By Chen Shiyin and Shani Raja
Aug. 29 (Bloomberg) -- Asian stocks gained the most in four months, led by automakers and technology companies, after the U.S. economy grew faster than estimated, bolstering optimism that exporters' earnings will improve.
Toyota Motor Corp., which gets more than a third of its sales from North America, added 3.4 percent. Nintendo Co. soared 8.4 percent after the maker of the Wii video-game console raised its profit forecast. Baoshan Iron & Steel Co. and Bank of China Ltd. both advanced more than 2 percent after the companies posted profits that topped analyst estimates.
``The U.S. economy just refuses to roll over, despite the most dire predictions,'' said Prasad Patkar, who helps manage the equivalent of about $1.8 billion at Platypus Asset Management in Sydney. ``Such a strong performance from the world's largest economy is a big positive. It helps repair the fragile sentiment and, more fundamentally, supports the global economy.''
The MSCI Asia Pacific Index climbed 2.1 percent to 125.03 as of 3:20 p.m. in Tokyo, paring its August decline to 5.5 percent and set for its biggest rally since April 21. The benchmark index is up 2.8 percent this week.
The regional measure has dropped 21 percent this year as the world's largest financial companies posted writedowns and credit losses of more than $500 billion, and inflation soared.
Japan's Nikkei 225 Stock Average added 2.4 percent to 13,072.87. JFE Holdings Inc., Japan's No. 2 steelmaker, jumped after the nation's trade ministry said industrial production unexpectedly rebounded. Stock indexes advanced in most regional markets open for trading.
Advances were capped after Fujifilm Holdings Corp. cut its full-year forecast, sending the shares to their largest drop in 27 years.
Economic Growth
U.S. stocks climbed the most in three weeks after the Commerce Department said gross domestic product grew at a 3.3 percent annual rate. Standard & Poor's 500 Index futures fell 0.2 percent today on concern a report today will show consumer spending slowed in July.
Toyota, Japan's largest automaker that yesterday cut its forecast for 2009 vehicle sales growth, rose 160 yen to 4,930. Canon Inc., the world's biggest maker of digital cameras, added 3.3 percent to 4,950 yen. Westfield Group, the owner of 55 U.S. shopping malls, advanced 1.7 percent to A$17.29.
The U.S. government's initial estimate of economic growth was 1.9 percent last month and economists in a Bloomberg survey on average projected 2.7 percent. The data follows an unexpected advance in durable goods orders that helped boost U.S. stocks this week.
Reversing the Headwinds
``If you believe GDP's not going to worsen from this point onwards, the implication is that the U.S. will avoid going into a deep recession,'' said Jason Teh, who helps manage the equivalent of $5.7 billion at Investors Mutual Ltd. in Sydney. ``The hope is that the headwinds the global economy has been facing will be reversed when the U.S. pulls the whole world out from its demise.''
Nintendo jumped 4,000 yen to 51,800 in Osaka, extending advances after the company raised its full-year net income estimate by 26 percent, citing a weaker yen and sales of its DS and Wii players.
Japan's factory output increased 0.9 percent in July from the previous month, when it fell 2.2 percent, the government said today. The median estimate of 37 economists surveyed by Bloomberg News was for a 0.3 percent decline.
JFE surged 4.7 percent to 4,660 yen, its largest gain since July 14. Nippon Steel Corp., the world's second-largest steelmaker, gained 5.4 percent to 523 yen. Komatsu Ltd., the world's second-largest maker of earthmovers, rose 3.8 percent to 2,315 yen, halting a three-day, 6.3 percent decline.
Nisshinbo, Baoshan
Nisshinbo Industries Inc. soared 10 percent to 1,213 yen, the largest rally in a year, after the maker of textiles, chemicals and machine tools said it will retire part of its shares. The company also said it plans to strengthen its solar and battery-related operations in Japan to meet growing demand.
Baoshan Iron & Steel added 0.28 yuan, or 4.5 percent, to 6.56 after saying second-quarter profit rose 20 percent to record 5.39 billion yuan ($789 million), helped by higher prices and demand for automobile sheets and ship plates. Analysts surveyed by Bloomberg had a median estimate of 4.9 billion yuan.
Bank of China rose 8 cents, or 2.4 percent, to HK$3.40 in Hong Kong, after saying yesterday net income increased 43 percent in the first half to 42.2 billion yuan, beating the 41.2 billion yuan average estimate of analysts compiled by Bloomberg.
The bank's 66 percent-owned unit, BOC Hong Kong (Holdings) Ltd., slumped 3.7 percent to HK$17.44 after its earnings fell 5 percent yesterday to HK$7.09 billion ($908 million) and Credit Suisse Group cut its share price target by 12 percent to HK$22.
Fujifilm, Doosan
Fujifilm Holdings, the world's biggest maker of liquid- crystal display film, slumped 12 percent to 3,030 yen, its largest decline since September 1981. The company said yesterday net income for the year ending March 31 will be 80 billion yen ($734 million), down from a previous estimate of 110 billion yen.
Doosan Infracore Co. plunged 15 percent to 21,250 won, the biggest retreat on MSCI's Asian index. The company said yesterday that it and an affiliate will inject a total of $1 billion into its Bobcat unit.
Merrill Lynch & Co. cut its rating on Doosan Infracore to ``underperform'' from ``buy,'' saying the ``sudden'' decision raises concerns about the management's credibility.
To contact the reporter for this story: Chen Shiyin in Singapore at schen37@bloomberg.net; Shani Raja in Sydney at sraja4@bloomberg.net.
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