Asian stocks gain, led by Mizuho Financial
Friday, 19 October 2007
SINGAPORE, Oct 18 (Bloomberg): Asian stocks gained for the first time in three days, led by Japanese banks, after JPMorgan Chase & Co. reported profit that beat analyst estimates. BHP Billiton Ltd. climbed after the mining company said the outlook for metals ``remains positive.''
Mizuho Financial Group Inc. rose after a six-day slide and National Australia Bank Ltd. advanced on speculation banks can weather the worst US housing slump since 1991.
Hong Kong's benchmark hit 30,000 for the first time after China Securities Regulatory Commission Vice Chairman Tu Guangshao said yesterday authorities are studying a plan to allow arbitrage between mainland and city-listed shares. Liu Fuhua, a spokesman for the regulator, said late today that Tu ``misspoke,'' declining to confirm whether such a plan is being considered.
``While the problems in the US housing market will probably linger, the worst is over for financial stocks,'' said Shane Oliver, who helps manage $83 billion at AMP Capital Investors in Sydney. He said although it remains to be seen how China would implement such an arbitrage plan, it would ``put upward pressure on Hong Kong stocks, especially those with dual listings.''
The Morgan Stanley Capital International Asia-Pacific Index added 0.9 per cent to 166.88 at 7:12 p.m. in Tokyo, halting a two- day, 2.1 per cent slide. Japan's Nikkei 225 Stock Average gained 0.9 per cent to 17,106.09.
China's CSI 300 Index lost 3.6 per cent, the most in five weeks, while India's Sensitive Index slid 3.8 per cent. Benchmarks also fell in Singapore, India, Indonesia, Thailand and New Zealand.
Acer Inc., the world's fourth-largest personal-computer supplier, climbed in Taipei after researcher IDC said its shipment growth outpaced bigger rivals. Hynix Semiconductor Inc., the world's No. 2 memory chipmaker, slipped after saying profit fell for a second straight quarter.
Most US stocks rose yesterday, helping the Standard & Poor's 500 Index advance for the first time in three days. JPMorgan, the third-biggest US bank, said third-quarter net income rose 2.3 per cent to $3.4 billion, or 97 cents a share. The average analyst estimate in a Bloomberg survey was 90 cents.
Mizuho, Japan's second-largest publicly traded bank, jumped 3.8 per cent to 630,000 yen, its first advance since Oct. 9. Mitsubishi UFJ Financial Group Inc., the No. 1, gained 2.3 per cent to 1,040 yen, also climbing for the first time since Oct. 9. National Australia Bank, the country's biggest, added 1.6 per cent to A$41.29 after yesterday sliding to the lowest since Oct. 4.
Wells Fargo & Co., the biggest US bank on the country's west coast, said this week net credit losses totaled $892 million last quarter. Citigroup Inc. on Oct. 15 reported a 57 per cent drop in its third-quarter profit, while Nomura Holdings Inc., Japan's largest brokerage, said it will post its first quarterly pretax loss in more than four years.
``JPMorgan was better than expected so that's given some investors in the financials some short-term assurance,'' said Steven Marsh, who helps manage the equivalent of $632 million at Trust Co. in Sydney. ``There's some relief.''
Meanwhile, a Commerce Department report yesterday showed housing starts in the US slid 10.2 per cent in September to an annual rate of 1.191 million, a 14-year low. That may strengthen the case for the Federal Reserve to cut interest rates again to keep the economy's six-year expansion alive, economists say.
BHP Billiton, the world's biggest mining company, added 3 per cent to A$47.70. Rio Tinto Group, the third largest, gained 2.6 per cent to A$112.83. Jiangxi Copper Co., China's No. 2 producer of the metal, advanced 4.1 per cent to HK$30.75 in Hong Kong.
Mizuho Financial Group Inc. rose after a six-day slide and National Australia Bank Ltd. advanced on speculation banks can weather the worst US housing slump since 1991.
Hong Kong's benchmark hit 30,000 for the first time after China Securities Regulatory Commission Vice Chairman Tu Guangshao said yesterday authorities are studying a plan to allow arbitrage between mainland and city-listed shares. Liu Fuhua, a spokesman for the regulator, said late today that Tu ``misspoke,'' declining to confirm whether such a plan is being considered.
``While the problems in the US housing market will probably linger, the worst is over for financial stocks,'' said Shane Oliver, who helps manage $83 billion at AMP Capital Investors in Sydney. He said although it remains to be seen how China would implement such an arbitrage plan, it would ``put upward pressure on Hong Kong stocks, especially those with dual listings.''
The Morgan Stanley Capital International Asia-Pacific Index added 0.9 per cent to 166.88 at 7:12 p.m. in Tokyo, halting a two- day, 2.1 per cent slide. Japan's Nikkei 225 Stock Average gained 0.9 per cent to 17,106.09.
China's CSI 300 Index lost 3.6 per cent, the most in five weeks, while India's Sensitive Index slid 3.8 per cent. Benchmarks also fell in Singapore, India, Indonesia, Thailand and New Zealand.
Acer Inc., the world's fourth-largest personal-computer supplier, climbed in Taipei after researcher IDC said its shipment growth outpaced bigger rivals. Hynix Semiconductor Inc., the world's No. 2 memory chipmaker, slipped after saying profit fell for a second straight quarter.
Most US stocks rose yesterday, helping the Standard & Poor's 500 Index advance for the first time in three days. JPMorgan, the third-biggest US bank, said third-quarter net income rose 2.3 per cent to $3.4 billion, or 97 cents a share. The average analyst estimate in a Bloomberg survey was 90 cents.
Mizuho, Japan's second-largest publicly traded bank, jumped 3.8 per cent to 630,000 yen, its first advance since Oct. 9. Mitsubishi UFJ Financial Group Inc., the No. 1, gained 2.3 per cent to 1,040 yen, also climbing for the first time since Oct. 9. National Australia Bank, the country's biggest, added 1.6 per cent to A$41.29 after yesterday sliding to the lowest since Oct. 4.
Wells Fargo & Co., the biggest US bank on the country's west coast, said this week net credit losses totaled $892 million last quarter. Citigroup Inc. on Oct. 15 reported a 57 per cent drop in its third-quarter profit, while Nomura Holdings Inc., Japan's largest brokerage, said it will post its first quarterly pretax loss in more than four years.
``JPMorgan was better than expected so that's given some investors in the financials some short-term assurance,'' said Steven Marsh, who helps manage the equivalent of $632 million at Trust Co. in Sydney. ``There's some relief.''
Meanwhile, a Commerce Department report yesterday showed housing starts in the US slid 10.2 per cent in September to an annual rate of 1.191 million, a 14-year low. That may strengthen the case for the Federal Reserve to cut interest rates again to keep the economy's six-year expansion alive, economists say.
BHP Billiton, the world's biggest mining company, added 3 per cent to A$47.70. Rio Tinto Group, the third largest, gained 2.6 per cent to A$112.83. Jiangxi Copper Co., China's No. 2 producer of the metal, advanced 4.1 per cent to HK$30.75 in Hong Kong.