Asian Stocks Rise for Third Day on Growth Optimism; BHP Gains
July 16 (Bloomberg) -- Asian stocks advanced for a third day, led by automakers and mining companies, as an improvement in U.S. manufacturing and rising commodity prices fueled optimism that the global economy is recovering.
Toyota Motor Corp., which gets 31 percent of sales from North America, gained 2.9 percent. Komatsu Ltd., the world's No. 2 maker of earthmoving equipment, jumped 5 percent. BHP Billiton Ltd., the world's biggest mining company, rose 2.3 percent on higher oil and copper prices. Canon Inc., the world's largest camera maker, climbed 3.3 percent after the Nikkei newspaper reported earnings will rise.
The MSCI Asia Pacific Index advanced 1.8 percent to 103.43 as of 11:27 a.m. in Tokyo, taking its three-day gain to 5.5 percent. The gauge has rallied 47 percent from a more than five- year low on March 9 amid optimism government stimulus policies around the world will revive the global economy.
"This upward trend will continue for some time, as economic indicators have confirmed the economy is recovering," said Harvey Chang, a SinoPac Securities Investment Trust Co. fund manager who helps oversee about $1.5 billion. "There's plenty of money in the market."
Japan's Nikkei 225 Stock Average jumped 2.2 percent, while Hong Kong's Hang Seng Index rose 1.8 percent. South Korea's Kospi Index gained 0.7 percent. China's Shanghai Composite Index added 0.3 percent as the country's statistics bureau said the economy grew 7.9 percent in the second quarter.
Copper, Oil
Futures on Standard & Poor's 500 Index lost 0.5 percent as lender CIT Group Inc. said it probably won't receive a federal bailout. The S&P 500 climbed 3 percent in New York yesterday after Federal Reserve figures showed industrial production shrank 0.4 percent last month, the least in eight months. The New York Fed's Empire Index rose to minus 0.6 this month, the highest level since April 2008.
Optimism the expansion of manufacturing will boost demand for materials lifted prices for copper and oil. Copper futures leapt 4.1 percent in New York, the most since June 9. Crude oil jumped 3.4 percent, the steepest climb since June 23.
BHP Billiton rose 2 percent to A$34.97. Rio Tinto Ltd., the world's third-largest mining company jumped 4.2 percent to A$52.17. Mitsubishi Corp., which gets almost half of its sales from commodities, climbed 5.9 percent to 1,716 yen in Tokyo.
Toyota gained 2.9 percent to 3,570 yen. Honda Motor Co., which makes 45 percent of its revenue in North America, advanced 2.7 percent to 2,510 yen. Komatsu, which gets 25 percent of its sales from the Americas, jumped 5.1 percent to 1,451 yen.
Economic Improvements?
Japanese exporters also rose as the yen weakened to as low as 94.45 per dollar from 93.57 at the 3 p.m. close of stock trading in Tokyo yesterday. A weaker yen raises the value of overseas revenues that are repatriated back into the local currency.
The MSCI Asia Pacific index is heading for its first weekly gain in three amid signs Asian economies are rebounding. Stocks on the gauge are valued at an average 43 times reported earnings, up from the 15 times stocks were trading at during the market's trough in March. Companies on the S&P 500 are currently at 14.8 times profit.
Singapore on July 14 forecast a narrower contraction in its gross domestic product this year. New home sales in the city- state jumped 9.1 percent last month, government data released yesterday showed. Australian business sentiment turned positive in June for the first time since December 2007, a National Australia Bank Ltd. index released on July 14 showed.
"A rebound in the economy won't be very fast but we don't have to be too pessimistic in that the situation is getting better," said Mitsushige Akino, who oversees the equivalent of $522 million at Ichiyoshi Investment Management Co. "I'm expecting relatively good earnings reports from companies because they have finished clearing inventories."
Baltic Dry
Canon climbed 3.3 percent to 3,130 yen. The company will likely report about 30 billion yen ($319 million) in operating profit for the three months to June, a 50 percent increase from the previous quarter, the Nikkei newspaper reported today. Demand for cameras grew, while that for office equipment remained weak, the newspaper said.
Shipping stocks gained after cargo rates rose. The Baltic Dry Index, which measures the cost of shipping commodities, climbed 7.3 percent in London yesterday, taking gains in the past two days to 12 percent.
STX Pan Ocean Ltd., South Korea's biggest bulk carrier, gained 2.3 percent to 11,200 won in Seoul. Mitsui O.S.K. Lines Ltd., the world's largest operator of iron-ore vessels, advanced 4.4 percent to 599 yen in Tokyo.
To contact the reporter for this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net Weiyi Lim in Taipei at Wlim26@bloomberg.net .
