Asian Stocks Rise on Australian Growth Outlook, Data From U.S.

By Jonathan Burgos

Nov. 6 (Bloomberg) -- Asian stocks rose, paring a weekly loss, after Australia’s central bank more than tripled its economic-growth forecast and reports showed U.S. unemployment claims and worker productivity beat estimates.

Macquarie Group Ltd., Australia’s largest investment bank, and Westpac Banking Corp., the country’s second-largest bank, both gained more than 2.5 percent. James Hardie Industries NV, the top seller of home siding in the U.S., advanced 2.6 percent. Asahi Glass Co., Asia’s largest glassmaker, climbed 6.5 percent in Tokyo after forecasting a narrower loss. Pioneer Corp. surged 8.9 percent after the maker of car-navigation systems said it needs less funds than previously expected as earnings improve.

“Macro-economic numbers and earnings should continue to surprise on the upside,” said Manpreet Gill, Singapore-based strategist for Asia at Barclays Wealth, which has $223 billion in assets. “Equities are not expensive, and investors waiting for a big correction may miss the boat.”

The MSCI Asia Pacific Index gained 1 percent to 115.88 as of 4:15 p.m. in Tokyo, with twice as many stocks advancing as declining. The gauge has fallen 0.5 percent this week. It has climbed 29 percent this year, on course for its steepest annual increase since 2003, as governments around the world pumped money into the financial system to revive the global economy.

Japan’s Nikkei 225 Stock Average added 0.7 percent to 9,789.35. China’s Shanghai Composite Index rose 0.3 percent and Hong Kong’s Hang Seng Index gained 1.6 percent. Australia’s S&P/ASX 200 Index climbed 1.9 percent, the sharpest advance in the Asia-Pacific, and most of the region’s benchmark indexes gained.

U.S. Stocks Surge

In the U.S. yesterday, the Dow Jones Industrial Average surged 2.1 percent, the most since July. Data from the Labor Department showed initial joblessness claims dropped to 512,000 last week, the lowest level since January, and worker productivity climbed at a 9.5 percent annual rate in the third quarter, the fastest pace in six years. Labor costs also fell, signaling companies may start hiring again. Futures on the Standard & Poor’s 500 Index were little changed today.

“Unemployment is the biggest problem in the U.S. right now and we’re seeing some positive signs there,” Kiyoshi Ishigane, a strategist in Tokyo at Mitsubishi UFJ Asset Management Co., which oversees about $56 billion.

James Hardie gained 2.6 percent to A$7.18. Sony Corp., Japan’s biggest exporter of televisions, climbed 1.6 percent to 2,590 yen. Canon Inc., the world’s largest camera maker, advanced 1.8 percent to 3,410 yen. Li & Fung Ltd., the biggest supplier of clothes and toys to Wal-Mart Stores Inc. and Target Corp., added 0.8 percent to HK$32.85 in Hong Kong.

Macquarie Group climbed 4.1 percent to A$49.60. Westpac gained 2.6 percent to A$26.55 and Melbourne-based BHP Billiton Ltd., the world’s largest mining company, added 2.6 percent to A$37.40. BHP and Westpac were the biggest contributors to the MSCI index’s advance.

Australian GDP

Australia’s central bank said the economy will expand at more than three times the pace forecast in August, and signaled it will continue to lead the world in raising interest rates.

“A further gradual lessening of monetary stimulus is likely to be required over time,” the Reserve Bank said in Sydney today. Gross domestic product will rise 1.75 percent this year and 3.25 percent in 2010, the bank said. Three months ago, it forecast gains of 0.5 percent and 2.25 percent respectively.

Stocks in the MSCI Asia Pacific Index are valued at 22 times estimated earnings, compared with 17 times for the Standard & Poor’s 500 in the U.S. and 15 times for the Dow Jones Stoxx 600 Index in Europe.

Earnings, Financing

Asahi Glass jumped 6.5 percent to 815 yen. The company said it will book a net loss of 5 billion yen ($55 million) this year, narrower than its previous forecast of 34 billion yen.

DBS Group Holdings Ltd., Southeast Asia’s biggest lender, added 2.9 percent to S$13.36 and was the biggest contributor to gains in Singapore’s benchmark index. The company reported third-quarter net income of S$563 million ($403 million), compared with the S$438 million estimated on average by analysts surveyed by Bloomberg.

Pioneer advanced 8.9 percent to 246 yen. The company said it needs to raise only half of the 40 billion yen it had targeted by March 2012.

NEC Corp., Japan’s largest maker of personal computers, surged 10 percent to 273 yen. The company plans to raise as much as 134 billion yen ($1.5 billion) by selling stock to help fund new businesses and pay off debt. NEC had the steepest gain in the MSCI index.

To contact the reporter for this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net.