Asian stocks climb to 15-month high
Friday, 4 December 2009
TOKYO, Dec 3 (Bloomberg): Asian stocks rose, driving the MSCI Asia Pacific Index to a 15-month high, as a weaker yen boosted Japanese exporters and the Federal Reserve said the US economy improved.
Sony Corporation, which gets 23 per cent of its sales in the US, surged 6 per cent in Tokyo, and Honda Motor Co. added 4.2 per cent. Li & Fung Ltd., the biggest supplier of clothes and toys to Wal- Mart Stores Inc., rose 5.7 per cent in Hong Kong as the Fed's Beige Book showed the economy expanded or improved "modestly" across the US from October to mid-November. Kawasaki Kisen Kaisha Ltd., Japan's third-largest shipping line, advanced 6.5 per cent on higher freight rates.
The MSCI Asia Pacific Index rose 1.7 per cent to 121.87 as of 7:32 p.m. in Tokyo, the highest level since Sept. 1, 2008. It has gained 7.1 per cent this week, set for its steepest weekly gain since the period ended May 8. The gauge climbed 73 per cent from a more than five-year low on March 9 on signs government stimulus measures are reviving global growth.
"Things are normalizing," said Prasad Patkar, who helps manage about $1.7 billion at Platypus Asset Management in Sydney. "The US recovery might be more subdued than elsewhere, but it's still a recovery. As long as there are no systemic shocks, there is no underlying, fundamental reason for things to start going backwards."
Japan's Nikkei 225 Stock Average climbed 3.8 per cent, its steepest gain since May 7 and the biggest advance in the Asia- Pacific region today. Mitsubishi Motors Corp. soared 14 per cent on speculation PSA Peugeot Citroen may buy a stake in the carmaker.
South Korea's Kospi Index climbed 1.5 per cent and Hong Kong's Hang Seng Index rose 1.2 per cent. In China, the Shanghai Composite Index lost 0.2 per cent. Futures on the US Standard & Poor's 500 Index added 0.6 per cent. The gauge increased for a third day yesterday after the Fed's comments.
Japan's exporters rose after the yen weakened against all 16 of its major counterparts and traded as low as 87.92 against the dollar today, the lowest level since Nov. 25. The yen retreated for a third day against the euro. That boosts the value of overseas earnings at Japanese companies when converted into their home currency.
Sony, an electronics maker, rose 6 per cent to 2,475 yen. Pioneer Corp., a maker of car-navigation systems and audio equipment, added 5.9 per cent to 268 yen. Honda, which is Japan's second-biggest carmaker and gets 42 per cent of its revenue from North America, climbed 4.2 per cent to 2,985 yen. Nissan Motor Co. rose 6.8 per cent to 706 yen.
The yen climbed to a 14-year high against the dollar last week and has averaged 93.89 this year, the strongest since currencies began trading freely in 1971.
Sony Corporation, which gets 23 per cent of its sales in the US, surged 6 per cent in Tokyo, and Honda Motor Co. added 4.2 per cent. Li & Fung Ltd., the biggest supplier of clothes and toys to Wal- Mart Stores Inc., rose 5.7 per cent in Hong Kong as the Fed's Beige Book showed the economy expanded or improved "modestly" across the US from October to mid-November. Kawasaki Kisen Kaisha Ltd., Japan's third-largest shipping line, advanced 6.5 per cent on higher freight rates.
The MSCI Asia Pacific Index rose 1.7 per cent to 121.87 as of 7:32 p.m. in Tokyo, the highest level since Sept. 1, 2008. It has gained 7.1 per cent this week, set for its steepest weekly gain since the period ended May 8. The gauge climbed 73 per cent from a more than five-year low on March 9 on signs government stimulus measures are reviving global growth.
"Things are normalizing," said Prasad Patkar, who helps manage about $1.7 billion at Platypus Asset Management in Sydney. "The US recovery might be more subdued than elsewhere, but it's still a recovery. As long as there are no systemic shocks, there is no underlying, fundamental reason for things to start going backwards."
Japan's Nikkei 225 Stock Average climbed 3.8 per cent, its steepest gain since May 7 and the biggest advance in the Asia- Pacific region today. Mitsubishi Motors Corp. soared 14 per cent on speculation PSA Peugeot Citroen may buy a stake in the carmaker.
South Korea's Kospi Index climbed 1.5 per cent and Hong Kong's Hang Seng Index rose 1.2 per cent. In China, the Shanghai Composite Index lost 0.2 per cent. Futures on the US Standard & Poor's 500 Index added 0.6 per cent. The gauge increased for a third day yesterday after the Fed's comments.
Japan's exporters rose after the yen weakened against all 16 of its major counterparts and traded as low as 87.92 against the dollar today, the lowest level since Nov. 25. The yen retreated for a third day against the euro. That boosts the value of overseas earnings at Japanese companies when converted into their home currency.
Sony, an electronics maker, rose 6 per cent to 2,475 yen. Pioneer Corp., a maker of car-navigation systems and audio equipment, added 5.9 per cent to 268 yen. Honda, which is Japan's second-biggest carmaker and gets 42 per cent of its revenue from North America, climbed 4.2 per cent to 2,985 yen. Nissan Motor Co. rose 6.8 per cent to 706 yen.
The yen climbed to a 14-year high against the dollar last week and has averaged 93.89 this year, the strongest since currencies began trading freely in 1971.