A gauge of Asian equities is headed toward a new record close amid a rebound in technology stocks in the penultimate trading session of the year. It first rose to an all-time high in November, surpassing its 2007 peak.
The MSCI Asia Pacific Index climbed 0.5 percent to 173.60 as of 4:39 p.m. in Hong Kong. Major technology names such as Samsung Electronics Co. and Hon Hai Precision Industry Co. boosted the benchmark after a recent selloff in the sector. Largan Precision Co. climbed after it flashed an oversold signal on Wednesday, with its 14-day relative strength index falling to 22.
Technology stocks “have had a substantial correction before this, so you should be looking for a technical rebound anywhere from here,” Hao Hong, chief strategist at Bocom International Holding Co. in Hong Kong said by phone. “Tech is a long-term opportunity, you shouldn’t measure the performance in terms of weeks, months or even years.”
The Asia Pacific benchmark index has risen 29 percent this year. While the information technology sub-gauge has led the yearly charge, it is still headed for its first monthly loss in a year.
Asian stocks also benefited from a weaker dollar, raising expectations for inflation to surprise on the upside in the near term, which will benefit earnings, said Bocom’s Hong.
“Emerging Asia tends to do very well in this kind of environment: a weak dollar, reasonable growth and higher-than-expected inflation,” the strategist said.
- Topix -0.6%, Nikkei 225 -0.6%
- Japanese Stocks Slide, Led by Banks, Exporters on Yen’s Gain
- Hang Seng Index +0.9%, Hang Seng China Enterprises Index +0.6%, Shanghai Composite Index +0.6%, Shenzhen Composite +0.5%
- Hong Kong’s Latest Stock Frenzy Sees Unisplendour Tech Triple
- Taiex +0.8%
- Kospi +1.3%, Kospi 200 +1.4%
- S&P/ASX 200 +0.3%; New Zealand’s S&P/NZX 50 +0.4%
- Straits Times Index +0.3%, Malaysia’s KLCI +0.5%, Jakarta Composite Index +0.1%, Thailand’s SET Index -0.3%, Philippine Stock Exchange Index +0.5%, Vietnam’s VN-Index +0.9%
- India’s Nifty 50 Index +0.3%, Sensex +0.3%