Asian Stocks Post Biggest Weekly Gain Since 2007 on Fed Plans

The MSCI Asia Pacific Index rose 6.4 percent to 79.53 this week, adding to last week’s 3.9 percent advance. Japan’s Nikkei 225 Stock Average climbed 5 percent in a holiday-shortened week. Hong Kong’s Hang Seng Index rose 2.5 percent. South Korea’s Kospi Index jumped 4 percent. Standard Chartered Plc, the U.K.’s second-largest bank by market value, gained 11 percent in Hong Kong after saying it does not need to raise capital. China Huiyuan Juice Group Ltd. plunged 58 percent in Hong Kong after Chinese regulators blocked Coca-Cola Co.’s $2.3 billion takeover bid. Casio Computer Co., the maker of G-Shock watches and Exilim cameras, tumbled 17 percent in Tokyo as it forecast its first loss in seven years.
Trend Bullish short-term, neutral med-term, bearish long term. Sell on rally above 7,970/8,050 target 7,350.
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(Dow Jones)--China Mobile extended losses on a worsening earnings outlook while Chinese financial stocks tracked declines in their U.S. counterparts overnight, pushing Hong Kong stocks lower Friday. Traders said the Hang Seng Index may fall further in the near term, possibly toward 11,000 points, on concerns about deteriorating economic and corporate fundamentals. The blue-chip Hang Seng Index fell 297.41 points, or 2.3%, to 12,833.51, after hitting an intraday low of 12,797.10. Turnover totaled HK$43.89 billion, down from HK$48.59 billion Thursday. 'We think it is about time to trim shareholdings. We expect selling pressure will increase,' said ICEA Securities strategist Ernie Hon. Alex Wong of Ample Financial Group said hopes of more favorable government policies from Beijing have waned, and the near-term retreat of Chinese stocks will be a major force pulling back the Hang Seng Index. China Mobile fell 5.4% to HK$63.10, after a decline of 2.1% Thursday. It said Thursday its 2008 net profit rose to CNY112.80 billion from CNY87.10 billion in 2007, but profit growth slowed toward the end of the year amid intense competition and the weakening economy. Marvin Lo, an analyst at Daiwa Institute of Research, said he expects China Mobile's net profit growth to slow to 8.4% this year, from 29.6% last year, on a drop in subscriber growth and higher capital expenditure related to third-generation mobile services. 'A slower economy, greater competition and the inflow of new customers from rural areas are likely to put downward pressure on net subscriber additions,' Lo said. Bank of America Merrill Lynch downgraded China Mobile to neutral from buy and cut the target price on the stock by 15% to HK$73.00. It said China Mobile's earnings growth is decelerating, in part because depreciation expenses will rise as the company spends more to expand its network. Chinese financial stocks tumbled, tracking a 16% drop in Citigroup's shares overnight, as the U.S. banking giant prepared to issue preferred shares and sought approval for a reverse stock split, traders said.

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