Bulletin
Investor Alert

Asia Markets Archives | Email alerts

Sept. 14, 2012, 4:33 a.m. EDT

Asia stocks rally on Fed; S&P upgrade spurs Seoul

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    KOSPI Composite Index (180721)
  • X
    Hang Seng Index (HSI)

or Cancel Already have a watchlist? Log In

By Virginia Harrison and V. Phani Kumar, MarketWatch

HONG KONG (MarketWatch) — Asia shares posted a strong rally Friday after the Federal Reserve unveiled a fresh round of quantitative easing, with South Korean equities also getting a boost from a credit rating upgrade.

“This was what we expected, and in the short term, it’s good for the markets, but in the long term, inflation may be a problem” said Peter Lai, a director at DBS Vickers in Hong Kong, referring to the Fed’s decision to announce a third round of its quantitative easing program, or QE3, to support the U.S. economic recovery.

“It shows that the authorities will support the economy, and it gives investors confidence,” Lai said. Read analysis on what QE3 means for Asia.

The Kospi /zigman2/quotes/210598069/delayed KR:180721 -0.64%  jumped 2.9% in Seoul and Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI -1.60%  also climbed 2.9%, while Taiwan’s Taiex  added 2.1%.

Japan’s Nikkei Stock Average /zigman2/quotes/210597971/delayed JP:NIK -0.44%  advanced 1.8%, Australia’s S&P/ASX 200 index /zigman2/quotes/210598100/delayed AU:XJO -0.34%  gained 1.3% and China’s Shanghai Composite Index /zigman2/quotes/206600939/delayed CN:000001 -0.90%  added a more modest 0.6%.

The Shanghai index was also the only one among the six benchmark to end the week lower, with a mild 0.2% loss. The other markets jumped between 1.5% and 4.2%, with Taiex and Hang Seng tied at the top.

The gains came after the Fed said Thursday it would purchase $40 billion of mortgage-backed securities every month until the labor market improves. Interest-rate settings were kept at record lows, as expected, with the Fed extending the expected time frame for the ultra-loose rates to mid 2015. Read more on QE3.

“With a strong commitment from the Fed, progress in Europe and the passing of the U.S. election, the U.S. economy will have a pretty decent shot at achieving above-trend growth in 2013,” said Julia Coronado, an economist at BNP Paribas.

Click to Play

Why Asia tech firms didn't rally on iPhone 5 debut

Shares of Asian technology companies that make iPhone components didn't perform well Thursday, And there’s a reason for such a lackluster response to the iPhone 5.

Major movers

Among blue-chips making ground in Japan, Sony Corp. /zigman2/quotes/201361720/delayed JP:6758 -1.18%   /zigman2/quotes/208567357/composite SNE -1.40%  rising 3.5% and Canon Inc. /zigman2/quotes/207639533/delayed JP:7751 -1.55%   /zigman2/quotes/210242912/composite CAJ -0.70%  climbing 3.6%.  

Nintendo Co. /zigman2/quotes/208063194/delayed JP:7974 +1.85% /zigman2/quotes/201616881/delayed NTDOY +1.71%  put on 2.3% a day after launching its latest Wii videogame device. View a slideshow of Nintendo's new Wii.

Seven & I Holdings Co. /zigman2/quotes/207666111/delayed JP:3382 +0.36%   /zigman2/quotes/203868267/delayed SVNDF -2.04%  bucked the upbeat trend in Tokyo, dropping 2.4% after a Nikkei business daily report said the retailer is set to post its first drop in operating profit in three years. Read more on Seven & I Holdings.

Exporters bounced in Seoul as LG Display Co. /zigman2/quotes/204226570/delayed KR:034220 +1.07%   /zigman2/quotes/204466928/composite LPL -0.85%  climbed 4.8% and Samsung Electronics Co. /zigman2/quotes/209800866/delayed KR:005930 -1.48% /quotes/zigman/203012110/realtime SSNGY 0.00%  firmed by 2.7%.

Financials were also strong across Asia.

