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Asia stocks trim gains but recovery hopes remain

Asia stocks trim gains but recovery hopes remain
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First Published: Tue, Aug 04 2009. 07 54 PM IST
Updated: Tue, Aug 04 2009. 07 54 PM IST
Hong Kong: Asian stocks hit an 11-month high on Tuesday before profit-taking pulled them back.
Still the market backdrop remained positive, and company results have been inspiring optimism, adding fuel to a rally that is into its fifth month.
“We’re seeing a lot of positive factors—good US indicators and solid Japanese earnings, both of which are boosting the Nikkei. But right now we’re also seeing a bit of natural reaction to these rises,” said Masayuki Kubota, a senior fund manager at Daiwa SB Investments in Tokyo.
Japan’s Nikkei share average edged up 0.2% to a 10-month high, driven by technology-related stocks. After the close, Toyota Motor Corp. posted its third straight quarterly loss, but gave an improved outlook based on deep cost reductions.
The MSCI index of Asia Pacific stocks outside Japan slid about 0.2% after earlier hitting its highest level since early September.
Since 9 March, when a global equity market rally began, the regional gauge has risen 75%, leading the world. Valuations have been ticking higher and earnings outlooks are uncertain, but so far investors have been comfortable paying what they view as a growth premium.
Hong Kong shares ended a three-day rally slightly lower, while financial stocks weighed on the Shanghai index, which closed up 0.3% at a 14-month closing high. Taiwan stocks fell 1.4%, their worst single-day percentage drop in at least three weeks, South Korean shares rose a shade while Singapore retreated 1.2%.
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First Published: Tue, Aug 04 2009. 07 54 PM IST
More Topics: Markets | MSCI Index | Japan | Nikkei | Stocks |