Asian stocks rise on metals, oil prices
Friday, 21 September 2007
TOKYO, Sept 20 (Bloomberg): Asian stocks advanced to an eight- week high as a jump in metals prices boosted commodity producers BHP Billiton Ltd. and Jiangxi Copper Co.
BHP, the world's largest mining company, rose to a record and Jiangxi Copper climbed the most in three weeks amid speculation a bigger-than-expected interest-rate cut in the US will buoy global economic growth, increasing demand for metals. South Korea's Hyundai Heavy Industries Co gained after posting 20 per cent higher sales.
``Investors can be relatively confident about buying steelmaker and commodity-related stocks,'' said Yasuhiko Hirakawa, who helps manage the equivalent of $80 billion at DLIBJ Asset Management Co. in Tokyo. ``Strong demand for their products is supported by growth in emerging nations.''
Posco gained after receiving a $350 million order to build India's biggest blast furnace. China Mobile Ltd. climbed after adding a near record number of subscribers.
The Morgan Stanley Capital International Asia-Pacific Index advanced 0.9 per cent to 156.04 at 7:16 p.m. in Tokyo, set for its highest close since July 26. Materials producers posted the biggest gain among the benchmark's 10 industry groups.
Taiwan's Taiex Index climbed 0.6 per cent on expectations the US Federal Reserve's rate reduction on September 18 to prop up the world's largest economy will boost demand for products of AU Optronics Corp. and Asustek Computer Inc. Other Asian markets advanced except Singapore, Indonesia, Sri Lanka and Pakistan.
US stocks yesterday extended their biggest rally in four years, amid speculation lower rates will help contain a housing slump. The Fed lowered its federal funds rate to 4.75 per cent from 5.25 per cent, the first cut in four years. Most economists in a Bloomberg News survey expected a quarter-point reduction. The Standard & Poor's 500 Index rose 0.6 per cent.
BHP, Australia's biggest oil explorer, added 1.4 per cent to A$41.01. Nippon Steel, Japan's largest maker of the alloy, gained 1.4 per cent to 805 yen. Jiangxi Copper, China's largest publicly traded producer of the metal, climbed 6.9 per cent to HK$20.35 in Hong Kong, its biggest gain since Aug. 27.
A measure of six metals traded on the London Metal Exchange, jumped 4.6 per cent yesterday, the most since Jan. 10. Copper added 4 per cent and nickel surged 9.9 per cent, its biggest gain in three years. Zinc added 5.1 per cent, the most in five months.
China's economy has grown more than 10 per cent in each of the past four years, fueling demand for metals. The country is the No. 1 consumer of copper, steel and aluminum.
Santos Ltd., Australia's third-biggest oil and gas producer, advanced 3.4 per cent to A$14.68. PetroChina Co., the nation's largest oil producer, rose 3.1 per cent to HK$12.38 in Hong Kong.
Oil jumped 0.5 per cent to $81.93 a barrel in New York yesterday after a US Energy Department report showed the nation's crude inventories fell 3.87 million barrels last week, almost twice the decline forecast by analysts.
Hyundai Heavy, the world's largest shipbuilder, climbed 5.1 per cent to 415,000 won. The company said its August sales increased 20 per cent as it built more vessels at higher prices.
``With the third quarter nearly over, earnings expectations are the most important factor in driving the shares,'' said Park Seh Ick, who oversees an equivalent of $1.3 billion at Hanwha Investment Trust Management Co. in Seoul.
AU Optronics, Taiwan's largest maker of liquid-crystal displays, added 3.8 per cent to NT$51.60. Asustek Computer, the world's largest maker of boards that connect computer parts, climbed 1.4 per cent to NT$97.90. The US is Taiwan's largest export market after China.
``The US interest-rate cut should boost the US economy, which will help Taiwan,'' said Michael On, who manages $100 million at Beyond Asset Management Co. in Taipei.
