By Jonathan Burgos
Feb. 4 (Bloomberg) -- Asian stocks rose for a second day as governments widened efforts to revive economic growth and the region’s automakers strengthened their grip on the U.S. car market.
PT Bank Danamon Indonesia climbed 6.8 percent in Jakarta after the central bank cut interest rates. China Mobile Ltd. gained 2.8 percent in Hong Kong after Xinhua News Agency said the government is releasing more stimulus funds. Hyundai Motor Co. surged 8 percent in Seoul as Asia’s carmakers boosted their U.S. market share to a record in January. Samsung Electronics Co. led technology shares higher as memory-chip prices jumped.
“Asia can recover faster than the rest of the world,” said Khiem Do, a Hong Kong-based strategist at Baring Asset Management, which oversees $6 billion in Asia. “Since global markets plunged in September, Asia has done better and will continue to outperform.”
The MSCI Asia Pacific Index rose 1.9 percent to 83.45 as of 5:33 p.m. in Tokyo, with three stocks advancing for every one that fell. The gauge has dropped 33 percent since the end of August as the credit crisis triggered the collapse of Lehman Brothers Holdings Inc. That’s better than the MSCI World Index’s 37 percent decline.
Japan’s Nikkei 225 Stock Average climbed 2.7 percent. Australia’s S&P/ASX 200 Index fell 2 percent on concern more companies will seek to raise capital selling discounted shares. All other benchmarks rose, except New Zealand and Vietnam.
Elpida Memory Inc. gained 6.2 percent after saying it may seek public funds to shore up its capital. Mitsui O.S.K. Lines Ltd. paced gains among shipping lines as transport rates climbed for an 11th day. Westfield Group, the world’s biggest shopping- center owner by market value, slumped 12 percent in Sydney after selling stock at a discount to reduce debt.
Government Action
Futures on the Standard & Poor’s 500 Index were little changed. The gauge gained 1.6 percent yesterday as Treasury Secretary Timothy Geithner said the government will step up efforts to fight the recession and as a report showed pending home sales rose in December for the first time since August.
Efforts to revive the global economy, burdened by $1 trillion of losses tied to the credit crisis, may be starting to pay off, with a report showing Australian retail sales rose in December by the most in more than eight years as the government handed out cash grants to families and pensioners.
Indonesia’s central bank lowered its benchmark interest rate today for a third straight month. China’s government started investing the second allocation of a 4 trillion yuan ($580 billion) economic stimulus package, the official Xinhua News Agency reported.
‘Positive News’
Danamon, Indonesia’s fifth-biggest bank by assets, surged 6.8 percent to 2,350 rupiah. China Mobile, the world’s largest wireless-phone company by users, gained 2.8 percent to HK$71.25. China Life Insurance Co., the country’s biggest insurance company, climbed 4.6 percent to HK$21.80.
The MSCI gauge is down 6.9 percent in 2009 amid mounting signs the global recession is pummeling corporate profits. Stock declines in the past year have dragged the average valuation of companies on MSCI’s Asian gauge down by 25 percent to 12 times reported profit.
Hyundai Motor jumped 8 percent to 51,900 won. Kia Motors Corp. climbed 12 percent to 8,950 won. Hyundai’s U.S. sales gained 14 percent in January, while Kia’s rose 3.5 percent. The automakers defied lower demand to help Asian brands grab 49.5 percent of the U.S. market. The share of U.S. rivals dropped to a record low 42.5 percent.
“At this point, we are seeing a range-bound market, which is reacting to positive news flow,” said Steven Lim, who manages $300 million at Daiwa SB Investments in Singapore. “If we are again hit by negative news there could be more downside.”
Computer Chips
Toyota Motor Corp., the world’s largest automaker, gained 4.5 percent to 3,010 yen in Tokyo. Its U.S. sales slid 32 percent, less than General Motors Corp.’s 49 percent drop and Ford Motor Co.’s 40 percent slump.
Samsung, the world’s largest computer-memory maker, gained 5.7 percent to 518,000 won. Hynix Semiconductor Inc., the world’s second-largest computer memory maker, rose 4.5 percent to 9,520 won.
Average prices of the benchmark dynamic random access memory chips rose 3.7 percent to $1.12 yesterday, the highest since Oct. 14, according to Dramexchange Technology Inc., Asia’s largest spot market for the chips. Prices have gained as German chipmaker Qimonda AG’s insolvency filing boosted optimism that a glut of supply will ease.
Baltic Dry
Elpida, Japan’s largest computer memory-chip maker, gained 6.2 percent to 648 yen. Japan’s Cabinet yesterday approved a bill for troubled non-financial institutions to obtain public funding, which Elpida said it “will consider using” if it’s passed into law.
Mitsui O.S.K., operator of Japan’s largest fleet of iron- ore ships, added 3.9 percent to 607 yen. STX Pan Ocean Co. Ltd., South Korea’s biggest bulk carrier, rose 6.5 percent to 11,450 won in Seoul.
The Baltic Dry Index, which tracks the cost of shipping commodities like iron ore, added 4.5 percent in London yesterday, extending its best start to a year since at least 1986 on demand to haul iron to China.
Hanjin Shipping Co., South Korea’s largest shipping line, jumped 4.1 percent to 21,700 won. The company said 2008 net income more than doubled on a 35 percent increase in sales.
Westfield slumped 12 percent to A$10.60 after raising A$2.9 billion ($1.9 billion) selling shares at A$10.50 apiece.
To contact the reporter on this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net.
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