2014.11.2602:07:15UTC+00Asian stocks on four-day winning streak as materials rise

Asian stocks advanced with the regional benchmark index set for a four-day winning streak as materials and health-care gain. The advance in said stocks offset the decline in Japanese shares as the yen strengthens.

The MSCI Asia Pacific Index rose by 0.1% to 140.90. 9:03 am, Tokyo time. The Topix Index shed 0.1% to 1,408.23, 12:33 pm, Tokyo time. The index lost as much as 0.4% in early trade. The NIkkei 225 Stock Average added 0.03% or 5.42 points to 17,415.71. The nation’s currency strengthened by 0.1% to match the dollar at 117.82 yen per dollar. Yesterday, the yen strengthened as much as 0.5%. The Shanghai Composite Index advanced by 0.88% or 22.49 points to 2,589.97 set to reach its highest mark since April of 2011. Last week, the central bank cut interest rates to help the economy. It is the first time for the central bank to do this in two years. Hong Kong’s Hang Seng China Enterprises Index or the H-Share Index advanced by 0.4% while the CSI 300 Index climbed by 0.9%. The Hang Seng Index climbed by 0.17% or 39.60 points to 23,883.51. Australia’s S&P/ASX 200 and South Korea’s KOSPI Index rallied by 0.98% or 52.51 points to 5,387.30 and 0.15% or 3.05 points to 1,983.26 respectively.

In Japan, Inpex Corp. led explorers in decline, losing 2%  while gas producer, Nippon Sanso Corp. plummeted by 10% after it soared by 23% in the previous trading day. Kawasaki Kisen Kaisha Ltd. rose by 1.7% while the leader of advances in the Nikkei 225 Stock Average, Nippon Light Metal Holdings Co. surged by 5.4%. China’s Huatai Securities Co. surged by 10% while China Railway Group Ltd. along with China Railway Construction Corp. added at least 2% following approved projects by the government. Seoul’s Hanwha Chemical added 3% while its prospect to be acquired, Samsung Techwin, tumbled by 15% or the maximum trading limit slump.

Chief market strategist at IG Markets Ltd., Chris Weston, commented to Bloomberg that the market is seeing a mixed picture and that further along, we might see the market run out of steam however a pullback will be a buying opportunity.

The Topix had been on a steady incline after Prime Minister Shinzo Abe dissolved the parliament last week in preparation for the December elections. Earlier last week also, Abe announced the sales tax delay and the preparation for a stimulus package after the country unexpectedly went into recession. The BOJ also added to stimulus saying that it will expand monetary base at an annual pace of 80 trillion yen or $676 billion.