Asian stocks swung between gains and losses as Japanese shares jumped after a party that backs more economic stimulus returned to power. Suppliers to Apple Inc. dropped in Taiwan.
Nissan Motor Co. (7201), Japan’s second-largest carmaker by revenue, rose 2.2 percent as the yen slid to the lowest since April 2011 against the dollar. Fairfax Media Ltd., Australia’s second-biggest newspaper company, rose 3.9 percent after selling its remaining 51 percent stake in Trade Me Ltd., a New Zealand online auction site. Asahi Glass Co. (5201) dropped 2.5 percent in Tokyo after the Nikkei newspaper said the glass manufacturer is likely to miss its profit forecast.
The MSCI Asia Pacific Index added 0.1 percent to 127.56 as of 11:31 a.m. in Tokyo after rising and falling as much as 0.3 percent. The measure capped a 12-day rally on Dec. 14, the longest winning streak since January 2004. The MSCI Asia Pacific excluding Japan Index fell 0.2 percent to 464.37.
Following the Japanese election, “people would expect more fiscal action from the new administration and they may try to make their currency more competitive,” said Tim Leung, a portfolio manager who helps manage about $1.5 billion at IG Investment Ltd. in Hong Kong. “The market in the Asia Pacific region has had a pretty good rally. It’s good, but we are not talking about the market moving into a very good valuation yet.”
The 14-day relative strength index of the MSCI Asia Pacific Index climbed to 77 on Dec. 14, rising above the 70 threshold that some traders say signals equities are overheating.
Asia’s benchmark equities index rose almost 12 percent this year as of Dec. 14 as central banks from the U.S., Europe, Japan and China took action to spur economic growth. The gauge traded at 14.4 times average estimated earnings as of Dec. 14, compared with 13.6 for the Standard & Poor’s 500 Index and 12.7 times for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.
Japan’s Nikkei 225 Stock Average rose 1.6 percent, heading for the highest close since April, after the Liberal Democratic Party reclaimed power in a landslide victory.
Australia’s S&P/ASX 200 slid 0.2 percent and New Zealand’s NZX 50 Index fell 0.2 percent. South Korea’s Kospi Index dropped 0.1 percent. Hong Kong’s Hang Seng Index fell less than 0.1 percent. The Shanghai Composite Index rose 0.7 percent. Singapore’s Straits Times Index was little changed.
Taiwan’s Taiex Index (TWSE) dropped 0.8 percent as Apple suppliers Hon Hai Precision Industry Co. and Largan Precision Co. each fell more than 4.5 percent.
Futures on the S&P 500 index added 0.5 percent today. The gauge dropped 0.4 percent on Dec. 14 as budget talks overshadowed the Federal Reserve’s plan to expand bond purchases and better-than- estimated economic data.
President Barack Obama and Republican House Speaker John Boehner remained deadlocked during their third White House meeting on next year’s budget. More than $600 billion in tax increases and spending cuts are scheduled to start in January unless Congress acts to avert them.
To contact the reporter on this story: Yoshiaki Nohara in Tokyo at [email protected]
To contact the editor responsible for this story: Nick Gentle at [email protected]
Nissan Motor Co. (7201), Japan’s second-largest carmaker by revenue, rose 2.2 percent as the yen slid to the lowest since April 2011 against the dollar. Fairfax Media Ltd., Australia’s second-biggest newspaper company, rose 3.9 percent after selling its remaining 51 percent stake in Trade Me Ltd., a New Zealand online auction site. Asahi Glass Co. (5201) dropped 2.5 percent in Tokyo after the Nikkei newspaper said the glass manufacturer is likely to miss its profit forecast.
The MSCI Asia Pacific Index added 0.1 percent to 127.56 as of 11:31 a.m. in Tokyo after rising and falling as much as 0.3 percent. The measure capped a 12-day rally on Dec. 14, the longest winning streak since January 2004. The MSCI Asia Pacific excluding Japan Index fell 0.2 percent to 464.37.
Following the Japanese election, “people would expect more fiscal action from the new administration and they may try to make their currency more competitive,” said Tim Leung, a portfolio manager who helps manage about $1.5 billion at IG Investment Ltd. in Hong Kong. “The market in the Asia Pacific region has had a pretty good rally. It’s good, but we are not talking about the market moving into a very good valuation yet.”
The 14-day relative strength index of the MSCI Asia Pacific Index climbed to 77 on Dec. 14, rising above the 70 threshold that some traders say signals equities are overheating.
Asia’s benchmark equities index rose almost 12 percent this year as of Dec. 14 as central banks from the U.S., Europe, Japan and China took action to spur economic growth. The gauge traded at 14.4 times average estimated earnings as of Dec. 14, compared with 13.6 for the Standard & Poor’s 500 Index and 12.7 times for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.
Japan’s Nikkei 225 Stock Average rose 1.6 percent, heading for the highest close since April, after the Liberal Democratic Party reclaimed power in a landslide victory.
Australia’s S&P/ASX 200 slid 0.2 percent and New Zealand’s NZX 50 Index fell 0.2 percent. South Korea’s Kospi Index dropped 0.1 percent. Hong Kong’s Hang Seng Index fell less than 0.1 percent. The Shanghai Composite Index rose 0.7 percent. Singapore’s Straits Times Index was little changed.
Taiwan’s Taiex Index (TWSE) dropped 0.8 percent as Apple suppliers Hon Hai Precision Industry Co. and Largan Precision Co. each fell more than 4.5 percent.
Futures on the S&P 500 index added 0.5 percent today. The gauge dropped 0.4 percent on Dec. 14 as budget talks overshadowed the Federal Reserve’s plan to expand bond purchases and better-than- estimated economic data.
President Barack Obama and Republican House Speaker John Boehner remained deadlocked during their third White House meeting on next year’s budget. More than $600 billion in tax increases and spending cuts are scheduled to start in January unless Congress acts to avert them.
To contact the reporter on this story: Yoshiaki Nohara in Tokyo at [email protected]
To contact the editor responsible for this story: Nick Gentle at [email protected]