Asian shares buoyed by ECB easing hopes, BoJ hold lifts yen
Asian stocks advanced as technology and financial shares climbed ahead of a European Central Bank meeting. Chinese shares jumped the most in more than five years. Citic Securities Co. surged 6 percent in Hong Kong, pacing gains among Chinese brokerages. Air China Ltd. (753) jumped 7.4 percent after UBS AG called the stock its top pick among mainland carriers. Konami Corp. climbed 6.8 percent in Tokyo after Goldman Sachs Group Inc. raised its rating on the game developer. Newcrest Mining Ltd., Australia's largest gold producer, increased 4.1 percent as the price for the precious metal rose to a fivemonth high.
The MSCI Asia Pacific Index (MXAP) added 0.9 percent to 139.69 as of 4:11 p.m. in Hong Kong, heading for its highest close since Dec. 8. Investors are looking forward to ECB policy statement on Nov. 22 when President Mario Draghi will probably announce a 550 billion-euro ($635 billion) program of quantitative easing, according to a separate survey.
"ECB probably won't disappoint the market," Tim Radford, a strategist at Rivkin Securities in Sydney, said by phone. "We might see a stronger upside for equities if the ECB announces a biggerthan-expected QE. The rally in Chinese equities has been strong and it doesn't look like its abating given expectations of further monetary easing in China."
The Shanghai Composite Index jumped 4.7 percent, the biggest advance since October 2009, adding to yesterday's 1.8 percent gain. The gauge plunged by the most in six years on Monday as the nation's biggest brokerages were suspended from adding margin-trading accounts. The Hang Seng China Enterprises Index of mainland shares traded in Hong Kong increased 2.4 percent, while the benchmark Hang Seng Index added 1.7 percent.
China's world-beating stock rally is over, according to the latest Bloomberg Global Poll. Some 58 percent of the survey's 481 respondents said the Shanghai Composite Index will either decline or remain little changed over the next six months after a 55 percent advance since June. China's economic growth slowed to its weakest pace in 24 years and a realestate developer's failure to meet an interest payment is raising the specter of a pickup in debt defaults.
Index climbed 1.6 percent. New Zealand's NZX 50 Index and Taiwan's Taiex index each added 0.7 percent. Singapore's Straits Times Index gained 0.3 percent. South Korea's Kospi index rose 0.2 percent.
Japan's Topix index fell 0.5 percent as the yen strengthened as much as 1.2 percent against the dollar. The Bank of Japan today announced it would maintain its monetary policy of increasing the monetary base at an annual pace of 80 trillion yen ($674 billion), as forecast by all 33 economists surveyed by Bloomberg. The central bank extended a lending facility to 10 trillion yen from 7 trillion yen in a bid to stoke inflation. The Standard & Poor's 500 Index (SPX) slid less than 0.1 percent as U.S. markets reopened after being shut on Monday for a holiday. The Nasdaq 100 Index climbed 0.7 percent as gains from Apple Inc. to Netflix Inc. helped offset concerns global growth is slowing.
The International Monetary Fund yesterday made the steepest cut to its globalgrowth outlook in three years, with diminished expectations almost everywhere except the U.S. more than offsetting the boost to expansion from lower oil prices. Projections for the euro area, Japan, China and Latin America were trimmed.