Asian stocks gain for third month as earnings spur optimism
Monday, 3 May 2010
TOKYO, May 2 (Bloomberg): Asian stocks rose last week, as better-than-estimated company earnings and forecasts boosted confidence in global economic growth. Concerns over Europe's debt crisis weighed on gains.
NEC Corp, Japan's largest maker of personal computers, jumped 5.4 for the week in Tokyo after posting higher-than-forecast net income. Samsung Electronics Co climbed 2.3 per cent in Seoul after reporting record-high profit.
Esprit Holdings Ltd, which makes 85 per cent of its revenue in Europe, tumbled 5.3 per cent in Hong Kong. China Vanke Co, the country's biggest listed property developer, fell 1.6 per cent in the southern city of Shenzhen as China took steps to cool its real-estate market.
"The global economy is picking up and corporate earnings are improving," said Kiyoshi Ishigane, a strategist in Tokyo at Mitsubishi UFJ Asset Management Co, which oversees about $64 billion.
"Investors aren't very, very bullish but cautiously believe the market will remain resilient."
The MSCI Asia Pacific Index rose 0.4 per cent to 125.86 this week, giving the gauge a third straight monthly gain, adding 0.6 per cent in April. The measure has climbed 10 per cent from its low this year on Feb 8 as better-than-estimated economic and earnings reports globally offset concern Greece will default on its debt.
Japan's Topix index rose 0.9 per cent this week as a surge in US new home sales boosted the earnings prospects for Japanese exporters. The market was closed on April 29 for a national holiday.
Hong Kong's Hang Seng Index fell 0.6 per cent this week, while Australia's S&P/ASX 200 Index declined 1.5 per cent. China's Shanghai Composite Index sank 3.8 per cent on concern the government's steps to cool its property market will hurt lenders and developers.
NEC jumped 5.4 per cent to 312 yen this week in Tokyo after saying in a preliminary earnings statement its full-year net income was 11 billion yen, higher than forecast. Canon Inc, the world's largest camera maker, gained 2.6 per cent to 4,355 yen as it raised its full-year net income forecast by 20 per cent. Nissan Motor Co, which counts North America as its biggest market, climbed 3.9 per cent to 823 yen.
Samsung, Asia's biggest maker of semiconductors, flat screens and mobile phones, gained 2.3 per cent to 849,000 won this week in Seoul. The company said first-quarter net income rose almost seven-fold to 3.99 trillion won ($3.6 billion).
Baoshan Iron & Steel Co gained 2.7 per cent to 6.89 yuan in Shanghai. First-half profit may surge by between sixfold and 10-fold from a year ago as Chinese demand for metal used in cars and appliances rebounds, the company said.
The MSCI Asia Pacific Index has rebounded from its low this year as corporate earnings and economic data signalled the global recovery is continuing. The gauge slid 2 per cent on April 28 after downgrades of credit ratings for Greece and Portugal spurred concern Europe's debt crisis will spread.
Shares in the index trade at 16 times estimated earnings, compared with 14.8 times for the Standard & Poor's 500 Index in the US and about 12.5 times for the Stoxx Europe 600 Index.
Esprit slid 5.3 per cent to HK$56.70 for the week in Hong Kong. HSBC Holdings Plc, Europe's largest bank, declined 0.2 per cent to HK$80.95. Australia & New Zealand Banking Group Ltd. fell 4 per cent to A$24.20 in Sydney after its Chief Executive Officer Michael Smith said Europe's debt problems may worsen.
Standard & Poor's cut Spain's credit rating to AA from AA+ on April 28, which followed downgrades the previous day on Greece and Portugal, which the rating company cut to junk status.
NEC Corp, Japan's largest maker of personal computers, jumped 5.4 for the week in Tokyo after posting higher-than-forecast net income. Samsung Electronics Co climbed 2.3 per cent in Seoul after reporting record-high profit.
Esprit Holdings Ltd, which makes 85 per cent of its revenue in Europe, tumbled 5.3 per cent in Hong Kong. China Vanke Co, the country's biggest listed property developer, fell 1.6 per cent in the southern city of Shenzhen as China took steps to cool its real-estate market.
"The global economy is picking up and corporate earnings are improving," said Kiyoshi Ishigane, a strategist in Tokyo at Mitsubishi UFJ Asset Management Co, which oversees about $64 billion.
"Investors aren't very, very bullish but cautiously believe the market will remain resilient."
The MSCI Asia Pacific Index rose 0.4 per cent to 125.86 this week, giving the gauge a third straight monthly gain, adding 0.6 per cent in April. The measure has climbed 10 per cent from its low this year on Feb 8 as better-than-estimated economic and earnings reports globally offset concern Greece will default on its debt.
Japan's Topix index rose 0.9 per cent this week as a surge in US new home sales boosted the earnings prospects for Japanese exporters. The market was closed on April 29 for a national holiday.
Hong Kong's Hang Seng Index fell 0.6 per cent this week, while Australia's S&P/ASX 200 Index declined 1.5 per cent. China's Shanghai Composite Index sank 3.8 per cent on concern the government's steps to cool its property market will hurt lenders and developers.
NEC jumped 5.4 per cent to 312 yen this week in Tokyo after saying in a preliminary earnings statement its full-year net income was 11 billion yen, higher than forecast. Canon Inc, the world's largest camera maker, gained 2.6 per cent to 4,355 yen as it raised its full-year net income forecast by 20 per cent. Nissan Motor Co, which counts North America as its biggest market, climbed 3.9 per cent to 823 yen.
Samsung, Asia's biggest maker of semiconductors, flat screens and mobile phones, gained 2.3 per cent to 849,000 won this week in Seoul. The company said first-quarter net income rose almost seven-fold to 3.99 trillion won ($3.6 billion).
Baoshan Iron & Steel Co gained 2.7 per cent to 6.89 yuan in Shanghai. First-half profit may surge by between sixfold and 10-fold from a year ago as Chinese demand for metal used in cars and appliances rebounds, the company said.
The MSCI Asia Pacific Index has rebounded from its low this year as corporate earnings and economic data signalled the global recovery is continuing. The gauge slid 2 per cent on April 28 after downgrades of credit ratings for Greece and Portugal spurred concern Europe's debt crisis will spread.
Shares in the index trade at 16 times estimated earnings, compared with 14.8 times for the Standard & Poor's 500 Index in the US and about 12.5 times for the Stoxx Europe 600 Index.
Esprit slid 5.3 per cent to HK$56.70 for the week in Hong Kong. HSBC Holdings Plc, Europe's largest bank, declined 0.2 per cent to HK$80.95. Australia & New Zealand Banking Group Ltd. fell 4 per cent to A$24.20 in Sydney after its Chief Executive Officer Michael Smith said Europe's debt problems may worsen.
Standard & Poor's cut Spain's credit rating to AA from AA+ on April 28, which followed downgrades the previous day on Greece and Portugal, which the rating company cut to junk status.