Mitsubishi UFJ Financial Group Inc. /zigman2/quotes/207520099/delayed JP:8306 -0.41% jumped 3.8% in Tokyo, while investment bank Macquarie Group Ltd. /zigman2/quotes/206727308/delayed AU:MQG -1.69%   /zigman2/quotes/209628452/delayed MQBKY -2.17%  added 2.5% in Sydney.

In Seoul, financial stocks were also bolstered by Standard & Poor’s upgrade of its long-term credit rating by one notch to A+, to reflect a “less negative assessment of the geopolitical risks on the Korean peninsula” after what it called was a smooth change of leadership in North Korea.

Shares of KB Financial Group Inc. /zigman2/quotes/200043823/composite KB -2.25%  jumped 4.3% and Hana Financial Group Inc. spiked 7.1%.

In Hong Kong, China Construction Bank Corp. /zigman2/quotes/208974133/delayed HK:939 -2.42%  rose 2.2% and China Life Insurance Co. /zigman2/quotes/202359856/delayed HK:2628 -4.40% /zigman2/quotes/206573290/composite LFC -3.83% rallied 4.3%.

Deutsche Bank strategist Esther Chwei named China Life her top pick among Chinese insurers, saying the fundamentals of the sector have improved and “favorable government policies, such as deferred tax annuity, should underpin medium-term growth.”

Expectations that the Fed’s monetary easing would boost commodity prices buoyed resource stocks.

In the energy sector, Inpex Corp. /zigman2/quotes/206689846/delayed JP:1605 -2.66% /zigman2/quotes/207958170/delayed IPXHY -0.33% rallied 5.9%, and Oil Search Ltd. /zigman2/quotes/204702973/delayed AU:OSH -2.03% /zigman2/quotes/205045633/delayed OISHY -1.46%  put on 1.6% in Sydney.

Oil futures jumped following the Fed’s stimulus plans, and as geopolitical tensions in the Mideast and Africa sparked supply fears. Read more on oil.

Gold prices also surged on the Fed’s stimulus moves, helping Australian gold major Newcrest Mining Ltd. /zigman2/quotes/203840223/delayed AU:NCM -1.47% /zigman2/quotes/203286036/delayed NCMGY -2.14% surge 7.3% in Sydney. Read more on gold futures.

Also in Sydney, shares of Fortescue Metals Group Ltd. /zigman2/quotes/202351558/delayed AU:FMG -2.21% /zigman2/quotes/207124211/delayed FSUGY -2.69%  were halted after a 14% slump on Thursday, amid discussions between the iron-ore miner and its lenders over debt restructuring. The company said it would make an announcement regarding its debt facilities by Tuesday.

