Bloomberg
Asian stocks climbed for a second day as a rally in oil prices drove energy shares from Japan to Taiwan higher.
The MSCI Asia Pacific Index added 0.8 percent to 127.33 as of 4:26 p.m. in Hong Kong. The pickup in commodity prices is helping a recovery in global equities, after weaker economic data and disappointing company earnings wiped out almost $2 trillion of value in the first two weeks of May. The Bloomberg Commodity Index approached a six-month high as oil climbed above $48 a barrel.
“Markets seem to be in a relatively sweet spot with a steadily stronger U.S. dollar and resilient commodities prices,†Angus Nicholson, a Melbourne-based market analyst at IG Ltd., said by e-mail. “Many investors have been predicting a pullback in markets, but despite all the negativity, markets have continued to grind higher.â€
Taiwan’s Taiex index increased 0.9 percent as Formosa Petrochemical Corp. led the TWSE Oil Electricity and Gas Industry Index to the biggest gain among industry groups. Japan’s Topix index climbed 1.1 percent as a weaker yen aided exporters. Australia’s S&P/ASX 200 Index increased 0.7 percent. New Zealand’s S&P/NZX 50 Index rallied 0.9 percent. Hong Kong’s Hang Seng Index added 1.2 percent. South Korea’s Kospi index was little changed.
China’s Reforms
Chinese stocks traded in Hong Kong rose the most in a month as President Xi Jinping vowed to press ahead with plans to cut capacity at state-owned enterprises. The Hang Seng China Enterprises Index of mainland companies traded in the city increased 1.4 percent. The Shanghai Composite Index finished 0.3 percent lower.
China’s reform drive aims to improve supply quality and overhaul areas including pricing, taxation, finance and social security, the Xinhua News Agency cited President Xi as saying at a government meeting. His comments come amid record crude steel output in April, with the industry boosted by easier credit and efforts to shore up economic growth.
Singapore’s Straits Times Index surged 1.8 percent, leading advances among Asia-Pacific indexes, with oil-rig builder Sembcorp Marine Ltd. pacing the gains. The worst may soon be over for the offshore and marine engineering sector amid rising crude prices. BHP Billiton Ltd., the world’s biggest mining company and Australia’s top energy producer, climbed 3.5 percent in Sydney. Mitsubishi UFJ Financial Group Inc. rose 1.3 percent as a plan to buy back its own shares outweighed a profit forecast that missed analyst estimates.