Asian stocks, currencies rise on Japan, China data; gold gains

Asian stocks and the currencies rose as Japan’s machinery orders surged, China’s industrial production accelerated and South Korea’s unemployment fell. Gold futures reached a record high.

The MSCI Asia Pacific Index advanced 0.4 percent to 118.57 as of 4:27 p.m. in Tokyo, extending its four-day increase to 3.4 percent. The Japanese yen climbed on confidence exports will pick up as Asian growth accelerates. China’s Shanghai Composite Index reversed gains as lending growth slowed in October.

HSBC Holdings Plc led the advance in Hong Kong after saying third-quarter profit was “surprisingly ahead” of its projections. Nippon Telegraph & Telephone Corp., Japan’s former telephone monopoly, rose after Goldman Sachs Group Inc. recommended buying the shares.

“Asian economies are set to recover ahead of other regions,” said Soichiro Monji, chief strategist at Tokyo-based Daiwa SB Investments Ltd., which manages the equivalent of $38 billion. “That’s the reason why exports and industrial production are improving so quickly. Next year’s growth will be led by Asian economies.”

----------Gold

Treasury Secretary Timothy Geithner said a strong dollar is in the nation’s interest and the government recognizes the importance it plays in the global financial system.

Gold futures in New York increased for an eighth-straight session Wednesday in after-hours trading, rising to a record $1,111.40 an ounce.

Newcrest Mining Ltd., Australia’s largest gold producer, gained 0.5 percent.

--------HSBC

Daikin Industries Ltd., the world’s No. 2 air conditioner maker, jumped 2.5 percent after lifting its annual profit forecast due to an improved outlook for sales in China.

HSBC, Europe’s biggest bank, rallied 5.6 percent to HK$93.65, after it said third-quarter pretax profit was “significantly” higher than a year earlier.

“Most of the markets have done better than what we expected,” Asia-Pacific Chief Executive Officer Sandy Flockhart said in an interview with Bloomberg Television in Hong Kong today. “Our businesses in Asia, Middle East and Latin America have performed well while the impairment situation in the U.S. is getting better.”

NTT rallied 4.5 percent to 3,750 yen after the stock was added to Goldman Sachs Group Inc.’s “conviction buy” list as the company is likely to buy back shares from the government amid improving profitability. Yakult Honsha Co., a health drink maker, surged 5.8 percent to 2,555 yen after Nomura Holdings Inc. boosted the shares to “neutral” from “reduce,” citing growth in the Chinese market.

(Source: Bloomberg)

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