Asian Stocks Rise as Japanese Production Fuels Growth Optimism

By Masaki Kondo

April 30 (Bloomberg) -- Asian stocks rose, with the regional benchmark index headed for its best month in 10 years, as better-than-expected Japanese production and U.S. consumer spending fueled optimism the global economy is recovering.

Canon Inc., which gets almost a third of its sales from the Americas, surged 5.6 percent in Tokyo. Honda Motor Co. leapt 5.8 percent, after forecasting a profit for the current year on optimism the U.S. car market may recover. BHP Billiton Ltd., the world’s largest mining company, gained 2.8 percent in Sydney after copper and oil climbed.

“Various statistics are suggesting the global economy is bottoming out,” said Kenichi Hirano, general manager at Tachibana Securities Co. “Investors are assessing the situation with a greater deal of optimism.”

The MSCI Asia Pacific Index climbed 1.8 percent to 89.65 as of 9:17 a.m. in Tokyo. The gauge has risen 11 percent in April, poised for the best monthly performance since March 1999, amid optimism the worst of the global recession is over.

The Nikkei 225 Stock Average surged 3.7 percent in Japan, where stock markets resumed trading after a holiday yesterday. Australia’s S&P/ASX 200 Index rose 2.1 percent. All markets open in Asia advanced.

Futures on the U.S. Standard & Poor’s 500 Index added 0.1 percent. The gauge climbed 2.2 percent yesterday as a government report showed consumer spending, which accounts for about 70 percent of the U.S. economy, grew at the fastest pace in two years last quarter.

Consumer Spending

The U.S. doesn’t need a second fiscal stimulus package, said former Federal Reserve Chairman Paul Volcker, one of President Barack Obama’s top economic advisers. The European Commission yesterday said executive and consumer confidence in the region rose in April for the first time in 11 months.

A Japanese government report showed today that the country’s industrial output rose for the first time in six months and at twice the pace predicted by economists, adding to evidence the worst of the recession may be over.

Canon, the world’s largest maker of digital cameras, jumped 5.6 percent to 2,935 yen. The stock also rose as the yen weakened against the dollar to as much as 97.78 from a one-month high of 95.63 on April 28. A weaker local currency boosts the value of repatriated overseas sales for Japanese businesses.

Honda, which sells about 42 percent of its cars in North America, climbed 5.8 percent to 2,750 yen. The company expects operating profit of 10 billion yen ($103 million) this fiscal year. Honda posted a loss for the three months ended last month, in part because of the stronger yen.

“Regardless of what automakers do, they can’t turn around until demand for cars recovers,” said Hirano of Tachibana Securities.

BHP rose 2.8 percent to A$33.17. Copper futures jumped 4.6 percent in New York yesterday, the biggest gain in three weeks, while crude oil advanced 2.1 percent.

To contact the reporter for this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net.