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Asian stocks rise as central banks pledge cash

Asian stocks rise as central banks pledge cash
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First Published: Tue, Aug 14 2007. 12 57 AM IST
Updated: Tue, Aug 14 2007. 12 57 AM IST
Asian stocks rose on Monday, following their biggest drop in five months, as the region’s central banks moved to ease a credit crunch sparked by losses on higher risk mortgages. Central banks in South Korea, the Philippines, Singapore, Indonesia, India and Malaysia have said they were prepared to add cash into their financial systems. South Korea’s Kookmin Bank and National Australia Bank Ltd, the two nations’ biggest lenders, rose. Kookmin Bank added 3.5%, to 74,500 won (Rs3,278). National Australia rose 2.6%, to A$39.23 (Rs1,347).
“I don’t think the risk aversion will feed on itself,” said Leo Krippner, head of investment strategy at AMP Capital Investors (NZ) Ltd, which manages $7.3 billion (Rs29,711 crore) in assets. “Central banks have shown they are prepared to step in. For us, the global economy is still rolling along OK,” he added.
BHP Billiton Ltd, the world’s largest mining company, advanced after it announced plans to explore natural liquefied gas with Exxon Mobil Corp.Taiwan Semiconductor Manufacturing Co., the world’s biggest supplier of made-to-order chips, and Hon Hai Precision Industry Co. climbed after reporting higher July sales.
The Morgan Stanley Capital International Asia-Pacific Index added 0.2%, to 149.45, in Tokyo. It had dropped 3% on 10 August, the most since 5 March, to close at its lowest in more than two months.
Japan’s Nikkei 225 Stock Average advanced 0.2% to 16,800.05. It earlier fell 0.2%, after a government report? showed the economy grew at a slower pace last quarter.
China’s CSI 300 Index fell 0.1%. Kweichow Moutai Co. Ltd dropped on concerns that costs will rise after a government report showed inflation accelerated. Australia’s S&P/ASX Index added 1.3%, the region’s biggest gain. Thailand’s market was closed on Monday. Losses tied to higher risk mortgages sparked a global equities sell-off that’s erased more than $3.3 trillion of market value globally.
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First Published: Tue, Aug 14 2007. 12 57 AM IST