Asian stocks rise on Apple profit, commodity prices
Thursday, 22 July 2010
TOKYO, July 21 (Bloomberg): Asian stocks rose, driving the MSCI Asia Pacific Index higher for a second straight day, after Apple Inc reported better-than-estimated earnings and commodity prices advanced. Japanese stocks fell as the yen strengthened.
Samsung Electronics Co, which supplies semiconductor to Apple, increased 2.4 per cent in Seoul. BHP Billiton Ltd the world's No 1 mining company, jumped 1.2 per cent in Sydney as a growth in US building permits boosted copper prices. LG Chem Ltd, rallied 4.4 per cent in Seoul on record quarterly profit. Toyota Motor Corp, which gets 67 per cent of its revenue from outside Japan, sank 0.8 per cent as the yen's gains dented the outlook for export earnings.
The MSCI Asia Pacific Index rose 0.3 per cent to at 115.78 as of 5:59 pm in Tokyo. The gauge has slumped 10 per cent from this year's high on April 15 as Europe's debt crisis and China's steps to curb property prices fueled concern that global economic growth will slow. Speculation the US economy will contract intensified as reports pointed to a retreat in manufacturing and home sales.
"We've been buying as the market has been oversold," said Diane Lin, a Sydney-based fund manager at Pengana Capital Ltd which oversees about $1 billion. "We're still very cautious. Overall US economic growth will decelerate but there will be pockets of growth, particularly in the technology sector as reflected by Apple's strong results."
Hong Kong's Hang Seng Index advanced 1.1 per cent, while China's Shanghai Composite Index increased 0.3 per cent. South Korea's Kospi index climbed 0.7 per cent. Australia's S&P/ASX 200 Index added 0.2 per cent.
Japan's Nikkei 225 Stock Average dropped 0.2 per cent, erasing a 1.1 per cent increase, as the yen snapped a two-day loss against the euro and rose versus 15 of 16 major counterparts. A stronger Japanese currency lowers the value of overseas revenue that is repatriated.
Futures on the Standard & Poor's 500 Index gained 0.3 per cent. The gauge climbed 1.1 per cent Tuesday on speculation the Federal Reserve will take steps to spur lending and after a government report showed building permits, a gauge of future construction, rose 2.1 per cent last month.
BHP Billiton, which Wednesday reported a 16 per cent increased in fourth-quarter iron-ore production, rose 1.2 per cent to A$38.75. Copper futures in London rose 0.3 per cent, extending Tuesday's 2 per cent climb, after the report on US building permits bolstered prospects for metals demand.
Rio Tinto Group, the world's third-largest mining company, jumped 2 per cent to A$67.80. Jiangxi Copper Co, China's largest producer of the metal, rose 3 per cent to HK$15.96 in Hong Kong.
"Sentiment has been improving after the better-than- expected US earnings eased investors' concerns about a poor economic outlook," said Michiya Tomita, a Hong Kong-based fund manager for Mitsubishi UFJ Asset Management Co, which oversees $64 billion.
The MSCI Asia Pacific Index has declined 3.9 per cent this year, cutting the average price of stocks in the gauge to 14 times estimated earnings, near the lowest level since December 2008. That compares with 13.2 times for the S&P 500 Index and 11.5 times for the Stoxx Europe 600 Index.
A measure of raw-material producers in the MSCI Asia Pacific Index advanced 1.4 per cent Wednesday, the most of the broader gauge's 10 industry groups.
Samsung Electronics jumped 2.4 per cent to 817,000 won. Companies tied to Apple climbed after the US company posted a 78 per cent surge in third-quarter profit to $3.25 billion, or $3.51 a share, as customers flocked to the new iPad tablet computer and latest version of the iPhone. Analysts surveyed by Bloomberg had forecast per-share profit of $3.11.
Taiwan's Catcher Technology Co climbed 2.6 per cent to NT$78.5. Catcher supplies metal parts for the iPhone, according to Yuanta Securities Co.
LG Chem, a maker of chemicals that also supplies iPhone batteries, gained 4.4 per cent to 335,500 won after quarterly profit jumped to a record on Chinese demand for materials used to make plastics and synthetic rubber.
In Hong Kong, builder New World Development Ltd surged 3.5 per cent to HK$13.58 after the stock was rated "overweight" in new coverage at Morgan Stanley.
Among shares that declined, Woolworths Ltd Australia's biggest retailer, dropped 1.8 per cent to A$26.19 in Sydney after reporting slowing fourth-quarter sales growth.
Japanese exporters dropped as the yen appreciated to 111.85 per euro from 112.70 in New York Tuesday. It rose to 86.98 to the dollar from 87.51, after advancing to 86.27 on July 16, the strongest level since December 1.
