Asian stocks rose for the first time in three days after better-than-estimated U.S. data bolstered the outlook for the world’s largest economy and concern over China’s cash crunch eased.
James Hardie Industries SE (JHX), a supplier of building materials that gets about 70 percent of sales from the U.S., climbed 3.8 percent in Sydney. Industrial & Commercial Bank of China Ltd., the world’s biggest lender, jumped 4.1 percent in Hong Kong after the nation’s central bank injected liquidity to stabilize money-market rates. Woori Finance Holdings Co. gained 2.8 percent in Seoul after the government announced plans to separate the nation’s largest financial group by assets into three parts.
China Stocks `Substantially Undervalued'
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June 26 (Bloomberg) -- Michael Kurtz, the Hong Kong-based chief global equity strategist at Nomura Holdings Inc., talks about China's economy, stocks, and government and central bank policies. He speaks with Zeb Eckert on Bloomberg Television's "First Up." (Source: Bloomberg)
The MSCI Asia Pacific Index added 0.4 percent to 125.49 as of 12:18 p.m. in Tokyo, paring gains of as much as 1.1 percent earlier. About five shares rose for every three that fell on the measure. The gauge dropped 13 percent through yesterday from this year’s high on May 20 after Federal Reserve Chairman Ben S. Bernanke said policy markers may start dialing down stimulus if the U.S. economy shows sustained improvement, and as money-market rates in China surged to records.
“More growth means equities have a very good fundamental reason to continue rallying as we look through the noise,” Michael Kurtz, Hong Kong-based head of global equity strategy at Nomura Holdings Inc., said on Bloomberg Television. “China stocks are starting to look substantially undervalued. Investors with a medium to long-term perspective should be taking this as an opportunity to go shopping.”new source: www.bloomberg.com
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