Asia stocks gain a second week on commodities, economic reports

Asian stocks rose for a second week, led by oil companies and steelmakers, as crude climbed to a one- year high, brokerages boosted their investment ratings and economic reports pointed to a recovery.

Nippon Steel Corp., the world’s largest steelmaker, added 6.8 percent after Goldman Sachs Group Inc. raised it to “buy” from “neutral.”

PetroChina Co., the world’s second-biggest company by value, gained 7 percent. Lenovo Group Ltd., China’s largest maker of personal computers, jumped 13 percent in Hong Kong as data showed the nation’s export decline slowed. JB Hi-Fi Ltd. climbed 9.5 percent in Sydney after Australian consumer confidence rose and brokers boosted their share-price estimates.

The MSCI Asia Pacific Index advanced 0.7 percent to 119.60 this week, its second week of gains. The gauge has climbed 69 percent from a five-year low on March 9 as better-than-estimated economic and earnings reports increase optimism that the global economy is recovering from the worst slowdown since World War II.

“We’ll see some relatively strong earnings being posted by companies in the coming weeks and there are likely to be more forecast upgrades than downgrades,” said Yoshinori Nagano, a senior strategist in Tokyo at Daiwa Asset Management Co., which oversees the equivalent of $96 billion.

China’s Shanghai Composite Index climbed 2.2 percent this week after the nation’s exports declined at the slowest pace in nine months. Australia’s S&P/ASX 200 Index gained 1.8 percent as an index of consumer sentiment gained 1.7 percent in October. Hong Kong’s Hang Seng Index added 2 percent.

---------Thai stocks drop

Japan’s Nikkei 225 Stock Average gained 2.4 percent, even as producer prices fell for a ninth month. Elpida Memory Inc., Japan’s biggest computer-memory chipmaker, rose 9.2 percent after posting its first operating profit in eight quarters.

Among stocks that fell this week, LG Display Ltd., the world’s second-largest maker of liquid-crystal displays, declined 5.2 percent in Seoul after reporting profit that missed analysts’ estimates. SK Energy Co., South Korea’s biggest oil refiner, sank 7.5 percent after Woori Investment & Securities Co. said refiners may post “earnings shocks” in the third quarter.

Japan Airlines Corp. tumbled 26 percent, the week’s steepest drop among the 978 companies in the MSCI Asia Pacific Index, after the Yomiuri newspaper said lenders may reject requests to forgive some of the carrier’s debts and Kyodo News said the carrier may drop a plan to sell a stake in JALways Co.

Thailand’s SET Index slumped 4 percent this week, the most among 90 national benchmarks tracked by Bloomberg. The gauge lost 5.3 percent on Oct. 15 as the nation’s King Bhumibol Adulyadej remained in hospital for a 26th day.

--------2009 Advance

The MSCI Asia Pacific Index has advanced 34 percent in 2009, on course for its strongest annual gain since 2003. It has outpaced increases of 20 percent for the Standard & Poor’s 500 Index in the U.S. and 24 percent for the Dow Jones Stoxx 600 Index in Europe. The Chinese and Australian reports helped push the MSCI gauge this week to levels not seen since before Lehman Brothers Holdings Inc. collapsed in September 2008. “The data coming out is clearly pointing to a global recovery,” said Nader Naeimi, a Sydney-based strategist at AMP Capital Investors, which manages about $75 billion. “The export numbers tell us that demand even outside China is picking up. The recovery is broadening into the developed world.”

Nippon Steel gained 6.8 percent to 360 yen. JFE Holdings Inc., Japan’s No. 2 steelmaker, climbed 5.8 percent to 3,300 yen after Goldman added the company to its “conviction buy” list. BlueScope Steel Ltd., Australia’s largest steel company, rose 9.7 percent to A$3.29 after Goldman raised the stock to “buy” from “hold.”

(Source:Bloomberg)

   Print Version     |        Back    |     Send To Friend