Asian markets remain stout in middle European crisis By: Atchokers JAKARTA (Atchokers): Asian markets recorded the highest increase in weekly in more than last month due to higher corporate earnings and ease European worries that the debt crisis will disrupt global economic recovery.
Shares of Tencent Holdings Ltd., China's biggest internet company by market value, jumped 6.2% this week as rising corporate earnings. Meanwhile, shares of Isuzu Motord Ltd also soared 11% in Tokyo due to the increase of their revenue forecast of more than two-fold. Shares in Australia & New Zealand Banking Group Ltd. climbed 4.5% due to European Union authorities have announced a package of loans to European countries which are full of the debt crisis.
Meanwhile, the MSCI Asia Pacific index gained about 1.6% to 120.00 this week. This increase is the highest in the period which expires 4 April. The MSCI index has fallen 7.1% from a high level for 20 months on 15 April. The decline was triggered by the debt crisis of Europe and the emergence of concerns that China step in dampening inflation would likely disrupt the level of confidence in the global economic recovery.
"The message that is implied from the current economic conditions and corporate earnings reports is that now we are in the path of economic recovery. Disturbances that occurred in the European Union in recent weeks may interfere with the recovery process. However, steps have been taken to resolve this crisis means that the recovery process will not necessarily stop, "said Prasad Patkar who helps manage assets of U.S. $ 1.7 billion at Platypus Asset Management in Sydney.
Australia's index S & P / ASX 200 and the South Korean Kospi index gained 2.9% this week. Meanwhile, the Nikkei 225 index rose 0.9% in Tokyo.
Philippines Stock Exchange index soared 6%, its biggest weekly rise in a year as the election of Beniqno Aquino as president by acclamation managed to assuage fears of disruption in the election results.
The analysts expect that earnings per share from companies that support the MSCI index of Asia-Pacific region will rise 53% in the next 12 months, this level compared with 26% occurring in the S & P 500 index and 38% that occurred in the Stoxx Europe 600 index.
Shares in Australia & New Zealand Banking rose 4.2% to A $ 22.81 while Westpac Banking Corp shares rose 3% to A $ 24.89. Shares of National Bank Ltd. also rose 3.2% to A $ 25.37.
On May 11, the Shanghai Composite Index drifting into lethargy after the stock plunged 21% from a high level since 23 November as concerns about the intensification of China's steps to calm their property industry. Statistical Bureau of China this week stated that consumer prices rose in April, the fastest rate for 18 months. Property prices also soared, a record 12.8%.
By Atchokers Of Love