15.08.201405:58:12UTC+00Asian stocks rise toward weekly gain in five months

Asian stocks swung between gains and losses with the regional benchmark index inching up towards its largest weekly gain that was last seen in March as investors factored in more corporate earning report, the geopolitical developments in Ukraine, and the stimulus speculation of added measures by the central bank on the latest, worse-than-expected economic data.

The MSCI Pacific Index inched up by less than 0.1% to 147.91, 11:47 am Hong Kong time after losing as much as 0.1% in the intraday trade. The index approaches a weekly total of 2.6% increase that was last seen on March 28. All major indices are up with Japan aiming for its biggest weekly gain in four months. Japan’s Nikkei 225 Index and South Korea’s KOSPI Index are up by 0.04% or 6.32 pips to 15,320.89 and 0.04% or 0.86 pips to 2,063.22 respectively. China’s Shanghai Composite Index and Hong Kong’s Hang Seng Index declined by as much as 0.83% or 18.36 points to 2,224.83 and 0.67% or 164.97 pips to 24,966.33 respectively. Capping off the major Asian indices are Australia’s S&P/ASX 200 and CNBC 100 ASIA IDX advancing by 0.47% or 25.93pips to 5,574.40 and 0.24% or 18.28 pips to 7494.19 respectively.

China’s Parkson Retail Group Ltd. surged 12% in Hong Kong after the department store chain reported better-than-expected profit earnings. Australia’s James Hardie Industries Plc., plunged by 7% after the building-materials supplier failed to beat estimates. China Mobile Ltd. is the world’s largest company based on its users. The telecommunications giant led the gains in the market as it amassed an added 2% after announcements that it will cut $2 billion from the company’s device subsidy budget.

The speech of Russian President Vladimir Putin in Crimea greatly affected the world markets who have been keeping an eye on the geopolitical situation in Ukraine. Speculations upon speculations have been piled up as to what the intentions of Russia really are. Putin’s speech greatly eased the concerns of investors as it cleared up some conjectures with his intentions of ending conflict as soon as possible to stop the bloodshed. Putin also commented that Russia should not isolate itself from the outside world.

Portfolio manager at Pengana Capital Ltd., Tim Schroeders, commented to Bloomberg that according to history the things at “face value” that concerns what Russia is planning is an “error on the side of cynicism.” Schroeder adds that the market is seeing a “myriad of weaker-than-expected economic data” across the global markets like Europe, Japan, and the US which is keeping afloat the sentiment of investors about keeping monetary stimulus a while longer.