Most Asian stocks advanced, with the regional index near a 2 1/2-year high, as commodity producers gained after copper climbed to a record, crude oil rose and U.S. retail sales increased last week, adding to signs the economic recovery is on track.
Canon Inc., the world’s largest maker of cameras that gets about 28 percent of sales from the U.S., increased 1.9 percent in Tokyo. BHP Billiton Ltd., the world’s biggest mining company and Australia’s largest oil and has produced, climbed 0.9 percent in Sydney. Mitsui & Co., which counts commodities as its biggest source of profit, gained 0.7 percent. Sanyo Electric Co., a maker of rechargeable batteries, slumped 5.1 percent after its parent Panasonic Corp. announced plans to delist the company.
“The world economy is recovering moderately,” said Naoki Fujiwara, who helps oversee $6 billion in Tokyo at Shinkin Asset Management Co. “Investors see money is flowing into stocks and commodities, boosting confidence in the market.”
The MSCI Asia Pacific Index rose 0.1 percent to 134.94 as of 4:37 p.m. in Tokyo, with about the same number of stocks rising and falling. The gauge climbed to its highest level since July 2008 on Dec. 14 as U.S. economic reports boosted confidence in a global recovery, easing concerns that Europe’s debt crisis and China’s measures to slow inflation will hurt growth.
Japan’s Nikkei 225 Stock Average dropped 0.2 percent, erasing gains of as much as 0.2 percent, after the government said it is becoming more pessimistic about exports and business sentiment. Japan’s export growth accelerated for the first time in nine months in November, data released today showed.
South Korea’s Kospi Index, Australia’s S&P/ASX 200 Index and New Zealand’s NZX 50 Index climbed each climbed 0.1 percent. Taiwan’s Taiex Index gained 0.4 percent. China’s Shanghai Composite Index declined 0.9 percent as an increase in gasoline and diesel prices sparked concern inflation will accelerate.
Recovery Trend
Futures on the Standard & Poor’s 500 Index were little changed today after Nike Inc., the world’s largest maker of athletic shoes, reported orders that fell short of analysts’ estimates and chip maker Xilinx Inc. forecast sales will drop.
The measure rose 0.6 percent yesterday in New York to 1,254.60, surpassing its closing level on Sept. 12, 2008, the last trading day before Lehman Brothers Holdings Inc. filed the world’s biggest bankruptcy.
Same-store sales at a selection of U.S. retailers rose 4.2 percent last week, the biggest jump of this holiday season, as more consumers finished shopping, according to a survey of retailers released yesterday.
“U.S. economic indicators continue to exceed expectations and the U.S. economy is on a recovery trend,” said Hiroichi Nishi, an equities manager in Tokyo at Nikko Cordial Securities Inc. “The global economic recovery, surplus money and confidence in government measures are boosting commodity prices.”
Canon, HTC
Gauges of information technology companies, energy and raw material producers led the advance among the 10 industry groups in the MSCI Asia Pacific Index.
Canon climbed 1.9 percent to 4,265 yen. HTC Corp., the Taiwanese mobile phone maker that counts America as its biggest market, increased 4.1 percent to NT$914. Hyundai Motor Co., South Korea’s biggest carmaker, gained 2.3 percent to 181,500 won in Seoul.
BHP Billiton advanced 0.9 percent to A$45.82 in Sydney. Mitsui & Co. climbed 0.7 percent to 1,325 yen. Noble Group Ltd., a Hong Kong-based supplier of agricultural and industrial commodities, rose 1 percent to S$2.09 in Singapore.
Crude oil for February delivery gained 45 cents to $89.82 a barrel in New York yesterday, the highest settlement since Oct. 7, 2008. The London Metal Exchange Index of six metals including copper and aluminum climbed 1.8 percent yesterday, rising for a third day. Copper, rubber and cotton prices rose to record levels overnight.
Rig Order
In Singapore, Sembcorp Marine Ltd., the world’s second- largest oil-rig builder, climbed 2 percent to S$5.09. The company said it won an order two build two jack-up rigs, valued at $400 million, from Noble Corp., the world’s third-largest deep-water oil and gas driller.
The MSCI Asia Pacific Index increased 12 percent this year through yesterday, compared with gains of 13 percent by the S&P 500 and 11 percent by the Stoxx Europe 600 Index. Stocks in the Asian benchmark were valued at 14.8 times estimated earnings on average at yesterday’s close, versus 14.7 times for the S&P 500 and 12.4 times for the Stoxx 600.
Among stocks that fell, Sanyo Electric slumped 5.1 percent to 130 yen in Tokyo, its lowest close since July 28. Controlling shareholder Panasonic Corp. said it will give minority shareholders 0.115 shares each Sanyo share as part of plans to delist its 81 percent-owned subsidiary. Panasonic fell 1.5 percent to 1,152 yen.
Australian Luxury Homes
Lend Lease Group, Australia’s No.1 developer, dropped 1.1 percent to A$8.65 in Sydney after Deutsche Bank AG lowered its rating to “hold” from “buy.”
The stock also fell after the Real Estate Institute of Australia predicted that prices of luxury homes in the country will drop next year as homes worth at least A$1 million ($1 million) listed for sale increase. Leighton Holdings Ltd., Australia’s largest construction company, fell 2 percent to A$31.52.
Wilmar International Ltd., the world’s biggest palm-oil trader, dropped 4.6 percent to S$5.65 in Singapore after saying it will invest 889.2 million yuan ($134 million) in a joint venture with Kerry Properties (China) Ltd. and Shangri-La China Ltd. to develop a hotel in China’s Liaoning province.
“We believe that the market may take this announcement negatively,” Goldman Sachs Group Inc. analysts Patrick Tiah and Nikhil Bhandari wrote in a note to clients today. “This appears to be a sharp departure from Wilmar’s agri-processing core business and there may be concerns on management losing focus.”
To contact the reporters on this story: Jonathan Burgos in Singapore at jburgos4@bloomberg.net. Norie Kuboyama in Tokyo at nkuboyama@bloomberg.net
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net.
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