Asian stocks rose, with the regional benchmark index extending its rally to a six-month high, as phone carriers and electronics manufacturers advanced.
Singapore Telecommunications Ltd. climbed 1.6 percent as Southeast Asia’s biggest phone carrier agreed to sell part of its stake in Singapore Post Ltd. to Alibaba Group Holding Ltd. Singapore Post jumped 8.7 percent to a record. Samsung Electronics Co., the largest maker of smartphones, added 2 percent inSeoul after unveiling a prototype health-monitoring wristband. BHP Billiton Ltd., the world’s No. 1 mining company, dropped 1.2 percent in Sydney as copper futures declined.
The MSCI Asia Pacific Index (MXAP) rose 0.2 percent to 142.21 as of 11:07 a.m. in Hong Kong. The gauge is headed for its highest close since Nov. 19 and a 3.6 percent gain in May, its biggest monthly increase since September. The regional benchmark earlier fell 0.2 percent after Japan reported a worse-than-estimated drop in retail sales for April.
Investors “should not read too much into the April retail sales numbers,” Vasu Menon, vice president of wealth management in Singapore at Oversea-Chinese Banking Corp., said on Bloomberg Television. “It turned out to be worse than expected. As we progress into the second quarter and third quarter, some of the negative impact from the Japanese sales-tax hike will wear off.”
Japan’s Topix index added 0.1 percent, erasing an earlier loss of 0.4 percent. The nation’s retail sales fell 13.7 percent in April from March, the most in at least 14 years after the first consumption-tax increase since 1997 depressedconsumer spending. The drop was worse than a forecast 11.7 percent decline by analysts in a Bloomberg survey.
Regional Gauges
China’s Shanghai Composite Index was little changed, while Hong Kong’s Hang Seng Index gained 0.5 percent and the Hang Seng Enterprises Index of mainland shares traded in the city increased 0.7 percent.
Singapore’s Straits Times Index climbed 0.8 percent, heading for its highest close in a year. Morgan Stanley raised its rating on Singapore shares to overweight from equal-weight, citing stabilizing economic growth and limited earnings risks, analysts led by Yang Bai wrote in a report to clients.
South Korea’s Kospi index slid 0.1 percent. The nation’s current account surplus narrowed to $7.12 billion in April from a revised $7.29 billion in March, data released by the Bank of Korea today showed.
New Zealand’s NZX 50 Index fell 0.2 percent. Australia’s S&P/ASX 200 Index (AS51) was little changed and Taiwan’s Taiex index slipped 0.1 percent. Markets in Indonesia are closed for a holiday.
Source: Bloomberg
