Asian Consumer Stocks Advance; China Shipping Companies Decline

By Shani Raja

Sept. 23 (Bloomberg) -- Asian consumer-related shares rose on expectations the Group of 20 Nations will continue policies to support growth. Chinese shipping lines fell on lower commodity cargo rates.

Geely Automobile Holdings Ltd. soared 19 percent in Hong Kong after selling convertible bonds. Billabong International Ltd., Australia’s biggest surfwear maker, rose 3.1 percent. Woodside Petroleum Ltd., Australia’s second-biggest oil and gas producer, jumped 5.1 percent, after crude oil advanced for the first time in four days yesterday. China Cosco Holdings Co., the world’s largest operator of dry-bulk ships, lost 3 percent.

“G-20 leaders are expected to continue to support fiscal policy stimulus and the global banking system, with the removal of stimulus to take place in a globally coordinated manner,” said Stephen Halmarick, Sydney-based head of investment markets research at Colonial First State, which holds about $115 billion. “There are still concerns about the sustainability of the recovery beyond the stimulus.”

The MSCI Asia Pacific excluding Japan Index rose 0.3 percent to 394.49 as of 7:20 p.m. in Tokyo, after touching its highest point in a year. About three stocks on the index fell for every two that gained. The gauge that includes Japan has rallied 69 percent from a five-year low on March 9. Australia’s benchmark S&P/ASX 200 Index advanced 1.5 percent at the close, snapping three straight days of losses. Japanese markets were closed for a holiday.

Broker Upgrades

New Zealand’s NZX 50 Index added 0.2 percent, as a government report today showed the nation emerged from recession. The unexpected growth in gross domestic product drove the U.S. dollar to a 13-month low against New Zealand’s currency.

South Korea’s Kospi Index lost 0.4 percent to 1,711.47 at the close. Hynix Semiconductor Inc. slumped 5.4 percent, leading a gauge of technology stocks on the ex-Japan Asian index lower, after Hyosung Corp. submitted a bid to gain control of the world’s second-biggest computer-memory chipmaker. Korea Express Co., the nation’s largest logistics company, slumped 5 percent to 71,000 won after prosecutors raided its offices. Hong Kong’s Hang Seng Index dropped 0.5 percent at the close.

Futures on the U.S. Standard & Poor’s 500 Index gained 0.1 percent. The gauge climbed 0.7 percent to 1,071.66 yesterday following a spate of brokerage upgrades. JPMorgan Chase & Co. had its earnings estimate raised at Bank of America Corp., while Citigroup Inc. advised buying Macy’s Inc. shares.

Asia Leading Recovery

“A slew of broker and earnings upgrades provided the impetus and now there’s plenty of cash to follow the advice,” said Cameron Peacock, a Melbourne-based analyst at IG Markets. “The demand from cash on the sidelines will make dips shallow and short lived.”

International Monetary Fund Managing Director Dominique Strauss-Kahn called on leaders from the G-20 nations to maintain policies to pull the world economy out of recession and said China will play a larger role in shaping a sustainable recovery. The Washington-based IMF is advising officials around the world not to withdraw economic stimulus programs too soon as they chart a path to lasting growth.

The Federal Reserve has started talks with bond dealers about withdrawing the unprecedented amount of cash injected into the financial system in the last two years, according to people with knowledge of the discussions.

Chinese Expansion

The Group of 20 country leaders will meet in Pittsburgh Sept. 24-25 to work on an accord to prevent a repeat of the worst financial crisis since the Great Depression and ensure a sustained recovery.

The Asian Development Bank yesterday raised its economic forecast for the region on growing expansion in China, India and Indonesia. The ADB predicted Asia, excluding Japan, will grow 3.9 percent in 2009.

“The ADB forecasts support the view that Asia, led by China, will be the first region of the world out of recession,” said Halmarick.

Geely Automobile surged 19 percent to HK$2.13. The company plans to raise HK$2.59 billion selling convertible bonds and warrants to a fund managed by Goldman Sachs Group Inc. Kia Motors Corp., South Korea’s second-biggest automaker, rallied 2.5 percent to 18,150 won.

Billabong, Australia’s biggest surfwear maker, rose 3.1 percent to A$11.12. Fairfax Media Ltd., Australia’s second- largest newspaper publisher, surged 4.6 percent to A$1.695. Chairman Ron Walker will meet investors over whether he should stand for re-election after two directors called for his departure.

Commodity Producers Rise

Woodside Petroleum rose 5.1 percent to A$52.11. Santos Ltd., Australia’s third-biggest oil and gas producer, added 0.5 percent to A$15.15. In New York, crude oil for October delivery rose 2.6 percent to $71.55 yesterday. It was $71.40 a barrel in after-hours trading. SK Energy Co., South Korea’s largest oil refiner, climbed 4.5 percent to 127,500 won.

Rio Tinto Group, the world’s third-largest mining company, gained 2.3 percent to A$61.74. BHP Billiton Ltd., the world’s biggest mining company, added 0.9 percent to A$38.35. Copper futures for December delivery gained 2.1 percent to $2.8645 a pound yesterday as the dollar weakened, boosting demand for commodities as a hedge against inflation. A measure of metals traded in London rose 1.3 percent yesterday.

China Cosco, the world’s biggest operator of dry bulk ships, fell 3 percent to 12.62 yuan in Shanghai. China Shipping Container Lines Co., the nation’s second-biggest container line, slumped 1.6 percent to 3.08 yuan.

To contact the reporter on this story: Shani Raja in Sydney at sraja4@bloomberg.net.