July 16 (Bloomberg) -- Asian stocks advanced for a third day, led by automakers and mining companies, as an improvement in U.S. manufacturing and rising commodity prices fueled optimism that the global economy is recovering.
Toyota Motor Corp., which gets 31 percent of sales from North America, gained 2.9 percent. Komatsu Ltd., the world's No. 2 maker of earthmoving equipment, jumped 5 percent. BHP Billiton Ltd., the world's biggest mining company, rose 2.3 percent on higher oil and copper prices. Canon Inc., the world's largest camera maker, climbed 3.3 percent after the Nikkei newspaper reported earnings will rise.
The MSCI Asia Pacific Index advanced 1.8 percent to 103.43 as of 11:27 a.m. in Tokyo, taking its three-day gain to 5.5 percent. The gauge has rallied 47 percent from a more than five- year low on March 9 amid optimism government stimulus policies around the world will revive the global economy.
"This upward trend will continue for some time, as economic indicators have confirmed the economy is recovering," said Harvey Chang, a SinoPac Securities Investment Trust Co. fund manager who helps oversee about $1.5 billion. "There's plenty of money in the market."
Japan's Nikkei 225 Stock Average jumped 2.2 percent, while Hong Kong's Hang Seng Index rose 1.8 percent. South Korea's Kospi Index gained 0.7 percent. China's Shanghai Composite Index added 0.3 percent as the country's statistics bureau said the economy grew 7.9 percent in the second quarter.
Copper, Oil
Futures on Standard & Poor's 500 Index lost 0.5 percent as lender CIT Group Inc. said it probably won't receive a federal bailout. The S&P 500 climbed 3 percent in New York yesterday after Federal Reserve figures showed industrial production shrank 0.4 percent last month, the least in eight months. The New York Fed's Empire Index rose to minus 0.6 this month, the highest level since April 2008.
Optimism the expansion of manufacturing will boost demand for materials lifted prices for copper and oil. Copper futures leapt 4.1 percent in New York, the most since June 9. Crude oil jumped 3.4 percent, the steepest climb since June 23.
BHP Billiton rose 2 percent to A$34.97. Rio Tinto Ltd., the world's third-largest mining company jumped 4.2 percent to A$52.17. Mitsubishi Corp., which gets almost half of its sales from commodities, climbed 5.9 percent to 1,716 yen in Tokyo.
Toyota gained 2.9 percent to 3,570 yen. Honda Motor Co., which makes 45 percent of its revenue in North America, advanced 2.7 percent to 2,510 yen. Komatsu, which gets 25 percent of its sales from the Americas, jumped 5.1 percent to 1,451 yen.
Economic Improvements?
Japanese exporters also rose as the yen weakened to as low as 94.45 per dollar from 93.57 at the 3 p.m. close of stock trading in Tokyo yesterday. A weaker yen raises the value of overseas revenues that are repatriated back into the local currency.
The MSCI Asia Pacific index is heading for its first weekly gain in three amid signs Asian economies are rebounding. Stocks on the gauge are valued at an average 43 times reported earnings, up from the 15 times stocks were trading at during the market's trough in March. Companies on the S&P 500 are currently at 14.8 times profit.
Singapore on July 14 forecast a narrower contraction in its gross domestic product this year. New home sales in the city- state jumped 9.1 percent last month, government data released yesterday showed. Australian business sentiment turned positive in June for the first time since December 2007, a National Australia Bank Ltd. index released on July 14 showed.
"A rebound in the economy won't be very fast but we don't have to be too pessimistic in that the situation is getting better," said Mitsushige Akino, who oversees the equivalent of $522 million at Ichiyoshi Investment Management Co. "I'm expecting relatively good earnings reports from companies because they have finished clearing inventories."
Baltic Dry
Canon climbed 3.3 percent to 3,130 yen. The company will likely report about 30 billion yen ($319 million) in operating profit for the three months to June, a 50 percent increase from the previous quarter, the Nikkei newspaper reported today. Demand for cameras grew, while that for office equipment remained weak, the newspaper said.
Shipping stocks gained after cargo rates rose. The Baltic Dry Index, which measures the cost of shipping commodities, climbed 7.3 percent in London yesterday, taking gains in the past two days to 12 percent.
STX Pan Ocean Ltd., South Korea's biggest bulk carrier, gained 2.3 percent to 11,200 won in Seoul. Mitsui O.S.K. Lines Ltd., the world's largest operator of iron-ore vessels, advanced 4.4 percent to 599 yen in Tokyo.
To contact the reporter for this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net Weiyi Lim in Taipei at Wlim26@bloomberg.net .
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