Asian shares buoyed by ECB eas­ing hopes, BoJ hold lifts yen

The Pak Banker - - INTERNATIONAL BUSINESS/SPORTS -

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.

Aus­tralia's S&P/ASX

200

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.

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