Stocks in Japan and Australia led Asia higher for a second day on Friday, as investor confidence continued to be bolstered by expectations the U.S. is in no rush to raise interest rates.
In Japan, the Nikkei 225 leaped 411.35 points, or 2.4%, on top of yesterday’s near-400-point hike, to conclude the week 17,621.40
In Hong Kong, the Hang Seng index spiked 284.42 points, or 1.3%, to 23,116.63, after Thursday’s climb 246-point surge.
The U.S. dollar rose to ¥119.32, from ¥118.83 late Thursday in New York. Rising interest rates draw investors looking for bigger returns into dollar-denominated bonds, and a stronger dollar is often a boon for Japanese exporters who repatriate dollar earnings from overseas to home.
Materials and utilities stocks led in Australia, as the latest indications from the U.S. Fed appeared to overshadow concerns that lower commodities prices would pressure the nations’ producers.
For the week, Japan and Australia outperformed in the Asia-Pacific region, but Asia’s emerging markets — Vietnam and the Pakistan in particular — were battered by a combination of concerns that include the prospect of eventually tighter monetary policy in the U.S., and a bout of volatility in the region’s currencies.
Those worries were on display during an emerging market selloff earlier in the week.
Benchmark oil futures on the New York Mercantile Exchange traded at $54.72 U.S. a barrel late in the day in Asia, after touching $54.11 U.S., their lowest level in more than five years overnight. Most countries in Asia are net oil importers so lower oil prices are generally welcome news.
CHINA
Shanghai’s CSI 300 index regained 37.24 points, or 1.1%, to 3,383.17.
Stocks in the mainland, largely shielded from the worries abroad, jumped 5.8% this week, putting them up 23% since Nov. 21, when China’s central bank surprised markets with an interest-rate cut.
In other markets;
Singapore’s Straits Times Index added 35.88 points, or 1.1%, to 3,279.53
The Taiex index in Taiwan hiked 120.89 points, or 1.4%, to 8,999.52
Korea’s Kospi index moved higher 32.48 points, or 1.7%, to 1,929.98
New Zealand’s Exchange 50 inched up 9.27 points, or 0.2%, to 5,527.75
Australia’s S&P/ASX 200 spiked 127.87 points, or 2.5%, to 5,388.65
