Asian stocks post biggest weekly advance
Sunday, 16 May 2010
TOKYO, May 15 (Bloomberg): Asian stocks posted the biggest weekly advance in more than a month on signs corporate earnings were improving and as concern eased that European nation's mounting debt will wreck the global economic recovery.
Tencent Holdings Ltd, China's largest Internet company by market value, jumped 6.2 per cent this week as earnings surged. Isuzu Motors Ltd. soared 11 per cent in Tokyo as it forecast earnings will more than double.
Australia & New Zealand Banking Group Ltd climbed 4.5 per cent as European policy makers unveiled loan packages for debt-laden nations.
The MSCI Asia Pacific Index rose about 1.6 per cent to 120.00 this week, the most since the period ended April 4. The index has fallen about 7.1 per cent from a 20-month high on April 15, as Europe's debt crisis and concern China will quell inflation eroded confidence in the global economic recovery.
"The underlying message from the economy and corporate earnings is that we're on the recovery path," said Prasad Patkar, who helps manage $1.7 billion in Sydney at Platypus Asset Management Ltd.
"The disruptions in the European Union over the last few weeks could have interfered with that process of healing. But the decisive action taken means the recovery won't get cut short."
Australia's S&P/ASX 200 Index and South Korea's Kospi Index both advanced 2.9 per cent this week. The Nikkei 225 Stock Average rose 0.9 per cent in Tokyo.
The Philippines Stock Exchange Index surged 6 per cent, the biggest weekly climb in a year, as Benigno Aquino headed for a landslide presidential election victory, easing concern the result would be contested.
Tencent jumped 6.2 per cent to HK$161.40. First-quarter net income soared 72 per cent on higher revenue from online games and advertising, the company said on May 12.
Isuzu, Japan's largest maker of light-duty trucks, soared 11 per cent to 311 yen, its biggest weekly jump this year. The company forecast on May 11 that net income will more than double this year, saying demand was expected to recover in emerging markets.
"The upward momentum for corporate earnings will continue and that's where investors will focus," said Kiyoshi Ishigane, a strategist in Tokyo at Mitsubishi UFJ Asset Management Co, which oversees about $64 billion.
Analysts expect earnings per share at companies in the MSCI Asia Pacific Index to rise 53 per cent in the next 12 months, compared with 26 per cent for those in the S&P 500 and 38 per cent for those in the Stoxx Europe 600 Index, according to data.
Australia & New Zealand Banking rose 4.2 per cent to A$22.81, while Westpac Banking Corp advanced 3 per cent to A$24.89. National Australia Bank Ltd gained 3.2 per cent to A$25.37.
Governments of the 16 euro nations agreed on May 10 to make loans of as much as 750 billion euros ($940 billion) available to countries facing instability. In the week ended May 7, the Stoxx Europe 600 Index tumbled 8.8 per cent as the European Central Bank failed to ease concern Greece's fiscal crisis would intensify across the region.
Tencent Holdings Ltd, China's largest Internet company by market value, jumped 6.2 per cent this week as earnings surged. Isuzu Motors Ltd. soared 11 per cent in Tokyo as it forecast earnings will more than double.
Australia & New Zealand Banking Group Ltd climbed 4.5 per cent as European policy makers unveiled loan packages for debt-laden nations.
The MSCI Asia Pacific Index rose about 1.6 per cent to 120.00 this week, the most since the period ended April 4. The index has fallen about 7.1 per cent from a 20-month high on April 15, as Europe's debt crisis and concern China will quell inflation eroded confidence in the global economic recovery.
"The underlying message from the economy and corporate earnings is that we're on the recovery path," said Prasad Patkar, who helps manage $1.7 billion in Sydney at Platypus Asset Management Ltd.
"The disruptions in the European Union over the last few weeks could have interfered with that process of healing. But the decisive action taken means the recovery won't get cut short."
Australia's S&P/ASX 200 Index and South Korea's Kospi Index both advanced 2.9 per cent this week. The Nikkei 225 Stock Average rose 0.9 per cent in Tokyo.
The Philippines Stock Exchange Index surged 6 per cent, the biggest weekly climb in a year, as Benigno Aquino headed for a landslide presidential election victory, easing concern the result would be contested.
Tencent jumped 6.2 per cent to HK$161.40. First-quarter net income soared 72 per cent on higher revenue from online games and advertising, the company said on May 12.
Isuzu, Japan's largest maker of light-duty trucks, soared 11 per cent to 311 yen, its biggest weekly jump this year. The company forecast on May 11 that net income will more than double this year, saying demand was expected to recover in emerging markets.
"The upward momentum for corporate earnings will continue and that's where investors will focus," said Kiyoshi Ishigane, a strategist in Tokyo at Mitsubishi UFJ Asset Management Co, which oversees about $64 billion.
Analysts expect earnings per share at companies in the MSCI Asia Pacific Index to rise 53 per cent in the next 12 months, compared with 26 per cent for those in the S&P 500 and 38 per cent for those in the Stoxx Europe 600 Index, according to data.
Australia & New Zealand Banking rose 4.2 per cent to A$22.81, while Westpac Banking Corp advanced 3 per cent to A$24.89. National Australia Bank Ltd gained 3.2 per cent to A$25.37.
Governments of the 16 euro nations agreed on May 10 to make loans of as much as 750 billion euros ($940 billion) available to countries facing instability. In the week ended May 7, the Stoxx Europe 600 Index tumbled 8.8 per cent as the European Central Bank failed to ease concern Greece's fiscal crisis would intensify across the region.