Asian stocks rose toward a six-year high after the Federal Reserve said interest rates will remain low for some time as U.S. growth rebounds, and Premier Li Keqiang pledged to sustainChina’s economic expansion forecast.
BHP Billiton Ltd. (BHP), the world’s largest miner, climbed 3.1 percent in Sydney as materials companies led gains. Seiko Epson Corp. surged 8.4 percent after Citigroup Inc. said earnings at the Japanese printer maker are above market estimates. China Overseas Land & Investment Ltd lost 1.9 percent in Hong Kong as UBS AG said it expects more extensive price cuts for property.
The MSCI Asia Pacific Index advanced 1.1 percent to 145.28 as of 11:22 a.m. in Hong Kong, heading for its biggest gain in a month as all 10 industry groups rose. A close at this level would be the highest since June 2008. Fed Chair Janet Yellen said accommodative monetary policy, rising home and equity prices plus an improving global economy should produce an above-trend U.S. expansion.
The Topix jumped 1.5 percent today, climbing for a third day and poised for it highest close in almost five months. Australia’s S&P/ASX 200 Index advanced 1.5 percent and Hong Kong’s Hang Seng Index rose 0.2 percent. New Zealand’s NZX 50 Index and Singapore’s Straits Times Index added 0.1 percent, while Taiwan’s Taiex index gained 0.2 percent. The Shanghai Composite Index declined 0.4 percent and South Korea’s Kospi index (KOSPI) slid 0.1 percent.
China will have “medium to high-level” growth in the long run, Premier Lisaid during a speech in London yesterday, adding that he could promise “honestly and solemnly there won’t be a hard landing.”
“The Chinese government is adjusting its economic operations to ensure the minimum growth rate is 7.5 percent, the level to ensure job creation,” Li said in the speech.
Source: Bloomberg