South Korea's Posco, Asia's third-largest steelmaker, rose 3.1 per cent to 670,000 won after the company received a $350 million order to build India's biggest blast furnace for the Steel Authority of India.
BHP, the world's largest mining company, rose to a record and Jiangxi Copper climbed the most in three weeks amid speculation a bigger-than-expected interest-rate cut in the US will buoy global economic growth, increasing demand for metals. South Korea's Hyundai Heavy Industries Co gained after posting 20 per cent higher sales.
``Investors can be relatively confident about buying steelmaker and commodity-related stocks,'' said Yasuhiko Hirakawa, who helps manage the equivalent of $80 billion at DLIBJ Asset Management Co. in Tokyo. ``Strong demand for their products is supported by growth in emerging nations.''
Posco gained after receiving a $350 million order to build India's biggest blast furnace. China Mobile Ltd. climbed after adding a near record number of subscribers.
The Morgan Stanley Capital International Asia-Pacific Index advanced 0.9 per cent to 156.04 at 7:16 p.m. in Tokyo, set for its highest close since July 26. Materials producers posted the biggest gain among the benchmark's 10 industry groups.
Taiwan's Taiex Index climbed 0.6 per cent on expectations the US Federal Reserve's rate reduction on September 18 to prop up the world's largest economy will boost demand for products of AU Optronics Corp. and Asustek Computer Inc. Other Asian markets advanced except Singapore, Indonesia, Sri Lanka and Pakistan.
US stocks yesterday extended their biggest rally in four years, amid speculation lower rates will help contain a housing slump. The Fed lowered its federal funds rate to 4.75 per cent from 5.25 per cent, the first cut in four years. Most economists in a Bloomberg News survey expected a quarter-point reduction. The Standard & Poor's 500 Index rose 0.6 per cent.
BHP, Australia's biggest oil explorer, added 1.4 per cent to A$41.01. Nippon Steel, Japan's largest maker of the alloy, gained 1.4 per cent to 805 yen. Jiangxi Copper, China's largest publicly traded producer of the metal, climbed 6.9 per cent to HK$20.35 in Hong Kong, its biggest gain since Aug. 27.
A measure of six metals traded on the London Metal Exchange, jumped 4.6 per cent yesterday, the most since Jan. 10. Copper added 4 per cent and nickel surged 9.9 per cent, its biggest gain in three years. Zinc added 5.1 per cent, the most in five months.
China's economy has grown more than 10 per cent in each of the past four years, fueling demand for metals. The country is the No. 1 consumer of copper, steel and aluminum.
Santos Ltd., Australia's third-biggest oil and gas producer, advanced 3.4 per cent to A$14.68. PetroChina Co., the nation's largest oil producer, rose 3.1 per cent to HK$12.38 in Hong Kong.
Oil jumped 0.5 per cent to $81.93 a barrel in New York yesterday after a US Energy Department report showed the nation's crude inventories fell 3.87 million barrels last week, almost twice the decline forecast by analysts.
Hyundai Heavy, the world's largest shipbuilder, climbed 5.1 per cent to 415,000 won. The company said its August sales increased 20 per cent as it built more vessels at higher prices.
``With the third quarter nearly over, earnings expectations are the most important factor in driving the shares,'' said Park Seh Ick, who oversees an equivalent of $1.3 billion at Hanwha Investment Trust Management Co. in Seoul.
AU Optronics, Taiwan's largest maker of liquid-crystal displays, added 3.8 per cent to NT$51.60. Asustek Computer, the world's largest maker of boards that connect computer parts, climbed 1.4 per cent to NT$97.90. The US is Taiwan's largest export market after China.
``The US interest-rate cut should boost the US economy, which will help Taiwan,'' said Michael On, who manages $100 million at Beyond Asset Management Co. in Taipei.
South Korea's Posco, Asia's third-largest steelmaker, rose 3.1 per cent to 670,000 won after the company received a $350 million order to build India's biggest blast furnace for the Steel Authority of India.