By Chao Deng
Stocks rallied across most of Asia Friday, after the European
Central Bank unveiled a bond-buying program aimed at shoring up the
flagging eurozone economy.
Australia's S&P/ASX 200 finished up 1.5% at 5501.80 and Hong
Kong's Hang Seng Index up 1.3% at 24849.68 with investors expecting
that Europe's bond-buying efforts will support money flows to
riskier investments, including stocks.
The ECB's move was widely expected, although the size of the
asset-purchase plan was larger than many had forecast--the bank
said it would buy 60 billion euros a month in assets including
government bonds, debt securities issued by European institutions
and private-sector bonds. Underscoring how quickly the move is
likely to encourage easing across the region, Denmark's central
bank cut its main interest rate overnight.
The Shanghai Composite capped a volatile week. It ended up 0.3%
to 3351.76 Friday. HSBC's China flash manufacturing PMI report for
January rose to 49.8 from 49.6 in December, which despite showing a
slight strengthening indicates continued economic deceleration amid
a slowing property sector. A reading above 50 indicates expansion,
while a reading below 50 indicates contraction.
The benchmark lost 0.7% for the week, however, after investors
had taken profit on concerns that tighter rules toward Chinese
brokerages would spell an end to a multi-month rally. Shanghai
shares plunged 7.7% Monday after a sudden move by Chinese
regulators to curb borrowing.
Still, China's central bank has also pumped more liquidity into
the financial system in recent weeks, spurring hopes of further
easing of monetary policy that will bring gains to the stock
market.
The yuan fell as low as 6.2237 against the U.S. dollar, after
China's central bank pushed down the rate Friday by the most since
last March. Its weaker guidance comes as central banks across the
world push their currencies lower through aggressive monetary
easing policies.
The ECB's move sent the euro to new 15-month lows against the
Japanese yen during Asia trade.
In Hong Kong, shares of Hutchison Whampoa Ltd. jumped 3% after
the company said it has agreed to enter into exclusive talks to buy
U.K. mobile-phone operator O2 for potentially more than GBP10
billion ($15 billion). A deal would be the latest large
consolidation move in Britain's fast-changing wireless market.
In Australia, utilities and energy stocks led gains after a jump
in crude-oil prices. Woodside Petroleum Ltd. was up 1.8%, while
Origin Energy Ltd was up 2.5%.
Oil prices on the New York Mercantile Exchange were up 1.6% at
$47.05 after news that Saudi Arabia's King Abdullah bin Abdulaziz
al Saud died--raising questions about how a leadership transition
in the world's largest oil exporter could affect its production
policy and that of the Organization of the Petroleum Exporting
Countries, according to analysts.
Anjani Trivedi and Mia Lamar contributed to this article.
Write to Chao Deng at Chao.Deng@wsj.com
Access Investor Kit for Hutchison Whampoa Ltd.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=HK0013000119
Access Investor Kit for Hutchison Whampoa Ltd.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US4484152081