ASIAN EQUITY SURGE LEAD BY SENSEX
The BSE Sensex closed 1,020 points higher at 58,990 on Friday, its strongest session since November, with support from tech and energy shares as investors returned from Thursday’s holiday. The rally for shares in the technology sector was supported by news of Alibaba’s spinoff during the week, tracking gains for the sector worldwide amid hopes that Beijing will mandate corporate-friendly policies. Infosys shares soared by 3.2%, while TCS added more than 2%. Strong manufacturing PMI data from China also buoyed sentiment, carrying base metal prices and commodity-linked equities traded in Mumbai. In the meantime, Reliance Industries surged by 4.2% as it started the process of demerger of its financial services business. On the week, the Sensex added more than 2%.
The Shanghai Composite climbed 0.36% to close at 3,273 while the Shenzhen Component added 0.64% to 11,726 on Friday, extending gains from the previous session and taking cues from a positive lead on Wall Street, amid expectations that major central banks would soon end their tightening campaign and on easing concerns about the recent banking turmoil. Investors also digested showing China’s manufacturing activity slowed slightly in March, but came in above market forecasts and remained expansionary for the third straight month. Meanwhile, services activity accelerated the most in 12 years, boosted by strong domestic demand. Notable gains were seen from index heavyweights such as 360 Security Technology (3.6%), Contemporary Amperex (1.5%), Kweichow Moutai (1.1%), Kunlun Tech (20%), iFLYTEK (8.4%) and Zhejiang Jinke (7.7%). The Shanghai and Shenzhen indexes the ended both the week and the quarter higher, but posted losses for the month.
The Nikkei 225 Index jumped 0.93% to close at 28,041 while the broader Topix Index rallied 1.02% to 2,004 on Friday, reaching their strongest levels in about three weeks and taking cues from a positive lead on Wall Street, amid expectations that major central banks would soon end their tightening campaign and on easing concerns about the recent banking turmoil. Investors also digested mixed Japanese economic data, with the unemployment rate unexpectedly rising to 2.6%, while retail sales and industrial production grew more than expected. Notable gains were seen from index heavyweights such as SoftBank Group (1.9%), Nippon Steel (3.9%), Mitsubishi UFJ (2.5%), Keyence (1.9%) and Sony Group (2.1%). The Nikkei and Topix indexes both finished the week about 2.5% higher, rising for the second straight week.
