Asian Stocks Extend Gains From 21-Month High; Shenhua Rallies

Mar 20, 2017 5:38 am ET

(Bloomberg) -- Asian shares extended gains from a 21-month high, while the world’s biggest coal miner soared after posting its first profit in four years and pledging to pay a special dividend.

The MSCI Asia Pacific Ex-Japan Index gained 0.4% as of 4:26 p.m. in Hong Kong, with Japan’s markets closed for a holiday. Hong Kong’s Hang Seng Index rose 0.8 percent. Some of Asia’s largest companies, including Tencent Holdings Ltd. and China Mobile Ltd., report quarterly earnings this week.

A weekend meeting of the Group of 20 nations omitted a pledge to resist all forms of protectionism after U.S. President Donald Trump met with German Chancellor Angela Merkel at the White House. Chinese and American officials attending the G-20 meeting agreed to boost economic cooperation, Xinhua News Agency reported.

“We see macro data improving in Asia and no aggressive actions from the Trump administration, which some had dreaded would happen,” said Jingyi Pan, a Singapore-based market strategist for IG Asia Pte Ltd.

China Shenhua Energy Co. surged 16 percent, the most since October 2008. China Coal Energy Co. jumped 4 percent, while Yanzhou Coal Mining Co. added 3.7 percent.

Summary

  • Hang Seng Chinese Enterprises Index +0.7, Shanghai Composite +0.4%
    • China Resources Land -2.4% after cities including Beijing, Guangzhou, Qingdao, Nanjing and Changsha tightened mortgage rules to curb runaway home prices
  • India’s Sensex -0.4%, retreating from a 2-year high, as software and technology stocks lead declines
  • Australia’s S&P/ASX 200 -0.4%, New Zealand’s NZX 50 -1.4%
    • Fletcher Building -10% in Sydney, the most since Oct. 2011; leads declines on both gauges after cutting its profit forecast and identifying more expected losses
  • South Korea’s Kospi -0.4%; Taiex little changed
  • Singapore’s Straits Times Index -0.3%
    • Nam Cheong plunged 31% to a record low after Ezra Holdings filed for bankruptcy in the U.S.
  • FTSE Bursa Malaysia KLCI +0.1%
    • Malaysia Airports Holdings +3.2 percent as media reported that Alibaba Group Holding is planning a regional distribution hub on a site being developed by the airport operator
  • Jakarta Composite Index -0.5%; Philippine Stock Exchange Index -0.4%; Thailand’s SET Index +0.4%

(Updates with closing prices.)

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