The NASDAQ Composite’s record performance helped Taiwan stocks hit their highest close in more than seven and a half years Friday as the benchmark Taiex index ended one of its best weeks so far this year, while the recent rallies in Shanghai and Hong Kong showed signs of weakening.
In Japan, the Nikkei 225 dipped 167.61 points, or 0.8%, to end the week at 20,020.04
In Japan, trading interest was tepid ahead of a heavy slate of earnings results next week, and the Bank of Japan’s announcement on monetary policy.
In Hong Kong, the Hang Seng index hiked 233.28 points, or 0.8%, to 28,060.98.
In Hong Kong, much of the market’s 12.7% month-to-date gain has come from expectations that some Chinese stocks traded offshore deserve higher valuations after the Shanghai market’s strong run.
But investors have gotten more cautious given the weakening economy, including data Thursday showing Chinese manufacturing activity at a one-year low in April. The Hang Seng Index rose 1.5% this week
The NASDAQ’s record close Thursday helped the tech-heavy Taiex to a strong finish—it added 1.2% to 9,913.28 Friday and ended the week with a gain of 3.6%. Heavyweight Taiwan Semiconductor Manufacturing Co rose 2.4%. Some analysts said fund repatriation by Taiwanese who had invested overseas also contributed to the market’s advance.
Foreign investors’ net buying in Taiwan hit 46.5 billion New Taiwan dollars ($1.5 billion U.S.), making Friday the third-largest single day of net buying on record.
The index added to gains from Thursday, when hopes of a possible launch of a stock-trading link between Taiwan and Shanghai pushed shares higher. A similar program between Shanghai and Hong Kong last year has at different points spurred a rally in both markets.
Elsewhere, stocks marked a seventh straight winning week in Shanghai and a sixth straight winning week in Hong Kong. But, in both markets, investors appear more cautious.
CHINA
The Shanghai CSI 300 tumbled 38.25 points, or 0.8%, to 4,702.64
China’s securities regulator also said that it is increasing the pace of approvals for initial public offerings, a move that could hurt market liquidity. It said it would approve two batches of IPOs each month, from one batch currently.
The tax itself wouldn’t have amounted to much, but investors are worried about the Chinese government’s intentions for the market
In other markets
In Singapore, the Straits Times Index eked up 10.25 points, or 0.3%, to 3,513
The Kospi index in Korea slid 13.61 points, or 0.6%, to 2,159.80
In Taiwan, the Taiex index spiked 115.79 points, or 1.2%, to 9,913.28
In New Zealand, the NZX 50 moved higher 7.45 points, or 0.1%, to 5,765.36
In Australia, the S&P/ASX 200 jumped 88.52 points, or 1.5%, to 5,933.29
