Asian Stocks Rise Most in Three Weeks on Growth Speculation

By Shani Raja and Ian C. Sayson

Sept. 16 (Bloomberg) -- Asian stocks rose, driving the MSCI Asia Pacific Index to its largest gain in three weeks, as a better-than-estimated U.S. retail sales report boosted prospects for exporters’ sales.

Samsung Electronics Co., the world’s largest maker of liquid-crystal display televisions, surged 3.4 percent. Canon Inc., which gets 28 percent of its revenue in the Americas, climbed 4.2 percent in Tokyo as Nomura Holdings Inc. recommended buying the shares. National Australia Bank Ltd., the nation’s largest by assets, rose 3.3 percent, after an index of the country’s leading economic indicators climbed.

“Asia and other emerging markets have strong domestic economies that will benefit further from a global recovery,” said Paul Joseph Garcia, who helps manage about $1.45 billion as chief investment officer at the Philippine unit of ING Investment Management Ltd. “Trade will pick up and that’s good for Asia’s export-oriented industries.”

The MSCI Asia Pacific Index gained 1.9 percent to 118.03 as of 7:42 p.m. in Tokyo, the biggest advance since Aug. 24. The gauge has climbed 67 percent from a more than five-year low on March 9 as stimulus measures around the world pulled economies out of recession. Stocks on the gauge are priced at an average 23.9 times estimated earnings, up from 15 times at the March low.

Japan’s Nikkei 225 Stock Average rose 0.5 percent, paring an earlier climb of 1.7 percent, amid concern new Prime Minister Yukio Hatoyama’s policies will delay the nation’s economic recovery. Hong Kong’s Hang Seng Index rose 2.6 percent. China’s Shanghai Composite Index lost 1.1 percent as government data showed investors opened fewer trading accounts.

BHP Billiton, Halex

Australia’s S&P/ASX 200 Index climbed 2.4 percent with Telstra Corp. surging 4.2 percent on optimism it will get access to a new national Internet network. BHP Billiton Ltd., the world’s largest mining company, gained 2 percent after commodity prices advanced. Halex Holdings Bhd., an agricultural chemicals manufacturer, surged 21 percent on its debut in Kuala Lumpur.

Futures on the U.S. Standard & Poor’s 500 Index added 0.5 percent. The gauge increased 0.3 percent yesterday after a government report showed retail sales excluding automobiles gained 1.1 percent last month, while the Federal Reserve Bank of New York said its general economic index rose to 18.9 in September. Both reports surpassed economist estimates.

Billionaire investor Warren Buffett said yesterday his company is buying equities, while Federal Reserve Chairman Ben S. Bernanke said the U.S. recession is “very likely” over.

Samsung surged 3.4 percent to 795,000 won in Seoul. Canon, which makes digital cameras and office equipment, climbed 4.2 percent to 3,700 yen after Nomura raised its rating on the stock to “buy” from “neutral.” Li & Fung Ltd., the biggest supplier of clothes and toys to Wal-Mart Stores Inc. and Target Corp., climbed 3.1 percent to HK$28.30.

‘It Looks Good’

“The next six months seem reasonably easy to anticipate: no inflation, good economic growth,” Former Fed Chairman Alan Greenspan said in a broadcast to Tokyo clients of Deutsche Bank Securities Inc. today. “It looks good for the near term.”

A gauge of Australian leading indicators, which focuses on future economic growth, gained 1.1 percent to 248.5 points in July from June as shares and dwelling approvals climbed, Westpac Banking Corp. and the Melbourne Institute said in Sydney today. The index shrank at an annualized rate of 1.8 percent in July after contracting 4.6 percent the previous month.

National Australia Bank added 3.2 percent to A$29.05. Rival Commonwealth Bank of Australia advanced 4.1 percent to A$48.40.

Telstra, the nation’s biggest telephone company, gained 4.2 percent to A$3.24. Stephen Conroy, the country’s communications minister, told national radio the government may give Telstra a stake in its Internet network.

Improving Data

Shares of Telstra fell 3.2 percent yesterday after Conroy said the company must separate its fixed-line assets from its consumer business or face curbs on mobile-services expansion.

The MSCI Asia Pacific Index’s six-month rally has been driven by better-than-estimated economic reports and corporate earnings. Of 645 companies on the gauge that reported net income for the latest quarter, 225 beat analyst predictions, compared with 138 that missed.

China’s statistics bureau last week reported a greater- than-estimated surge in August industrial production, while a Westpac and Melbourne Institute survey last week showed Australian consumer confidence jumped this month to the highest level in more than two years.

“We expect markets to rise,” said Prasad Patkar, who helps manage about $1.2 billion at Platypus Asset Management in Sydney. “Markets typically climb walls of worry.”

Oil, Metals Prices

BHP gained 2 percent to A$39. A measure of six metals in London advanced 1.1 percent, rising for the first time in five sessions. Rio Tinto Group, the world’s third-largest mining company, gained 2 percent to A$60.18.

Gold producers rallied after the precious metal closed above $1,000 an ounce for the third-straight day. Newcrest Mining Ltd., Australia’s largest gold producer, advanced 4.5 percent to A$34.95. Zijin Mining Group Co., China’s largest bullion producer, surged 7.8 percent to HK$8.15 in Hong Kong.

Oil producers advanced as futures of the raw material climbed 3 percent to $70.93 a barrel in New York yesterday, the biggest increase since Sept. 8. Inpex Corp., Japan’s largest oil explorer, climbed 2.4 percent to 797,000 yen, while PetroChina Co., China’s largest oil producer, gained 2.9 percent to HK$9.24.

Nippon Steel Corp. rose 1.2 percent to 339 yen, while JFE Holdings Inc. rose 0.9 percent to 3,230 yen after JPMorgan Chase & Co. rated both companies “overweight” in new coverage.

Halex Holdings jumped 21 percent to 94 sen on its first day of trading on the Kuala Lumpur stock exchange. The company sold shares at 78 sen in its initial share sale.

To contact the reporters on this story: Shani Raja in Sydney at sraja4@bloomberg.net; Ian C. Sayson in Manila at isayson@bloomberg.net.