By Shani Raja
Jan. 15 (Bloomberg) -- Asian stocks rose, driving the MSCI Asia Pacific Index to a five-month high, as forecasts from Commonwealth Bank of Australia and Intel Corp. boosted finance and technology companies.
Commonwealth Bank, the nation’s biggest lender, jumped 2.3 percent in Sydney after saying first-half unaudited cash profit rose. Hynix Semiconductor Inc. climbed 2.6 percent in Seoul as Intel forecast first-quarter sales that beat analyst estimates. JFE Holdings Inc, Japan’s second-largest steelmaker by market value, fell 3.4 percent on speculation it may have to pay more for iron ore. Cnooc Ltd., China’s largest offshore oil producer, sank 1.1 percent as crude fell for a fifth day.
The MSCI Asia Pacific Index gained 0.5 percent to 126.95 at 5:50 p.m. in Tokyo, its highest level since Aug. 12. The measure has risen 2.2 percent in the past five days. The gauge surged 53 percent in the past year on signs of recovery in the region’s economies.
“The good news is still flowing through, but some of it is looking a bit more mixed,” said Shane Oliver, head of investment strategy in Sydney at AMP Capital Investors, which oversees about $90 billion globally. “Investors are feeling a bit cautious.”
Japan’s Nikkei 225 Stock Average gained 0.7 percent, while Taiwan’s Taiex index advanced 0.8 percent. China’s Shanghai Composite Index added 0.3 percent.
Improved Markets
South Korea’s Kospi Index climbed 1 percent. Daewoo Shipbuilding & Marine Engineering Co. surged 15 percent in Seoul after Posco’s chief executive officer said he would consider a bid for the shipbuilder.
Futures on the U.S. Standard & Poor’s 500 Index were little changed. The gauge added 0.2 percent yesterday as technology shares climbed before Intel reported earnings and the government reported a better-than-estimated gain in business inventories.
The MSCI Asia Pacific Index was set for its fourth weekly advance as reports this week of a bigger-than-expected increase in Australian jobs, a surge in Chinese exports and Japanese machine-tool orders boosted confidence in the strength of the global economy.
The gauge has climbed 80 percent from its lowest level in more than five years on March 9, outpacing gains of 70 percent by the S&P 500 and 64 percent for Europe’s Dow Jones Stoxx 600 Index. Stocks in the MSCI measure are valued at 20 times estimated earnings, compared with 15 times for the S&P and 13 times for the Stoxx 600.
Bank Profits
Commonwealth Bank gained 2.3 percent to A$58.10, reversing an earlier 1 percent decline. The lender said minutes before trading ended in Sydney today that first-half cash profit rose 44 percent from a year ago, boosted by fewer bad debts, improved equities markets and volume growth.
National Australia Bank Ltd. added 0.9 percent to A$27.30. Westpac Banking Corp. rose 0.5 percent to A$25.50.
“The operating environment for Australian banks is very supportive,” said Prasad Patkar, who helps manage about $1.6 billion at Platypus Asset Management in Sydney. “The appetite for loans remains healthy and the risk of bad debts reduces in such an environment.”
Intel, the world’s biggest chipmaker, predicted higher first-quarter revenue than analysts estimated as demand for notebook computers rebounded. Fourth-quarter net income increased more than ninefold to $2.28 billion, or 40 cents a share, the company said in a statement.
‘Second Wind’
Hynix, the world’s second-largest computer-memory chipmaker, gained 2.6 percent to 26,100 won. The company was raised to “buy” from “neutral” at Goldman Sachs Group Inc., which said shares of dynamic random access memory chipmakers are “primed for a second wind of strong outperformance.”
Elpida Memory Inc., Japan’s biggest maker of computer- memory chips, added 1.5 percent to 1,839 yen after raised its rating on the company to “buy” from “neutral.” Acer Inc., the world’s second-largest computer supplier, gained 1 percent to NT$103 in Taipei. Clevo Co., which makes laptop computers, jumped 6.9 percent to NT$58.80 in Taipei.
“The outlook for corporate earnings will likely increase after the earnings at Intel,” said Kazuhiro Takahashi, a general manager at Daiwa Securities SMBC Co. in Tokyo.
Daewoo Shipbuilding surged 15 percent to 22,250 won. Posco CEO Chung Joon Yang said yesterday at an investor relations session in Seoul that he would consider a bid for the company.
JFE Holdings fell 3.4 percent to 3,450 yen. Steelmakers may have to pay more for iron ore after Rio Tinto Group, the world’s third-largest mining company, said yesterday that sales of the material rose to a record. BlueScope Steel Ltd., Australia’s largest steelmaker, dropped 1.9 percent to A$3.03.
Cnooc sank 1.1 percent to HK$12.28, while PetroChina Co., China’s largest oil producer, dropped 1.1 percent to HK$9.52. Crude oil in New York fell 0.5 percent in after-hours trading to $79.01 a barrel, taking a five-day decline to 4.5 percent.
Santos Ltd., Australia’s No. 3 oil and gas producer, dropped 1.4 percent to A$13.76. The stock was cut to “neutral” from “buy” by analysts at Bank of America Corp.’s Merrill Lynch, who cited higher costs and the risk of “a material capital raising.”
To contact the reporters for this story: Shani Raja in Sydney at sraja4@bloomberg.net.
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