Business

Asian stocks rise third week amid recovery signs in China, US

Asian stocks rose for a third week, with the regional benchmark gauge capping the longest winning streak in three months, as China’s government pledged to boost urban development and gains in US services and factory orders boosted exporters.

PUBLISHED : Saturday, 08 December, 2012, 10:57am
UPDATED : Saturday, 08 December, 2012, 10:57am
 

Asian stocks rose for a third week, with the regional benchmark gauge capping the longest winning streak in three months, as China’s government pledged to boost urban development and gains in US services and factory orders boosted exporters.

The Shanghai Composite Index rose 4.1 per cent this week, the biggest such gain since October last year. Anhui Conch Cement Co., China’s biggest cement maker, paced gains among construction- related shares as the country’s new leadership vowed to support urbanisation. James Hardie Industries SE, which gets 67 per cent of sales from the US, rose 3.9 per cent in Sydney. Shimizu Corp. paced gains among construction companies in Tokyo on bets a deadly highway-tunnel collapse will lead to more public works spending.

The MSCI Asia Pacific Index gained 1.2 per cent to 126.14 this week, capping a seven-day rally, the longest rising streak since September. Gains were limited as US lawmakers continued to negotiate a budget compromise to avert the so-called fiscal cliff.

“The economic data looks OK and that’s been supporting the share market,” said Shane Oliver, Sydney-based head of strategy at AMP Capital Investors Ltd., which has almost $100 billion under management. “Markets will have to see a resolution of the US fiscal cliff for the rally to continue.”

The MXAP measure advanced almost 16 per cent from this year’s low on June 4 as central banks from Europe, the US, Japan and China took steps to support economic growth. The gauge traded at 14.2 times estimated earnings on average, compared with 13.6 times for the Standard & Poor’s 500 Index and 12.6 times for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.

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