Asian stocks climbed, led by commodity companies amid a rally in iron ore prices and as technology firms advanced with Nasdaq 100 Index futures. Malaysia’s ringgit strengthened as US crude oil headed for a sixth straight weekly increase.
The MSCI Asia Pacific Index added 0.4% by 11:02 am in Tokyo, rising a fourth day, as BHP Billiton Ltd. rose 2.6% and Taiwan Semiconductor Manufacturing Co. increased 3.4%. Nasdaq 100 futures rose 0.3% following after- market gains in Google Inc. and Microsoft Corp. The ringgit climbed 0.7% against the dollar as US crude headed for a 3.1% weekly climb.
Resources companies have helped lead gains in Asia this week after iron ore joined oil in rebounding from a more-than 50% slide in the past year. The Nasdaq Composite Index topped its dot-com era high on Thursday as US shares shrugged off mixed earnings and weak factory reports. Investors will weigh US durable goods orders data on Friday before next week’s Federal Reserve meeting.
“There are plenty of positives,” Andrew Clarke, director of trading at Hong Kong brokerage Mirabaud Asia Ltd., said by e- mail. “The investors who have missed the rally in some of the markets are still coming in. But we have also come to a point in some markets where it’s time to take a bit of profit.”
Commodity producers
The Asia Pacific gauge was headed for a fourth straight weekly advance, climbing 1.3%. The Nikkei 225 Stock Average slipped 0.7% on Friday, but is still set to finish the week above the 20,000 level last seen in April 2000. The broader Topix index is up 1.9% in the week.
Energy and raw-materials producers drove gains in Australia’s S&P/ASX 200 Index, with BHP, the world’s biggest mining company, rising a second day. Fortescue Metals Group Ltd. jumped more than 5% toward its highest close since 5 March after iron ore increased for a second day at China’s Qingdao port on Thursday. Australia’s biggest export is headed for its largest weekly increase since January 2013.
Ore with 62% content at Qingdao climbed 1.4% to $54.82 a dry ton on Thursday and is poised for a 7.6% increase this week, the most since 4 January 2013, according to data from Metal Bulletin Ltd.
A gauge of materials producers in the MSCI Asia Pacific Index was up 1.2% Friday, heading for a 2.6% advance on the week.
The Kospi index in Seoul added 0.3%, and the won appreciated 0.3% to 1,078.74 a dollar, putting it on track for a sixth straight weekly gain. The ringgit advanced to 3.6003 a dollar.
Hong Kong
The Hang Seng Index in Hong Kong added 0.2%. The Hang Seng China Enterprises Index, a gauge of mainland shares listed in Hong Kong, fluctuated after the measure retreated 1.3% on Thursday.
The Enterprises index is the third-best performing primary gauge globally the past month, trailing only Russia’s RTS Index and the Shanghai Composite Index. An easing in rules surrounding a stock link between Hong Kong and Shanghai has seen an increase in mainland Chinese investment in the market.
The Shanghai Composite slipped 0.7% as regulators said they would increase the pace of initial public offerings while warning that stock investment isn’t without risks.
Investors should trade cautiously because Chinese share prices are influenced by many factors, Shanghai Securities News cites Zhao Min, vice head of China Securities Regulatory Commission’s investor protection bureau, as saying.
Oil markets
West Texas Intermediate (WTI) crude fell 0.6% to $57.40 a barrel after surging 4.5% the past two days. WTI is set for its longest run of weekly gains since February last year. Brent oil has climbed 1.8% this week to $64.59 a barrel.
Oil has rebounded from a six-year low reached in March on speculation a drilling slowdown in the US and improved fuel demand will help drain excess global supply. Vitol Group, the world’s biggest independent oil trader, said this week crude prices won’t drop below $50 a barrel for sustained periods.
Gains of at least 0.8% in Comcast Corp. to EBay Inc fueled the Nasdaq Composite’s advance to an all-time high. The Standard & Poor’s 500 Index rose 0.2% in a second day of gains, putting it within 0.3% of a record as earnings from large companies surpassed estimates.
“The Nasdaq is seeing strength because a lot of these technology companies are doing better,” Randy Warren, who manages more than $100 million at Exton, Pennsylvania-based Warren Financial Service & Associates Inc., said by phone. “Sentiment seems to be really positive. The market seems to be giving Fortune 500 companies a free pass, assuming that the first quarter was bad but we’re going to have an acceleration. If we get that, all is well and everyone is happy.
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