Asian Stocks Rise After U.S. Jobs Report; Canon, Billabong Gain

By Jonathan Burgos and Shani Raja

Dec. 7 (Bloomberg) -- Asian stocks rose for the fifth time in six days after the U.S. reported its lowest monthly job losses since the recession began and Nomura Holdings Inc. boosted its rating on Japanese makers of semiconductor equipment.

Canon Inc., the world’s largest maker of cameras and which gets 28 percent of revenue in the Americas, added 3.3 percent in Tokyo as the U.S. jobs report on Dec. 4 buoyed confidence in an economic recovery. Billabong International Ltd., a clothing maker that gets more than half its revenue in the Americas, added 4.9 percent in Sydney. Tokyo Electron Ltd., the world’s second-largest producer of chip-making equipment, climbed 3.7 percent after Nomura turned “bullish” on the industry.

“Japanese and Australian exporters will benefit at the margin from a more robust U.S. economy and its perceived increased appetite for imports,” said Tim Schroeders, who helps manage $1.1 billion at Pengana Capital Ltd. in Melbourne.

The MSCI Asia Pacific Index rose 0.1 percent to 120.29 as of 7:28 p.m. in Tokyo, with more than four stocks advancing for every three that declined.

The gauge has rallied 70 percent from a five-year low on March 9 after governments worldwide cut interest rates and pledged more than $2 trillion in stimulus since September 2008 to revive global economic growth. On Dec. 1, Japan’s central bank announced a 10 trillion-yen ($111 billion) credit program.

Shares in the MSCI index trade at 22 times estimated earnings, compared with 18 times for the Standard & Poor’s 500 Index in the U.S. and 16 times for the Dow Jones Stoxx 600 Index in Europe.

U.S. Jobs Reports

Futures on the S&P 500 lost 0.6 percent. The gauge added 0.6 percent in New York on Dec. 4, after a report from the Labor Department showed employers in the U.S. cut the fewest jobs in November since the recession began. Payrolls dropped by 11,000, and the joblessness rate declined to 10 percent.

Japan’s Nikkei 225 Stock Average climbed for a sixth day, adding 1.5 percent to 10,167.60. Japan Airlines Corp., Asia’s largest airline by sales, jumped 7 percent to 107 yen, the steepest climb in the index. The Japanese government may include a loan guarantee of as much as 700 billion yen in its second supplementary budget for fiscal 2009, the Yomiuri newspaper said.

Taiwan’s benchmark index advanced 1.6 percent. The Kospi Index rose 0.5 percent in Seoul as Samsung Electronics Co., the world’s largest maker of computer-memory chips, gained 1.2 percent. Hong Kong’s Hang Seng Index lost 0.8 percent. Australia’s S&P/ASX 200 Index dropped 0.6 percent.

Dollar Strengthens

Canon gained 3.3 percent to 3,750 yen, the biggest contributor to the MSCI index’s advance. Sony Corp., a maker of electronics that gets almost 25 percent of sales in the U.S., climbed 2.8 percent to 2,580 yen. Billabong advanced 4.9 percent to A$11.03, the sharpest increase in the S&P/ASX 200.

The dollar strengthened against most of its major counterparts after the U.S. jobs reports. It climbed to as much as 90.46 yen today from 88.25 at the close of stock trading in Tokyo on Dec. 4, increasing income for Japanese companies when U.S. revenue is converted into their home currency. The dollar had its biggest weekly gain in a decade versus the yen last week, rebounding from a 14-year low the week before.

Tokyo Electron gained 3.7 percent to 5,640 yen after Nomura boosted its rating on Japan’s semiconductor-production-equipment industry to “bullish” from “neutral.” Advantest Corp., the world’s biggest maker of memory-chip testers, climbed 3.6 percent to 2,175 yen. Hitachi Kokusai Electric Inc. advanced 8.4 percent to 727 yen.

Samsung Electronics gained 1.2 percent to 771,000 won. Technology stocks as a group contributed the most to the MSCI Asia Pacific Index’s advance.

Gold Stocks Decline

Shipping stocks gained after the Baltic Dry Index, which measures the price to ship commodities, advanced for a third day in London on Dec. 4. Mitsui O.S.K. Lines Ltd., the world’s largest operator of iron-ore transporters, rose 2.8 percent to 515 yen. STX Pan Ocean Co., South Korea’s biggest bulk carrier, added 2.5 percent to S$13.78 in Singapore.

Gold stocks fell after futures for February delivery slumped by the most in a year on Dec. 4, dropping 4 percent to $1,169.50 at the close of floor trading on the New York Mercantile Exchange’s Comex unit.

Newcrest Mining Ltd., Australia’s biggest gold producer, tumbled 6 percent to A$36. Zijin Mining Group Co., China’s biggest gold producer, sank 5.1 percent to HK$8.30 in Hong Kong. Korea Zinc Co., which got about a quarter of last year’s sales from gold and silver, lost 5.1 percent to 204,500 won. Newcrest and Zijin had the sharpest drops in the MSCI Asia Pacific Index.

BHP Billiton Ltd., the world’s biggest mining company, fell 1.9 percent to A$40.61 after the London Metal Exchange Index of six metals including copper and zinc retreated for a second day on Dec. 4. Jiangxi Copper Co. Ltd., China’s biggest producer of the metal, slipped 2.6 percent to HK$19.82 in Hong Kong.

“Gold stocks were always going to get smashed today after the moves in the U.S. dollar,” said Cameron Peacock, a market analyst at IG Markets in Melbourne. “They’ve had a great run over recent weeks. Gold’s big sell-off on Friday is being seen as an opportunity for people to lock in profits.”

To contact the reporter on this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net; Shani Raja in Sydney at sraja4@bloomberg.net.