English | 中文版 |  Русский

Breaking News:

Source: www.asiaecon.org |


Asian stocks rose this month, as a result of China's manufactures are expanding for a third month, boosting the commodities prices and giving optimism to the market. The Chinese manufactures, specially steam, with Jiangxl Copper Co. surged 9.1 percent 9 (the China's largest metal producer). The market is betting that the demand for commodities will grow. The second most important manufacture in the country, as showing index today, is expanding. The analysts are betting on a recovering that would accelerating investments. As a consequence, the consumer's demand and industrial production will raise.

Since the global crisis began in 2007, it is China’s third month commodities growth. Cnooc Ltda, China’s largest oil producer, rose 8.8 percent as oil climbed to a seven-month high. A unit of Bank of China, BOC Hong Kong (Holding) Ltd., surged 7.3 percent after Deutsch bank AG advised investor to buy the stock. he MSCI Asia Pacific Energy Index climbed 4.2 percent, set to close at its highest level since Sept. 25. Mitsubishi gained 5.6 percent to 1,899 yen in Tokyo. Its closest rival Mitsui & Co climbed 5.8 percent to 1,286 yen. BHP Billiton Ltd., the world’s largest mining company, added 3.1 percent to A$35.74 in Sydney. Sun Hung Kai Properties, Hong Kong’s biggest developer by market value, gained 3.5 percent to HK$99.90.  Prosperity stocks on Hong Kong’s Hang Seng Index has risen 52 percent this year, the most of the benchmark measure’s four industry groups.  The economists said that economic growth will continuing and stimulating industrial production. In the government-backed PMI, the export order index increased to 50.1, the first expansion in 11 months. The output index fell to 56.9 from 57.4 and the new order index dropped to 56.2 from 56.6.  “For the first time the PMI shows genuine evidence that policy really is gaining traction.  A jump in orders and declines in companies’ inventories suggest ‘sustained output growth in months to come”, said Eric Fishwick, head of economic research at CLSA in Hong Kong.  “China is once again proving that it’s the most important country in the world right now both in terms of its own growth as the third biggest economy in the world and also its impact on commodity prices and the subsequent benefit that it gives to a variety of emerging markets that produce them”, Peter Boockvar said, equity strategist at Miller Tabak & Co.  The Dubai Financial Market General Index hit a five-month high, finishing 2.2 per cent higher after rising for the fifth consecutive trading session. The Abu Dhabi Securities Exchange General Index advanced 0.2 per cent, the fourth consecutive increase. The Kuwait Stock Exchange Index gained 1.2 per cent and Saudi’s Tadawul rose 1.81 per cent. The Doha Securities Market Index climbed 1.4 per cent and the Bahrain All Share Index increased 0.6 per cent. Oman recorded the only decline as shares fell a marginal 0.1 per cent.  Ayman el Saheb, the director of operations at Darahem financial brokerage said: “The price of oil - which has had huge gains in the past couple of days - has reflected positively on our capital markets. We have seen more buying, more people are taking the chance, putting more liquidity in.”  The Purchasing Managers Index in China remained in expansionary territory for the third straight month, raising hopes that the massive government fiscal stimulus is succeeding in boosting Chinese economic growth and with it global demand for commodities, such as oil.  Another fact as a result of China’s manufacturing growth was the rally of the World stock markets , also helped push oil to its highest since November and Gulf markets braced for a new wave of foreign capital.  The Gulf’s industrial titans recorded some of the biggest gains in the region on news that manufacturing in China grew for a third month, bolstering hopes that the worst of the global financial crisis is over and stoking demand for commodities from Doha to Riyadh.

Source: www.asiaecon.org |

More Special Articles - Asia Business & Economy Articles