Asian stocks advance as commodity prices climb
Sunday, 17 June 2007
SYDNEY, June (Bloomberg): Asian stocks rose for a second day, led by BHP Billiton Ltd and Sumitomo Metal Mining Co, after prices of copper, nickel and crude oil climbed.
"Globally, economic growth looks strong enough to sustain high levels of demand for commodities," said Hans Kunnen, who helps manage $107bn at Colonial First State Global Asset Management in Sydney. "You can expect strength to continue in related stocks for as long as that view holds."
China Construction Bank Corp led Hong Kong's Hang Seng Index to a record high after saying it plans to sell shares valued at $5.5bn in Shanghai.
Cathay Financial Holding paced Taiwan's Taiex index to its highest in almost seven years after the island's lawmakers approved a bill to allow insurers to invest more of their assets overseas.
The Morgan Stanley Capital International Asia-Pacific Index advanced 0.6 per cent to 151.55 as of 6.40pm in Tokyo, set for a 0.7 per cent gain this week. Raw materials and energy-related shares jumped the most among the benchmark's 10 industry groups.
Japan's Nikkei 225 Stock Average added 0.7 per cent. Toyota Motor Corp led exporters higher after the yen fell to the lowest against the dollar in four years, boosting the value of US sales.
Benchmarks in South Korea, Singapore, the Philippines and Indonesia also closed at new highs.
BHP, the world's biggest mining company, added 0.3 per cent to A$34. Sumitomo Metal Mining, Japan's second-biggest copper smelter and No. 1 nickel producer, advanced 2.8 per cent to 2,720. CNOOC Ltd, China's biggest offshore oil producer, rose 1.9 per cent to HK$8.46 in Hong Kong.
A measure of six metals traded on the London Metal Exchange gained 1.9 per cent Thursday. Copper prices added 2.2 per cent while nickel jumped 4.9 per cent.
"Globally, economic growth looks strong enough to sustain high levels of demand for commodities," said Hans Kunnen, who helps manage $107bn at Colonial First State Global Asset Management in Sydney. "You can expect strength to continue in related stocks for as long as that view holds."
China Construction Bank Corp led Hong Kong's Hang Seng Index to a record high after saying it plans to sell shares valued at $5.5bn in Shanghai.
Cathay Financial Holding paced Taiwan's Taiex index to its highest in almost seven years after the island's lawmakers approved a bill to allow insurers to invest more of their assets overseas.
The Morgan Stanley Capital International Asia-Pacific Index advanced 0.6 per cent to 151.55 as of 6.40pm in Tokyo, set for a 0.7 per cent gain this week. Raw materials and energy-related shares jumped the most among the benchmark's 10 industry groups.
Japan's Nikkei 225 Stock Average added 0.7 per cent. Toyota Motor Corp led exporters higher after the yen fell to the lowest against the dollar in four years, boosting the value of US sales.
Benchmarks in South Korea, Singapore, the Philippines and Indonesia also closed at new highs.
BHP, the world's biggest mining company, added 0.3 per cent to A$34. Sumitomo Metal Mining, Japan's second-biggest copper smelter and No. 1 nickel producer, advanced 2.8 per cent to 2,720. CNOOC Ltd, China's biggest offshore oil producer, rose 1.9 per cent to HK$8.46 in Hong Kong.
A measure of six metals traded on the London Metal Exchange gained 1.9 per cent Thursday. Copper prices added 2.2 per cent while nickel jumped 4.9 per cent.