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Hong Kong - Stocks in Asia touched a level not seen since December 2007 as a rally in Chinese companies offset weakness in South Korea and Japan amid speculation of a Saturday missile launch by Pyongyang.
The MSCI Asia Pacific Index climbed 0.4% to 161.71 as of 12:27 p.m. in Hong Kong, led by China Gas, which surged to a record. The Hang Seng China Enterprises Index rose 0.5% while South Korea’s Kospi gauge slipped 0.1%. The Topix was down 0.2% as the yen maintained gains against the dollar after hitting its strongest level since November.
The regional benchmark has climbed almost 20% this year amid a rebound in momentum in China, Asia’s largest economy, recouping most of its losses since the financial crisis. Driving the performance in 2017 are technology giants Tencent, Samsung and Taiwan Semiconductor.
“While fundamentals are improving, Asia’s rally this year is a bit overheated and there may be a technical pullback ahead,” said Margaret Yang, a Singapore-based analyst at CMC Markets.
Korean automakers were among the biggest drags on the Asian benchmark Friday as Hyundai Wia plunged 6% to a four-month low and Hanon Systems slumped 4% the most in a month.
North Korea may test a missile this weekend to coincide with its “founding day” on September 9.
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