Business | Economy
Stimulus plans lift Shanghai amid wider gloom
Asia-Pacific stocks suffered yet another volatile week of trading with most markets ending the week lower as fears over the worsening US economy took a tighter hold over investors.
- By Lindsay Whipp, Financial Times
- Published: 23:41 November 15, 2008
Tokyo: Asia-Pacific stocks suffered yet another volatile week of trading with most markets ending the week lower as fears over the worsening US economy took a tighter hold over investors.
However, the Shanghai market stood out, steadily rising in the face of declines elsewhere in the region.
Its gains mainly came on the back of the Chinese authority's announcement of a 4,000 billion-yuan ($586 billion, Dh2.152 trillion) stimulus plan focussed on infrastructure and social programmes, to help offset slowing economic growth.
The Shanghai Composite index rose 13.7 per cent over the week, the only leading Asia-Pacific market to end in positive territory, closing at 1,986.44, its highest level since mid-October.
Stocks rose steadily over week following a 7.3 per cent jump on Monday after the plan was announced, in spite of government data released over the week showing industrial output growth was slowing.
Infrastructure-related companies benefited from the announcement, with Anhui Conch Cement gaining 29.8 per cent over the week to 24.46 yuan, Aluminum Corp of China rising 28.4 per cent to 7.91 yuan and China Railway Group increasing 28 per cent to 6.03 yuan. Baoshan Iron & Steel gained 21.6 per cent to 5.57 yuan.
Japan
Japanese exporters continued to be subjected to the whim of yen movements against the dollar, with the yen strengthening mid-week to 95 yen (Dh3.59) levels. Sony lost 4.8 per cent to 2,075 yen over the week while Panasonic lost 6.2 per cent to 1,434 yen.
Taiwan's Hon Hai Precision Industry lost 16 per cent to T$60 (Dh6.66) and Korea's Samsung Electronics fell five per cent to 465,000 won (Dh1,217).
Elsewhere in the region, Japan's broader-based Topix index ended the week down 3.7 per cent to 846.91 while Hong Kong shares lost 4.9 per cent to 13,542.66 and Australian stocks fell 7.5 per cent to 3,748.10.
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