| Hang Seng Index closes at a record |
| Last Updated(Beijing Time):2006-10-27 13:15 |
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Hong Kong's Hang Seng Index rose to a record, leading Asian stocks higher after the US Federal Reserve forecast a "moderate pace" of expansion in the region's biggest export market. China Mobile Ltd and Canon Inc led gains, Bloomberg News reported.
Shares also advanced after Australia & New Zealand Banking Group Ltd reported better-than-expected earnings and Honda Motor Co raised its profit forecast.
"The Fed implied the inflation risk is retreating, and if things continue as they are we can expect a rate cut," said Tomokatsu Mori, who helps oversee US$7.4 billion at Fukoku Capital Management Inc in Tokyo. "Earnings have provided some relief for investors, which is inducing some buying."
The Morgan Stanley Capital International Asia-Pacific Index added one percent to 133.24 in Tokyo. The measure rose for a sixth straight day for the first time since the period ended on January 31.
Sun Hung Kai Properties Ltd helped lift the Hang Seng Index to a record close, on expectations the city's central bank will follow the Fed's decision to keep borrowing costs unchanged.
Japan's Nikkei 225 Stock Average climbed 0.7 percent to 16,811.60. Share indexes gained elsewhere in the region, except in Thailand and Sri Lanka. Australia ended the day at a record. Indonesia's stock market was closed for a holiday.
US stocks advanced, sending the Standard & Poor's 500 Index to its longest winning streak since March. The Fed, which left its benchmark rate unchanged at 5.25 percent for the third consecutive month, said the economy is "likely to expand at a moderate pace," and "inflation pressures seem likely to moderate over time." It was the first time since May that the central bank included a specific reference to the growth outlook.
Canon, the world's largest digital-camera maker, climbed 1.7 percent to 6,650 yen (US$56). Samsung Electronics Co, South Korea's largest exporter, gained 0.6 percent to 629,000 won (US$664). The US is the world's biggest export destination for Asian-made goods.
"The Fed's steady hands are likely to craft sustainable US economic growth," said Barro Liao, who helps manage about US$2.1 billion at PCA Securities Investment Trust Co in Taipei. "Investors can safely assume Asian exporters' profitability will be supported by US demand."
LG Electronics Inc, Asia's second-biggest mobile-phone maker, gained 1.8 percent to 56,500 won. Hon Hai Precision Industry Co, Taiwan's biggest electronics company, advanced 1.6 percent to NT$218 (US$6.55).
Hong Kong's Hang Seng rose to a record close of 18,353.70. China Mobile, the measure's second-biggest component, jumped 3.8 percent to HK$62.60 (US$8.44). Sun Hung Kai, the city's No. 1 developer by market value, advanced 1.2 percent to HK$86.15. Cheung Kong (Holdings) Ltd, the second biggest, added 0.4 percent to HK$85.
The Hong Kong Monetary Authority tends to move local rates in tandem with those of the US to help preserve the Hong Kong dollar's link to the US currency.
ANZ Bank, the third-largest Australian lender, gained 1.2 percent to an all-time high of A$28.75 (US$21.93), a record close.
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