Asian stocks have biggest weekly gain this year
Sunday, 7 November 2010
HONG KONG, Nov 6 (Bloomberg): Asian stocks rose this week, driving up the benchmark index by the most this year, on optimism the US Federal Reserve will succeed in stoking growth in the world's biggest economy.
Mitsubishi Corp, Japan's biggest commodities trader, advanced 7.8 per cent in Tokyo as oil and metal prices climbed. Cnooc Ltd, China's biggest offshore oil explorer, jumped 10 per cent in Hong Kong.
BHP Billiton Ltd and Rio Tinto Group, the world's No 1 and No 3 mining companies, climbed more than 5 per cent in Sydney. Nissan Motor Co, Japan's No 3 carmaker, gained 7.6 per cent after reporting higher-than-expected earnings and raising its profit forecast.
"We're seeing follow-through strength in risky assets, suggesting that not all of the US quantitative-easing news was in the price," said Prasad Patkar, who helps manage about $1.8 billion at Platypus Asset Management Ltd in Sydney.
"The market had been expecting a second round of easing, but it appears the rumor wasn't bought to the extent feared. That's why we're not seeing any selling."
The MSCI Asia Pacific Index rose 4.2 per cent this week to 134.82, its steepest increase since the five days ended Dec 4.
The gauge has risen about 12 per cent in 2010 on speculation profits will weather Europe's debt crisis, China's steps to curb property price gains and concern about the pace of US economic growth. Shares in the gauge trade at an average of about 15 times estimated earnings, the highest level since June.
The MSCI index had its biggest two-day gain since May and equity markets rose worldwide after the Federal Reserve said Nov 3 that it will purchase as much as $600 billion of assets through June, expanding record measures to support the US economy.
Japan's Nikkei 225 Stock Average climbed 4.6 per cent in the four days it was open this week. Hong Kong's Hang Seng Index surged 7.7 per cent, South Korea's Kospi Index gained 3 per cent.
China's Shanghai Composite Index surged 5.1 per cent. Australia's S&P/ASX 200 Index rose 3 per cent.
Mitsubishi, which gets more than 40 per cent of its sales from metals and energy, gained 7.8 per cent to 2,086 yen this week. In Hong Kong, Cnooc jumped 10 per cent to HK$17.68 and Jiangxi Copper Co, China's largest producer of the metal, advanced 16 per cent to HK$25.10.
Rio Tinto increased 5.5 per cent to A$87.20. BHP advanced 8 per cent to A$45.27. Canadian regulators blocked BHP's hostile bid for Potash Corp of Saskatchewan Inc.
Crude oil for December delivery advanced to as much as $87.22 a barrel before Asia's main markets closed for the week, the highest price since October 2008. The London Metal Exchange Index of prices for six industrial metals jumped 4.8 per cent this week before Asian trading closed.
Nissan rose 7.6 per cent to 764 yen. The carmaker expects 270 billion yen ($3.3 billion) in net income in the year to March, compared with an earlier forecast of 150 billion yen, the Yokohama-based company said.
Nissan posted 102 billion yen in profit for the three months ended Sept 30, beating the 89 billion yen average estimate of 6 analysts.
Country Garden Holdings Co, a Chinese developer controlled by billionaire Yang Huiyan, soared 16 per cent to HK$3.19 after saying contracted sales jumped 65 per cent in the first 10 months from a year earlier.
About six companies in the MSCI Asia Pacific Index have exceeded profit estimates for every five that have fallen short, based on Bloomberg data compiled from about 450 companies that have reported quarterly results since Oct 7.
Resona Holdings Inc, Japan's fourth-biggest bank, plunged 20 per cent to 512 yen in Tokyo after reports said it plans to sell shares to help repay a government bailout.
Mitsubishi Corp, Japan's biggest commodities trader, advanced 7.8 per cent in Tokyo as oil and metal prices climbed. Cnooc Ltd, China's biggest offshore oil explorer, jumped 10 per cent in Hong Kong.
BHP Billiton Ltd and Rio Tinto Group, the world's No 1 and No 3 mining companies, climbed more than 5 per cent in Sydney. Nissan Motor Co, Japan's No 3 carmaker, gained 7.6 per cent after reporting higher-than-expected earnings and raising its profit forecast.
"We're seeing follow-through strength in risky assets, suggesting that not all of the US quantitative-easing news was in the price," said Prasad Patkar, who helps manage about $1.8 billion at Platypus Asset Management Ltd in Sydney.
"The market had been expecting a second round of easing, but it appears the rumor wasn't bought to the extent feared. That's why we're not seeing any selling."
The MSCI Asia Pacific Index rose 4.2 per cent this week to 134.82, its steepest increase since the five days ended Dec 4.
The gauge has risen about 12 per cent in 2010 on speculation profits will weather Europe's debt crisis, China's steps to curb property price gains and concern about the pace of US economic growth. Shares in the gauge trade at an average of about 15 times estimated earnings, the highest level since June.
The MSCI index had its biggest two-day gain since May and equity markets rose worldwide after the Federal Reserve said Nov 3 that it will purchase as much as $600 billion of assets through June, expanding record measures to support the US economy.
Japan's Nikkei 225 Stock Average climbed 4.6 per cent in the four days it was open this week. Hong Kong's Hang Seng Index surged 7.7 per cent, South Korea's Kospi Index gained 3 per cent.
China's Shanghai Composite Index surged 5.1 per cent. Australia's S&P/ASX 200 Index rose 3 per cent.
Mitsubishi, which gets more than 40 per cent of its sales from metals and energy, gained 7.8 per cent to 2,086 yen this week. In Hong Kong, Cnooc jumped 10 per cent to HK$17.68 and Jiangxi Copper Co, China's largest producer of the metal, advanced 16 per cent to HK$25.10.
Rio Tinto increased 5.5 per cent to A$87.20. BHP advanced 8 per cent to A$45.27. Canadian regulators blocked BHP's hostile bid for Potash Corp of Saskatchewan Inc.
Crude oil for December delivery advanced to as much as $87.22 a barrel before Asia's main markets closed for the week, the highest price since October 2008. The London Metal Exchange Index of prices for six industrial metals jumped 4.8 per cent this week before Asian trading closed.
Nissan rose 7.6 per cent to 764 yen. The carmaker expects 270 billion yen ($3.3 billion) in net income in the year to March, compared with an earlier forecast of 150 billion yen, the Yokohama-based company said.
Nissan posted 102 billion yen in profit for the three months ended Sept 30, beating the 89 billion yen average estimate of 6 analysts.
Country Garden Holdings Co, a Chinese developer controlled by billionaire Yang Huiyan, soared 16 per cent to HK$3.19 after saying contracted sales jumped 65 per cent in the first 10 months from a year earlier.
About six companies in the MSCI Asia Pacific Index have exceeded profit estimates for every five that have fallen short, based on Bloomberg data compiled from about 450 companies that have reported quarterly results since Oct 7.
Resona Holdings Inc, Japan's fourth-biggest bank, plunged 20 per cent to 512 yen in Tokyo after reports said it plans to sell shares to help repay a government bailout.