beyondbrics

Asian stocks consolidated a strong September on Thursday, on continued foreign confidence. Indices in India, Indonesia and the Philippines were the month’s best performers – gaining between 11 and 15 per cent.

Currencies also continued their rise against the dollar, with the Indian rupee and the South Korean won leading gains; both are up over 4 per cent for the month. 

In India, the BSE Sensex was up 0.6 per cent to 20,069, with mortgage lender HDFC adding 3.6 per cent. The Sensex has gained 11.7 per cent in September.

In Indonesia, the Jakarta Composite was up 0.2 per cent to 3,501.30, a 13.6-per-cent gain for September (see graph).

Astra Agro Lestari, the country’s biggest plantation company by market cap, dropped 3 per cent on fears that palm oil prices will fall next year.

Petrosea, a mining service company, rose 20 per cent, on news that Indika Energy may sell a 18.5-per-cent stake in the company.

The region’s best-performing index this month, the Philippine stock exchange, was down 0.3 per cent to 4,100.07. It has gained nearly 15 per cent in September.

China‘s Shanghai Composite gained 1.7 per cent to 2,655.66.

After China’s brief de facto ban on export of rare-earth exports to Japan, producer Rising Nonferrous Metals gained 10 per cent; its shares are up 43 per cent for the week.

Fertiliser manufacturer Liaoning Huajin Tongda Chemicals rose 4 per cent after agreeing to enter a joint venture with Angola’s Sonangol.

In Taiwan, tech stocks gained, but the Taiex was roughly flat at 8,237.78. However, the index’s September gains – of 8 per cent – mark its best monthly performance in a year.

Chu Yen-min of KGI Securities told Reuters that the index “will soon challenge 8,395 points, thanks to the continuing inflow of foreign funds into Asia.”

Thailand‘s SET index was up 0.6 per cent to around 975 (see graph). Thai Airways was up 7.7 per cent, near its highest level since 2007.

The index is up nearly 7 per cent for the month, thanks to foreign investment, but Sukit Udomsirikul of SCB Securities told Bloomberg:

Excessive gains in the currency may force the introduction of foreign exchange measures that would reverse the flow of overseas funds.

South Korea‘s Kospi added 0.3 per cent to 1,872.81, a 7.5-per-cent gain for September. On the day, Samsung Electronics led gains, up 0.7 per cent.

In Vietnam, the Ho Chi Minh index was up 0.4 per cent to 454.52.

Asian currencies rose against the dollar. The Indian rupee was up 0.5 per cent to 4.5 per cent for the month, while the Korean won was up 0.4 per cent, a 5.2 per cent monthly gain.

The Thai baht gained 0.3 per cent, while the Taiwanese dollar added fractionally to its two-year high against the greenback.

The Indonesian rupiah was flat against the dollar, while the Philippine peso slipped 0.1 per cent.