Asian stocks rose this week, with the regional benchmark index posting its biggest weekly advance since April, as data from China, Europe and the US boosted optimism the global economy is recovering.
Honda Motor Co, which gets about 83 per cent of sales outside Japan, jumped 6.8 per cent in Tokyo. China Cosco Holdings Co climbed 9.8 per cent in Hong Kong, pacing gains among the region's shipping companies after a gauge of cargo rates increased to a 21-month high. Billabong International Ltd rose 4.7 per cent after the Australian surfwear company said Coastal Capital International Ltd is seeking a board shakeup.
The MSCI Asia Pacific Index advanced 2.8 per cent to 133.76 this week after declining in three of the past four. Shares in China and Hong Kong led the advance after reports showed a gauge of Chinese manufacturing increased to a 16-month high and the nation's services industry expanded. US service industries grew in August at the fastest pace in almost eight years.
"The market rebounded as we are getting improving economic data," said Nader Naeimi, Sydney-based head of dynamic asset allocation at AMP Capital Investors Ltd, which manages more than $130 billion. "With that improvement in economic data, we've seen a surge in bond yields and that's bad for emerging markets with high current account deficits. Given this, the volatility in the equity market is likely to remain high."Yields on 10-year US treasuries rose to a two-year high of 3.005 per cent in New York after a report of slower-than-forecast jobs growth eased concern the Federal Reserve will cut stimulus.
Fed tapering
The Fed has said any reduction in stimulus will be tied to a sustained recovery in the US economy. US payrolls rose by 169,000 last month, less than the 180,000 estimate in a Bloomberg survey of economists and easing concern about the size of potential cuts to Fed bond purchases when policy makers meet September 17-18.
Hong Kong's Hang Seng Index climbed 4.1 per cent, the most since September 2012. China's Shanghai Composite Index rose two per cent, extending gains for a second week. Taiwan's Taiex index advanced 1.8 per cent.
Japan's Topix index jumped 3.8 per cent this week as the Japanese yen weakened. South Korea's Kospi index gained 1.5 per cent. Singapore's Straits Times Index added 0.6 per cent. New Zealand's NZX 50 Index rose 1.2 per cent. Australia's S&P/ASX 200 Index climbed 0.2 per cent ahead of this weekend's election, which polls indicate will see Prime Minister Kevin Rudd's minority Labor government lose to Tony Abbott's Liberal-National coalition.