/zigman2/quotes/210598069/delayed
KR : Korea Exchange
3,140.63
-20.21 -0.64%
Volume: 1.11M
Jan. 22, 2021 3:32p
loading...
/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
29,447.85
-479.91 -1.60%
Volume: 3.38M
Jan. 22, 2021 4:09p
loading...
/zigman2/quotes/210597971/delayed
add Add to watchlist JP:100000018
JP : Nikkei
28,631.45
-125.41 -0.44%
Volume: 0.00
Jan. 22, 2021 3:15p
loading...
/zigman2/quotes/210598100/delayed
AU : S&P ASX
6,800.40
-23.30 -0.34%
Volume: 619,201
Jan. 22, 2021 5:11p
loading...
/zigman2/quotes/206600939/delayed
CN : China: Shenzhen
¥ 22.03
-0.20 -0.90%
Volume: 92.44M
Jan. 22, 2021 3:00p
P/E Ratio
17.47
Dividend Yield
0.99%
Market Cap
¥427.51 billion
Rev. per Employee
¥6.12M
loading...
/zigman2/quotes/201361720/delayed
JP : Japan: Tokyo
¥ 10,480.00
-125.00 -1.18%
Volume: 3.68M
Jan. 22, 2021 3:00p
P/E Ratio
14.02
Dividend Yield
0.43%
Market Cap
¥12927.68 billion
Rev. per Employee
¥73.75M
loading...
/zigman2/quotes/208567357/composite
US : U.S.: NYSE
$ 101.11
-1.44 -1.40%
Volume: 759,939
Jan. 22, 2021 4:00p
P/E Ratio
14.49
Dividend Yield
0.35%
Market Cap
$124.54 billion
Rev. per Employee
$678,337
loading...
/zigman2/quotes/207639533/delayed
JP : Japan: Tokyo
¥ 2,192.00
-34.50 -1.55%
Volume: 3.34M
Jan. 22, 2021 3:00p
P/E Ratio
37.20
Dividend Yield
3.65%
Market Cap
¥2292.34 billion
Rev. per Employee
¥19.21M
loading...
/zigman2/quotes/210242912/composite
US : U.S.: NYSE
$ 21.17
-0.15 -0.70%
Volume: 130,015
Jan. 22, 2021 4:00p
P/E Ratio
38.90
Dividend Yield
4.45%
Market Cap
$22.08 billion
Rev. per Employee
$176,233
loading...
/zigman2/quotes/208063194/delayed
JP : Japan: Tokyo
¥ 63,920.00
+1,160 +1.85%
Volume: 1.36M
Jan. 22, 2021 3:00p
P/E Ratio
18.58
Dividend Yield
1.97%
Market Cap
¥7614.37 billion
Rev. per Employee
¥211.05M
loading...
/zigman2/quotes/201616881/delayed
US : U.S.: OTC
$ 77.49
+1.30 +1.71%
Volume: 503,111
Jan. 22, 2021 3:59p
P/E Ratio
19.42
Dividend Yield
1.27%
Market Cap
$73.36 billion
Rev. per Employee
$1.94M
loading...
/zigman2/quotes/207666111/delayed
JP : Japan: Tokyo
¥ 3,950.00
+14.00 +0.36%
Volume: 1.85M
Jan. 22, 2021 3:00p
P/E Ratio
19.46
Dividend Yield
2.49%
Market Cap
¥3487.68 billion
Rev. per Employee
¥116.02M
loading...
/zigman2/quotes/203868267/delayed
US : U.S.: OTC
$ 37.73
-0.79 -2.04%
Volume: 0.00
Jan. 21, 2021 5:20p
P/E Ratio
19.89
Dividend Yield
N/A
Market Cap
$33.56 billion
Rev. per Employee
$1.06M
loading...
/zigman2/quotes/204226570/delayed
KR : S. Korea: KRX
23,550.00
+250.00 +1.07%
Volume: 9.57M
Jan. 22, 2021 3:30p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
₩8426.56 billion
Rev. per Employee
₩880.39M
loading...
/zigman2/quotes/204466928/composite
US : U.S.: NYSE
$ 10.51
-0.09 -0.85%
Volume: 854,956
Jan. 22, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$7.64 billion
Rev. per Employee
$754,931
loading...
/zigman2/quotes/209800866/delayed
KR : S. Korea: KRX
86,800.00
-1,300 -1.48%
Volume: 30.86M
Jan. 22, 2021 3:30p
P/E Ratio
23.70
Dividend Yield
1.63%
Market Cap
₩582033.20 billion
Rev. per Employee
₩2.19B
loading...
/quotes/zigman/203012110/realtime
US : U.S.: OTC
$ 0.00
0.00 0.00%
Volume:
P/E Ratio
0.00
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
$1.88M
loading...
/zigman2/quotes/207520099/delayed
JP : Japan: Tokyo
¥ 483.00
-2.00 -0.41%
Volume: 51.62M
