-year high. New Zealand’s NZX 50 Index lost 0.5 per cent, retreating from a record high. Singapore’s Straits Times Index fell 0.4 per cent. India’s S&P BSE Sensex Index slumped 2.2 per cent. Futures on the Standard & Poor’s 500 Index slipped 0.1 per cent.
Markets in Hong Kong, China, South Korea and Taiwan are shut for holidays.
The Asia-Pacific gauge rallied 9.1 per cent this year through yesterday amid signs China’s economic growth is stabilising. The gauge yesterday traded at 13.8 times estimated earnings, compared with a multiple of 15.6 for the S&P 500 and 14.4 times for the Stoxx Europe 600 Index, data compiled by Bloomberg show.
Japan’s Topix climbed 41 per cent this year through yesterday, the most among developed markets, amid optimism Prime Minister Shinzo Abe and the Bank of Japan can lead the country out of deflation through unprecedented monetary easing. About ¥13 trillion (RM424.8 billion) was added to the market capitalisation of the Topix last week, according to data compiled by Bloomberg, after the city was selected to host the 2020 Olympic Games.
Tokyo land
Land prices in Japan’s three largest cities rose for the first time in five years, signalling a return of confidence among homebuyers and investors. The average price of land in Tokyo, Osaka and Nagoya gained 0.1 per cent as of July 1, compared with a 1 per cent drop a year earlier, the Ministry of Land, Infrastructure, Transport and Tourism said in a report today.
“Things are picking up and companies are more confident about the future” in Japan, Clay Carter, head of international equities at Perennial Value Management Ltd. in Sydney, told Bloomberg TV. “We’re overweight Japan and confident on Japan, but not wildly bullish. The confidence that companies have about the medium term is a positive for us. We want to see that in the earnings numbers and the macro-economic numbers that will be coming out in the next three months.”
Exporters in Japan climbed after the yen fell 1.5 per cent against the dollar yesterday. Nikon soared 6.2 per cent to ¥1,806. Toyota Motor Corp. Asia’s largest carmaker, gained 1.1 per cent to ¥6,470.
Shiseido gained 6 per cent to ¥1,727 after Citigroup analysts upgraded the shares to buy from sell.
India increased its benchmark repurchase rate raised by 25 basis points. All 36 analysts surveyed by Bloomberg forecast it to remain unchanged. State Bank of India lost 4.8 per cent to 1,721.25 rupees. ICICI Bank Ltd. declined 5.8 per cent to 976.20 rupees.
The Bloomberg China-US Equity Index of the most-traded Chinese stocks in New York closed little changed yesterday, on track for a third weekly advance. — Bloomberg
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