Toyota lost 0.8 per cent to 3,030 yen. Nissan Motor Co, which gets a third of its revenue in North America, declined 1 per cent to 607 yen.
Samsung Electronics Co, which supplies semiconductor to Apple, increased 2.4 per cent in Seoul. BHP Billiton Ltd the world's No 1 mining company, jumped 1.2 per cent in Sydney as a growth in US building permits boosted copper prices. LG Chem Ltd, rallied 4.4 per cent in Seoul on record quarterly profit. Toyota Motor Corp, which gets 67 per cent of its revenue from outside Japan, sank 0.8 per cent as the yen's gains dented the outlook for export earnings.
The MSCI Asia Pacific Index rose 0.3 per cent to at 115.78 as of 5:59 pm in Tokyo. The gauge has slumped 10 per cent from this year's high on April 15 as Europe's debt crisis and China's steps to curb property prices fueled concern that global economic growth will slow. Speculation the US economy will contract intensified as reports pointed to a retreat in manufacturing and home sales.
"We've been buying as the market has been oversold," said Diane Lin, a Sydney-based fund manager at Pengana Capital Ltd which oversees about $1 billion. "We're still very cautious. Overall US economic growth will decelerate but there will be pockets of growth, particularly in the technology sector as reflected by Apple's strong results."
Hong Kong's Hang Seng Index advanced 1.1 per cent, while China's Shanghai Composite Index increased 0.3 per cent. South Korea's Kospi index climbed 0.7 per cent. Australia's S&P/ASX 200 Index added 0.2 per cent.
Japan's Nikkei 225 Stock Average dropped 0.2 per cent, erasing a 1.1 per cent increase, as the yen snapped a two-day loss against the euro and rose versus 15 of 16 major counterparts. A stronger Japanese currency lowers the value of overseas revenue that is repatriated.
Futures on the Standard & Poor's 500 Index gained 0.3 per cent. The gauge climbed 1.1 per cent Tuesday on speculation the Federal Reserve will take steps to spur lending and after a government report showed building permits, a gauge of future construction, rose 2.1 per cent last month.
BHP Billiton, which Wednesday reported a 16 per cent increased in fourth-quarter iron-ore production, rose 1.2 per cent to A$38.75. Copper futures in London rose 0.3 per cent, extending Tuesday's 2 per cent climb, after the report on US building permits bolstered prospects for metals demand.
Rio Tinto Group, the world's third-largest mining company, jumped 2 per cent to A$67.80. Jiangxi Copper Co, China's largest producer of the metal, rose 3 per cent to HK$15.96 in Hong Kong.
"Sentiment has been improving after the better-than- expected US earnings eased investors' concerns about a poor economic outlook," said Michiya Tomita, a Hong Kong-based fund manager for Mitsubishi UFJ Asset Management Co, which oversees $64 billion.
The MSCI Asia Pacific Index has declined 3.9 per cent this year, cutting the average price of stocks in the gauge to 14 times estimated earnings, near the lowest level since December 2008. That compares with 13.2 times for the S&P 500 Index and 11.5 times for the Stoxx Europe 600 Index.
A measure of raw-material producers in the MSCI Asia Pacific Index advanced 1.4 per cent Wednesday, the most of the broader gauge's 10 industry groups.
Samsung Electronics jumped 2.4 per cent to 817,000 won. Companies tied to Apple climbed after the US company posted a 78 per cent surge in third-quarter profit to $3.25 billion, or $3.51 a share, as customers flocked to the new iPad tablet computer and latest version of the iPhone. Analysts surveyed by Bloomberg had forecast per-share profit of $3.11.
Taiwan's Catcher Technology Co climbed 2.6 per cent to NT$78.5. Catcher supplies metal parts for the iPhone, according to Yuanta Securities Co.
LG Chem, a maker of chemicals that also supplies iPhone batteries, gained 4.4 per cent to 335,500 won after quarterly profit jumped to a record on Chinese demand for materials used to make plastics and synthetic rubber.
In Hong Kong, builder New World Development Ltd surged 3.5 per cent to HK$13.58 after the stock was rated "overweight" in new coverage at Morgan Stanley.
Among shares that declined, Woolworths Ltd Australia's biggest retailer, dropped 1.8 per cent to A$26.19 in Sydney after reporting slowing fourth-quarter sales growth.
Japanese exporters dropped as the yen appreciated to 111.85 per euro from 112.70 in New York Tuesday. It rose to 86.98 to the dollar from 87.51, after advancing to 86.27 on July 16, the strongest level since December 1.
Toyota lost 0.8 per cent to 3,030 yen. Nissan Motor Co, which gets a third of its revenue in North America, declined 1 per cent to 607 yen.