ASEAN KEY DESTINATIONS
ASEAN Markets Will Surge
If you have been following the Ebeling Heffernan strong buy ratings on ASEAN Stocks today will be a great day, ASEAN Markets are set to boom today after a strong turn in Wall St Sentiment.
US stocks surged Thursday on rising hopes for global economic recovery boosted by positive economic news in Asia.
The Dow Jones Industrial Average vaulted 272.98 points, or 2.8 per cent, to 10,172.15 in closing trades. The tech-rich Nasdaq index climbed 59.86 points, or 2.8 per cent, to 2218.71 and the broad-market S&P 500 index advanced 31.13 points, or 3 per cent, to 1086.82.
‘‘News out of Asia reassured investors the global recovery is intact,’’ said Scott Marcouiller at Wells Fargo Advisors.
China’s exports surpassed forecasts, unemployment rates fell in South Korea and Australia, Japan reported its economy expanded more than previously estimated in the first quarter, and New Zealand raised its key interest rate for the first time since 2008, he said.
China, the world’s third-largest economy considered the engine of the global economic recovery, said its trade surplus soared in May on strong foreign demand that drove exports up a robust 48.5 per cent from a year ago.
In Japan, the government reported the world’s second-biggest economy grew 5.0 per cent in the first quarter, faster than an initial estimate of 4.9 per cent and far above expectations.
The euro surged above $US1.21, reflecting a return in risk appetite in the market as euro-zone debt crisis fears waned
Beijing Thursday posted a 48.5 percent year-on-year jump in shipments due to demand for Chinese-made clothes and electronics. Investors also cheered news that the Australian unemployment rate had dropped to 5.2 percent in May from 5.4 percent the previous month.
Thailand Stock Exchange is showing real strength, Bangkok added 0.52 percent, or 3.95 points, to close at 768.16. Banpu gained 4.00 baht to close at 602.00 while PTT Plc was unchanged at 245.00.
PTT Plc has decided to delay a plan to merge two subsidiaries, IRPC Plc and PTT Aromatics and Refinery Plc (PTTAR) until early next year from the end of this year.
Prasert Bunsumpun, president and CEO of the majority state-owned energy group, said the boards of both companies, as well as PTT itself, had expressed concern about legal issues as well as the business outlook.
The legal concerns relate to competition law, and also to outstanding lawsuits lodged by Prachai Leophairatana, the founder of Thai Petrochemical Industry, which PTT took over in a debt restructuring and renamed IRPC.
Dusit International still sees opportunities for taking over hotels both at home and abroad after postponing its investment plans for more than two years due to global economic problems and domestic political uncertainties.
“This is a good time for investment locally and abroad” said Dusit Group CEO Chanin Donavanik.
“For the international markets, we see great potential in China and Europe. We already established development companies over there to look for business opportunities.”
For the European market, the stronger baht against the euro and the European financial problems triggered by the Greek debt crisis provide an opportunity.
Manila fell 0.93 percent, or 30.34 points, to close at 3,224.49. Philippine Long Distance Telephone lost 0.2 percent to 2,380 and Metropolitan Bank was off 2.7 percent at 53.50.
Kuala Lumpur ended up 0.10 percent, or 1.23 points, at 1,291.31. Among major stocks, hospital operator KPJ rose 4.6 percent to 3.20 ringgit as consumer goods firm Hai-O climbed 2.2 percent at 4.19 while satellite firm Measat slid 1.3 percent to 2.96.
Singapore closed 1.23 percent, or 33.78 points, higher at 2,779.58.
Banking group DBS rose 1.36 percent to 13.44 Singapore dollars, Singapore Telecom added 2.43 percent to 2.95 dollars and Singapore Airlines was up 1.97 percent to 14.52 dollars.
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