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Asian Stocks Rise to 10-Week High as US, European Data Improve

Strategic Insights

— 1 min read

Asian stocks rebounded on Monday, with the MSCI Asia Pacific Index reaching its highest level in 10 weeks, following improved economic data in the US and Europe. The index rose 0.7 percent in Tokyo, with key contributors including Canon Inc., Sony Corp., and Mitsubishi Corp. The gains were driven by increased US consumer spending and improved European confidence in the economic outlook. Market analysts expressed caution regarding structural issues, but overall sentiment remained bullish.

Key Takeaways:

  • The MSCI Asia Pacific Index rose 0.7 percent to 125.83, its highest level since January 18, driven by improved US consumer spending and European economic confidence.
  • The index has climbed 10 percent from its lowest level in more than two months, with a Federal Reserve pledge to keep borrowing costs low and a Japanese bank-lending program easing concerns about budget deficits in Europe.
  • Leading contributors to the gains included Canon Inc., which rose 1.7 percent in Tokyo, and Sony Corp., which climbed 1.3 percent.
  • Mitsubishi Corp., Japan's largest commodities trader, and BHP Billiton Ltd., the world's No. 1 mining company, rose more than 1 percent after oil and metal prices climbed.
  • The Nikkei 225 Stock Average gained 0.5 percent, set for its highest close since October 2008, with Japan's jobless rate holding at the lowest in about a year.
  • The Kospi Index in South Korea climbed 0.4 percent, while Australia's S&P/ASX 200 Index rose 0.2 percent.

Statistics:

  • The MSCI Asia Pacific Index rose 0.7 percent to 125.83.
  • The index has climbed 10 percent from its lowest level in more than two months.
  • US consumer spending increased 0.4 percent in January and 0.3 percent in February.
  • Executive and consumer sentiment in the 16 nations using the euro rose to the highest level in almost two years in March.
  • Stocks in the Asian benchmark are valued at 19.2 times estimated earnings.

Sources:

  • Bloomberg
  • Euclid Infotech Pvt. Ltd.
  • Standard & Poor's 500 Index
  • European Commission
  • Colonial First State Global Asset Management
  • SMBC Friend Securities Co.
  • Sydney-based head of investment-markets research at Colonial First State Global Asset Management, Stephen Halmarick.
  • Tokyo-based strategist at SMBC Friend Securities Co., Fumiyuki Nakanishi.

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