Jan. 22, 2021 3:00p
P/E Ratio
19.52
Dividend Yield
5.18%
Market Cap
¥6203.97 billion
Rev. per Employee
¥48.47M
loading...
/zigman2/quotes/206727308/delayed
AU : Australia: Sydney
$ 137.10
-2.35 -1.69%
Volume: 911,458
Jan. 22, 2021 4:10p
P/E Ratio
22.19
Dividend Yield
2.47%
Market Cap
$47.65 billion
Rev. per Employee
$1.01M
loading...
/zigman2/quotes/209628452/delayed
US : U.S.: OTC
$ 106.02
-2.35 -2.17%
Volume: 5,109
Jan. 22, 2021 3:45p
P/E Ratio
25.36
Dividend Yield
2.10%
Market Cap
$36.79 billion
Rev. per Employee
$685,026
loading...
/zigman2/quotes/200043823/composite
US : U.S.: NYSE
$ 39.88
-0.92 -2.25%
Volume: 102,820
Jan. 22, 2021 4:00p
P/E Ratio
5.52
Dividend Yield
3.67%
Market Cap
$15.56 billion
Rev. per Employee
$158.69M
loading...
/zigman2/quotes/208974133/delayed
HK : Hong Kong
HK$ 6.06
-0.15 -2.42%
Volume: 284.50M
Jan. 22, 2021 4:09p
P/E Ratio
5.52
Dividend Yield
5.77%
Market Cap
HK$1532.48 billion
Rev. per Employee
HK$3.58M
loading...
/zigman2/quotes/202359856/delayed
HK : Hong Kong
HK$ 17.40
-0.80 -4.40%
Volume: 98.68M
Jan. 22, 2021 4:09p
P/E Ratio
8.67
Dividend Yield
4.60%
Market Cap
HK$1076.99 billion
Rev. per Employee
HK$7.83M
loading...
/zigman2/quotes/206573290/composite
US : U.S.: NYSE
$ 11.31
-0.45 -3.83%
Volume: 338,156
Jan. 22, 2021 4:00p
P/E Ratio
9.44
Dividend Yield
3.93%
Market Cap
$138.92 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/206689846/delayed
JP : Japan: Tokyo
¥ 622.00
-17.00 -2.66%
Volume: 7.93M
Jan. 22, 2021 3:00p
P/E Ratio
N/A
Dividend Yield
3.86%
Market Cap
¥908.25 billion
Rev. per Employee
¥427.76M
loading...
/zigman2/quotes/207958170/delayed
US : U.S.: OTC
$ 5.99
-0.02 -0.33%
Volume: 837.00
Jan. 22, 2021 11:24a
P/E Ratio
N/A
Dividend Yield
3.31%
Market Cap
$8.75 billion
Rev. per Employee
$3.92M
loading...
/zigman2/quotes/204702973/delayed
AU : Australia: Sydney
$ 4.35
-0.09 -2.03%
Volume: 6.25M
Jan. 22, 2021 4:10p
P/E Ratio
N/A
Dividend Yield
3.25%
Market Cap
$9.04 billion
Rev. per Employee
$1.42M
loading...
/zigman2/quotes/205045633/delayed
US : U.S.: OTC
$ 16.91
-0.25 -1.46%
Volume: 133.00
Jan. 22, 2021 5:20p
P/E Ratio
N/A
Dividend Yield
2.57%
Market Cap
$6.98 billion
Rev. per Employee
$1.09M
loading...
/zigman2/quotes/203840223/delayed
AU : Australia: Sydney
$ 26.76
-0.40 -1.47%
Volume: 5.92M
Jan. 22, 2021 4:10p
P/E Ratio
21.46
Dividend Yield
1.34%
Market Cap
$21.79 billion
Rev. per Employee
$6.29M
loading...
/zigman2/quotes/203286036/delayed
US : U.S.: OTC
$ 20.59
-0.45 -2.14%
Volume: 21,401
Jan. 22, 2021 3:57p
P/E Ratio
24.80
Dividend Yield
1.07%
Market Cap
$16.82 billion
Rev. per Employee
$4.21M
loading...
/zigman2/quotes/202351558/delayed
AU : Australia: Sydney
$ 24.32
-0.55 -2.21%
Volume: 9.21M
Jan. 22, 2021 4:10p
P/E Ratio
10.65
Dividend Yield
7.24%
Market Cap
$74.85 billion
Rev. per Employee
$1.37M
loading...
/zigman2/quotes/207124211/delayed
US : U.S.: OTC
$ 37.48
-1.03 -2.69%
Volume: 38,152
Jan. 22, 2021 3:47p
P/E Ratio
12.24
Dividend Yield
6.16%
Market Cap
$57.79 billion
Rev. per Employee
N/A
loading...

Virginia Harrison is a MarketWatch reporter based in Sydney. Varahabhotla Phani Kumar is a reporter in MarketWatch's Hong Kong bureau.

This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »

Partner Center

World News from MarketWatch

Link to MarketWatch's Slice.