Tencent market cap climbs to around $530 billion; Hang Seng up nearly 2%
Asian stocks rose Tuesday, following overseas gains overnight and as the hot tech sector continued to drive the region's equities.
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Chinese messaging and gaming giant Tencent (0700.HK) rose 2.4%, with its share price having more than doubled this year and contributing to the Hong Kong's Hang Seng Index's gain of 35.5% in the same period. The benchmark rose 1.9% on Tuesday.
Tencent's earlier gains (http://www.marketwatch.com/story/hong-kongs-tencent-beats-chinas-alibaba-to-the-500-billion-market-cap-club-2017-11-20) had put the company's market capitalization at around $530 billion, larger than Facebook's (FB) , after hitting $500 billion for the first time Monday.
"It is difficult to imagine fund managers not having to buy this stock," said Hao Hong, head of research at Bocom International. Tencent last week posted third-quarter earnings growth (http://www.marketwatch.com/story/tencent-net-profit-rises-nearly-70-beating-views-2017-11-15) of nearly 70%.
C.Y. Fung is among those contending that the broader market, and Tencent shares themselves, are still undervalued.
"We are seeing pretty healthy growth in Asia with earnings better than expected," the portfolio manager at Chinese asset-management firm Harvest Global Investments noted.
Indexes in Singapore and Taiwan each rose 1.1%, the latter on strength in tech and financials.
Japan's Nikkei ended 0.7% higher after an earlier setback in the yen; the index had finished down seven days in the past nine following October's big gains.
As German political worries eased, the dollar fell 0.2% against the yen to Yen112.4470 after a safe-haven boost Monday.
Chinese stocks rose, with the Shanghai Composite up 0.5% and the Shenzhen Composite up 1.4%.
The Australian dollar hit a five-month low against the U.S. dollar after the minutes of this month's central-bank meeting showed officials continue to fret about slow domestic wage growth. Australia's S&P/ASX 200 stock index closed up 0.3%, while the Australian dollar was last up 0.2% against the greenback.
(END) Dow Jones Newswires
November 21, 2017 07:14 ET (12:14 GMT)